What to do with US$150,000 | ExpatWoman.com
 

What to do with US$150,000

618
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EW GURU
Latest post on 31 January 2011 - 20:19

k... serious question here. I know zilch about investing in anything, be it stocks or property. I know enough to know there are a LOT of different ways to make one's money work for one but that's about as far as my knowledge on the subject goes and DH never seems to get his act in gear. We have this money just sitting there doing sod all and every once in a while I bring it up and he says that, yes we HAVE to do something and that he'll look at this that or the other tomorrow/this weekend/one day but nothing ever happens.
So for those who know anything about it, what would you do with $150,000. I am so clueless that I thought sticking it in an HSBC e-saver account at 3% was good but I was gently reprimanded for that.
What we're looking for is a balance of a decent return without too much risk.
If you can't advise, do you know of anyone out there who can and who can do so well?? I mean like a proper investment advisor with a good track record.
Thanks so much.

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EW NEWBIE
Latest post on 07 February 2011 - 08:54
I will buy any kind of land agricole or residential...I will look at Bulgaria, Romania and other eastern european country where the prices are still low and the economy growing...
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EW GURU
Latest post on 06 February 2011 - 21:43
It is all well and good to get some ideas for investments from EW posters or from websites, BUT at the end of the day, the information you will get may still not help you decide where to invest. It all depends on your current situation, your age, attitude to risk, tax position and some other factors specific to you. An independant financial advisor can help you decide what is best for you by conducting a fact find (with the information I mentioned above). An independant financial advisor is either paid by a commision by you or he gets paid by the company who you invest into (at the same time he gets discounts that you cannot get directly).This would be disclosed at outset. Depending on your nationality, you may find that it may not be possible to invest directly in your country anymore and get the tax benefits (UK being an eg with Isas) so using the service of an independant financial adviser may be cost effective in the long term especially if the adviser gets paid by the company rather than by commision from you. Good luck with whatever you decide.
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EW EXPERT
Latest post on 06 February 2011 - 21:20
Historically gold can be a good investment - over time, and sometimes a long time (http://www.goldprice.org/gold-price-history.html#5_year_gold_price is a link that can show you gold prices) Gold has appreciated rapidly over the past several years because of global political upheaval - it's an investment you have to research, actually having real gold requires a place to keep it safe and then if you decide to sell it (depending on where you are at the time) assay costs may be steep. YOu could invest in gold certificates (where you have a piece of paper saying you own x amount of gold). Research and education are the keys before committing to any investment strategy and diversification can help spread any risks to any one investment
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EW EXPLORER
Latest post on 06 February 2011 - 20:18
I had a similar conversation with a work colleague recently. She suggested buying gold as gold doesnt lose value, only increases in value. Then I suggested you would need to keep the gold in the bank vaults as I wouldnt want it in a safety deposit box at home! And who would carry the stuff when ready to cash it in? Apparently a great idea however I know nothing about investments, gold or how much $150k would weigh! ;)
Anonymous (not verified)
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EW NEWBIE
Latest post on 06 February 2011 - 12:21
My DH and I went through the same questions early 2010 and were desperate to understand what options we had to help us towards a financially secure future. He spent a lot of time on various websites and blogs – he found motleyfool.com to be particularly helpful as well. Today, we are debt-free, have a ‘just in case’ emergency fund in a Term Deposit account and a balanced portfolio of investments which are doing quite well. Investing shouldn’t necessarily be a scary thing… you just need to research / understand the different options available, consider it a long term commitment and only invest money which you don’t need to access for the next 5+ years. There is no easy answer to your question and you just have to spend a lot of time reading and researching to find out the pros and cons of all options. It took my DH a good 6 months of researching before he attempted to do anything with the money. And he has learned a lot in that time……one thing though we knew right away was we wanted to take ownership of our financial future and avoid poor returns due to astronomical management fees usually charge by mutual funds. Will check with DH and see if I can post some links of the sites he found most helpful…..
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EW NEWBIE
Latest post on 01 February 2011 - 21:39
I would like to re-iterate what some of the other posters have said -there is no such thing as independent financial advice. these advisors are always selling something. I was really unimpressed by the world's local bank who kept on recommending a partcular investment product that I really didnt like due to the lack of flexibility and upfront fees. Of course they recommend it because the bank gets fees and commissions from these products. In general offshore banking is very expensive so you need to make sure that the benefit is greater than the cost - which will depend on a number of factors including your tax situation, your home country and others. good luck!
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EW GURU
Latest post on 01 February 2011 - 20:10
Oh wow. I just wanted to say thank you to everyone who took the time. I will go through all this when I have a minute (LO is teething I think!) and might come back with questions!! Thanks again.
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EW NEWBIE
Latest post on 01 February 2011 - 10:49
Oh I just saw the link you put up marycatherine - looks like a good site. Will check it out.
115
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EW NEWBIE
Latest post on 01 February 2011 - 10:47
m_king why don't you start by educating yourself on the options out there and getting a better understanding of how you may use this money in the future (kids education, property, retirement, etc). A really good and cheap way to do that is to read up on the topic. I can recommend this book: http://www.amazon.com/Investing-101-Bloomberg-Kathy-Kristof/dp/1576603075/ref=sr_1_fkmr1_1?ie=UTF8&qid=1296542579&sr=1-1-fkmr1 I read this a while back when I was trying to get a better understanding of the different investments. Its really easy to understand and it even teaches you how to work through your finances to understand what type of investments you should go for. I'm sure other people can recommend other good books/websites. Cheers
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EW EXPERT
Latest post on 01 February 2011 - 09:00
I think, in order of priority: Pay off any credit card debt, any loans, any mortgage. Build a cash buffer offshore (has to pay interest greater than inflation). Buy some shares/index funds (not sure what the mechanism is for doing this from tax point of view). Put the rest towards a deposit on a house.
Anonymous (not verified)
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EW NEWBIE
Latest post on 01 February 2011 - 08:47
m king, as you are talking in dollars are you from the states? If so then have you considered real estate? I think if I had that amount I would buy some rentable real estate, prices are low right now in the states right?
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EW MASTER
Latest post on 01 February 2011 - 08:43
If we had any extra money knocking around, we would put it to paying off a mortgage/invest it in property - I'm ignorant, would that kind of money buy you something outright in your own country? Anyhow, if you could buy something outright and then let it out until you needed to sell, you'd be on a gentle winner, on a long-term basis.
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EW EXPERT
Latest post on 01 February 2011 - 06:38
OK so for the short term - look into some fairly simple and easy to invest/divest products. Fixed term deposits will give you a better rate of interest than a savings account and you can choose from various time periods (from 30, 60, 90, 180 days or 1, 2, 3 or 5 years) And if you still haven't made a decision on where to invest at the end of the fixed deposit - you can get the bank to just roll it over into a new one until you do. The rate is fixed for the time the $$ is invested. You can always "break" the deposit if there's an emergency but be sure you understand the financial penalties involved. Money market accounts may offer more return and are relatively easy to understand - again, check out the risks and consider if you are comfortable with them. For myself, I invest offshore - with a reputable international bank. I know my tax status and how I can do this without attracting taxation from my home country. I don't want to recommend one bank over another but I can tell you this - during the financial crisis 2 -3 years ago, neither Canadian or Australian banks (or their respective banking systems) experienced any serious problems because of the way the banking systems are set up and operated and overseen. There are other banks from other countries (where the crisis hit harder) who were not as affected but that was because of that particular bank's own internal governance - they didn't jump on the subprime bandwagon. They did suffer somewhat just because of what was happening over all. As for free advice - as mine is - you get what you pay for I guess. One website I like that gives good info for the beginning investor is www.motleyfool.com - it is American focused but it helps to understand various financial products and services you can find anywhere. HTH <em>edited by marycatherine on 01/02/2011</em>
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EW EXPERT
Latest post on 31 January 2011 - 22:01
Thank you MC, I think apart from the tax bit which I know I need to understand more, I'm not sure I'm prepared to pay a financial advisor to tell me the rest of the basics (which I believe I know) and sell me the products (which he earns commission on) to meet set financial goals, based on assumptions. Is there such a thing as true independent advice? I wouldn't buy any financial product I cannot understand, or rather cannot be explained to me in terms that I can understand. So no, I wouldn't buy that car I have no idea about. Circumstances and priorities change with time, at the end of the day, we could only save what we could afford to save whilst balancing that against spending for the here and now. So, I might decide on the car today, but regret buying it in 6 months time when circumstances change and think it might have been a better idea not to have spent that cash.
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EW EXPERT
Latest post on 31 January 2011 - 21:44
I don't know what you know already, what your circumstances are now (nationality, taxation, etc.) or what you want in the future (retirement, return on investment, etc.) That's what I mean about educating yourself, if you don't know what you have, or what you want - how will you know if you've been successful. A financial planner can help you with those basics, but in the end, any decision you make is yours (stock market, real estate, investments) You have to be aware of the risks and benefits involved and you have to inform yourself - or I can sell you that bridge ;) see what I mean? Let me put this another way, would you and DH pay USD150,000 for a car you had never seen, never test driven, and had no idea about the model or manufacturer? People will spend more time, effort and energy on buying a car than on their financial future - don't be one of them.
1566
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EW EXPERT
Latest post on 31 January 2011 - 21:38
I just want to re-emphasize that you as the investor have the responsibility to educate yourselves. There are a lot of good financial advisors out there, but they do make their living on their recommendations to you. You need to inform yourself as well as seeking out advice. Otherwise, I have a lovely bridge that you might be interested in buying OK. I put my hand up. I consider myself educated financially, but I simply don't know what I don't know. I don't know what a financial advisor can tell me that I don't already know or could find out for myself. If someone could further elaborate, it would help enlighten me. <em>edited by Sugarbeach on 31/01/2011</em>
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EW EXPERT
Latest post on 31 January 2011 - 21:34
I just want to re-emphasize that you as the investor have the responsibility to educate yourselves. There are a lot of good financial advisors out there, but they do make their living on their recommendations to you. You need to inform yourself as well as seeking out advice. Otherwise, I have a lovely bridge that you might be interested in buying
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EW GURU
Latest post on 31 January 2011 - 21:32
You know the old saying ...don't put all your eggs in 1 basket!! Depending where your home country is, look at Blue chip shares, real estate..very cheap at the moment and then maybe the rest in a bank a/c
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EW EXPERT
Latest post on 31 January 2011 - 21:25
I'm the same, got money just sat in HSBC account because we are both so clueless what to do with it. So decided to get proactive and arranged meeting with Chris from Holbern Group this week to get some advice, can let you know how it goes and their contact details if you like I'd be interested to know how the meeting goes. Do they charge for the meeting or get commission from selling products?
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EW NEWBIE
Latest post on 31 January 2011 - 21:16
I'm the same, got money just sat in HSBC account because we are both so clueless what to do with it. So decided to get proactive and arranged meeting with Chris from Holbern Group this week to get some advice, can let you know how it goes and their contact details if you like
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EW NEWBIE
Latest post on 31 January 2011 - 20:33
Look at opening an off shore account and putting the money there, start with HSBC, lloyds which are both here in Dubai, go to both and ask what is the best they can do for you. Do not invest your money without really really good advice and don't just keep it here either. With this amount you need the right advice as invested wrongly, A) you could lose the lot, B) be liable for massive tax when you re enter your home country. This amount must have a paper trail. Look at off shore banks or a reputable company for INDEPENDANT advice. Alternatively the bank of SS62 is available at premium rates! LOL
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EW EXPERT
Latest post on 31 January 2011 - 20:33
Pay off the mortgage, if you have one, but sounds like you don't. I think keeping it in an account giving 3% return in the short term, while you think about what to do with it long term, is at least better than keeping it in an account paying zero interest, at least it's somewhat keeping up with inflation (maybe not UAE inflation). But do you want to tie this cash up or will you be needing it in the near future? There doesn't seem to be a lot of transparency in offshore products for expats. Unless someone could enlighten me. And no, I'm not interested in a financial advisor, just need to know what products are out there. <em>edited by Sugarbeach on 31/01/2011</em>
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EW NEWBIE
Latest post on 31 January 2011 - 20:27
Hi, my Dh is a senior FC here and he is very good (not just saying that) let me know if you would like his details
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EW OLDHAND
Latest post on 31 January 2011 - 20:27
In today's financial climate, 3% in a safe bank..........is the best you are going to get. Anyone offering better returns is either Irish or their second name is Madoff. And someone............if they can prove I'm wrong, please , please tell me. <em>edited by Livelytrish on 31/01/2011</em>
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EW EXPERT
Latest post on 31 January 2011 - 20:23
Take a look (and RESEARCH) money market investments or fixed (long) term deposits. I would do neither here. There are plenty of reputable off shore bankers who would be happy to assist you - I imagine HSBC has that capability as well as a number of well established banks in places like the channel islands (if taxation is an issue) etc. You MUST educate YOURSELF about the products and returns (and risks) as well as about those that provide them. I am a former banker - and while I can give a certain amount of advice - it is finally YOUR responsibility to be informed and educated as it is YOUR money
 
 

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