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Take home loan from bank and buy unit trusts!

Saturday, February 4, 2017


For fun and laughter only. LOL.
Hi AK,

I'm new to your site, saw quite a few interesting post from you.. Wonder if I can get some advise and directions to investment...
Have $50k spare cash, now searching for what to invest...

I have a $500k HDB housing loan.
Some financial advisors asked me to switch to bank loan. Instead of using my spare cash to clear my housing loan, look for an investment product which is stable and has a good interest rate which is above the bank loan interest like JPMorgan Funds - Asia Pacific Income and First State Dividend Advantage.

Considering the US situation with the new president, USD is likely to rise with the promising policies to come. Then with the increase value of USD and decreasing value of SGD, would USD linked investments be good. Any recommendation?
I am only talking to myself here.
Hi C,
I don't recommend stuff. I am only talking to myself in my blog.

I like to tell myself not to ask barbers if we need a haircut. Switch from HDB loan to bank loan? These financial advisers work for HDB or for the banks har? Interest rates are going up, then, bank loan interest rates will go up or not?


Financial advisers ask me to buy income focused unit trusts which are likely to be more rewarding than using the money to pay down my mortgage? What are the underlying assets of these unit trusts? Bonds, income generating stocks or REITs, probably. Why they never ask me to invest in these directly har?


I don't know what Donald Trump is going to do to the USA or the US$. I am not very good at speculation. I did a few times before and fell into longkang. Shhh...

Best wishes,
AK

3 comments:

Noosa said...

Haha that haircut analogy always works.
Wont it be better to do some homework and then selectively invest in conters. Unit trust is like meh...

AK71 said...

Hi Noosa,

Now, I really do think I need a haircut. Messy! ;p

Ben said...

I think that $500K HDB Housing loan is too much financial burden to bear. After offsetting this outstanding balance with $50K, the outstanding balance will be $450K.

It will be more prudent to settle all outstanding loan before proceeding to focus on the investment.

Ben

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