[pinko]

I know that this question comes up once in a while, and it might be difficult to answer in a thread, but:

I will have 1 million bucks left after buying my new house, and I can save an additional 25,000 a month.

Do you have any tip on how to invest the money?

I don't want to buy funds, and some quick visits to banks a short time ago showed me that all they want is to sell their own funds, so I don't think I will get much good advise out of further visits to banks.

I won't need the money for 5 years or so (so that's my time horizon for those interested), and I don't want to take too many risks.

[via]

May be you can consider invest in properties. Purchase a small flat, renovate it then rent it out. That way you can collect rent every month and after a certain number of years you can sell it off.

BTW every investment involves risk.

[wongkwongyee]

Yo, dude, I am afraid that your tread throwing with that exact amount may, first of all, gain you a butch of "neverknow before-buddy" attempt to you.
Anyway, did you try those private banks who can probably can tailor-made an investment product for you?

[Lammarite]

Originally Posted by wongkwongyee

Yo, dude, I am afraid that your tread throwing with that exact amount may, first of all, gain you a butch of "neverknow before-buddy" attempt to you.

Exactly what I was thinking!

[pinko]

Thanks.

Re property: I just borrowed for a house where I am living it. It was a nightmare, though I guess the next purchase is going to be easier because I know the process now. In any case, I believe that the prices of properties will go down in the next couple of years, so it's a bit of a risky investment. Also, I heard of people who own properties and their tenants don't pay + destroy everything in the house. This is too much hassle for me! Thanks anyway!!

Re small bank: Can you recommend one such bank? I did call UBS, and they said they start with 1 million US$! Still some time before I can have this! I wonder if 1 million HK$ is enough to have any _professional_ advise. Usually I can only talk to "financial advisers" who spend 99% of their working day opening the door of the bank.

[pinko]

Originally Posted by wongkwongyee

Yo, dude, I am afraid that your tread throwing with that exact amount may, first of all, gain you a butch of "neverknow before-buddy" attempt to you.

Sorry, I don't get it.

[KnowItAll]

Not advice - but a comment.

I'd avoid banks like UBS. They've not exactly shown any signs of intelligence with the latest sub prime mess - which someone has to pay for and guess who that will be.

[Sleuth]

You have ruled out funds, property and the bigger banks. That seems to leave stocks and bonds? Stocks on a 5 year horizon seems to be a risk.
Down to bonds? And money-markets?

[Oldtimer]

Risk free USA treasury 4%
AAA commercial bonds 5%
In my opinion, shares of HSBC & Hang Seng Bank may give you better yield in 5 years.
The dividend is more than 5% and normally increases every year.
Plus the chances of prices going up over the period of 5 years are quite high.
both shares are liquid and can be sold anytime.
cost of buying only 0.25%

[pinko]

I would consider an index fund, because of the lower fees. Last time I checked Hang Seng had European and Chinese (?) index funds with fees of only 1%. I wouldn't buy a fund if I had to pay 5% fees. Anyway managed funds ALWAYS underperform the index, so...

I don't rule out larger banks, it's just that the advise I have been given so far in these places has been "we have this fund we would recommend you to buy"...

Any bonds you would recommend?

Any additional share apart from Hang Seng and HSBC?

Thanks a lot.