Assume we have more than enough fund in CPF investment account and in cash account (money that is not required in the next 5-7 years to ride out the next bear-bull cycle).
My friend actually asked this.
Interest-wise
Are you interest-wise? Current bank saving interest rate is around 0.X% and CPF OA rate is at 2.5%. Why would you spend the money that earns higher returns at 2.5% and keep the money that earns much lower returns at only 0.X%?
Then you argue that cash is more useful and can buy things leh. But, didn't I told you that one should come to stock market with money that is not required in the next 5-7 years to ride out the next bear-bull cycle.
When the mind is calm, you may invest with ease and in better position to ride out the next bear-bull cycle - Createwealth8888
HI 8888,
ReplyDeleteCompletely agreed.
But the problem is if you have "extra cash" where to park temporarily for month to month or up to 3 months with capital protection in mind.
It's a real headache.
I am sure you have extra cash now because you have "said" you are selling in the market slowly.(Sorry, if I am wrong.)
I have sold about 30 % of my portfolio.
So where to park the money with better return than the BANKS and yet capital safety.
Any sound opinion will be appreciated.
Lawrence
Fisherman replied:
ReplyDeletehttp://createwealth8888.blogspot.com/2010/10/my-money-works-harder-for-me-4.html