Any thoughts on structured deposits?

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Any thoughts on structured deposits?

Postby whitecorp » Wed Nov 02, 2011 2:14 pm

As per above, I am possibly looking at equity linked based stuff. Then again, after the High Notes/Lehman brothers fiasco, I am uncertain if I should even consider such investments. Beyond stocks which I already own, I want something more stable but gives higher returns than bloody saving deposits/ fixed Ds. Sort of like spreading out risk. Any constructive advice is appreciated.

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Re: Any thoughts on structured deposits?

Postby financial_guru » Wed Nov 02, 2011 2:56 pm

Have you considered bonds (fixed-income) funds?

There is still capital risks, but they are not as volatile as equities. Returns are typically 3 - 6 % depending on underlying bond ratings.

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Re: Any thoughts on structured deposits?

Postby kaitlynM » Sat Nov 12, 2011 2:09 pm

That's a pretty nice plan, these days where economic crisis seemed to affect almost all of us, savings and investments will be a great idea to ensure that your money is in good hand. Students are also affected by financial crisis that's why many of them go for student loans. I read in an article that the government utilizes subsidized student loans as a method of motivating students to get higher degrees. As of 2012, however, graduate student loans will not have their interest subsidized, which will change responsibility for paying $18.1 billion over 10 years to pupils. Source of the article: Graduate student loans to lose interest subsidy
Last edited by kaitlynM on Sat Nov 19, 2011 12:20 pm, edited 1 time in total.

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Re: Any thoughts on structured deposits?

Postby River » Sun Nov 13, 2011 8:41 am

Bonds will generate enough interest to match inflation ie. the value of your money is protected over time.

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Re: Any thoughts on structured deposits?

Postby starlight1968sg » Sun Nov 13, 2011 9:09 am

River wrote:Bonds will generate enough interest to match inflation ie. the value of your money is protected over time.

Really?
Which bond?

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Re: Any thoughts on structured deposits?

Postby River » Sun Nov 13, 2011 9:29 am

Many come and go. The recent launch by Chung Kung (not sure if I spelted correctly), minimum sum $250000, 5.125%, maturity 5 years is one example.

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Re: Any thoughts on structured deposits?

Postby bobonana » Thu Dec 29, 2011 12:00 pm

Correct me if i am wrong but bonds are usually in large denominations so if you have large warchest bonds are definately a good option.

If your warchest is limited you can consider preference shares or even single premium . I use to purchase single premium products from Manulife and UOB Life assurance, capital guaranteed, four years lock in but returns are not fantastic around 3-4%, but sure as hell beats the FD rates. UOB LA is not longer around they have sold it to prudential.

UOB also have different series of structured deposit, usually link to equity. Capital guaranteed, usually lock in period is 5 years, they like to structure such as for example 5 years total guaranteed interest 8%, the bonus interest is based on the performance of the underlying asset target, for example the STI, based of shares or even gold prices. Not every series is appealing so have to do your homework.

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