Investing 25K per year from Malaysia
Discussion
ETA: Investing, not investigating!
I'm moving to Malaysia in August. Whilst there I will be looking to save the equivalent of £25,000 per year, rising to 35/40K after the first year. On returning to the UK the money will be used to purchase a house. I'd like little risk and the money needs to be accessible with 6 months notice without incurring any penalties. I will be paid in MYR.
Any help or advice is much appreciated.
Tom
I'm moving to Malaysia in August. Whilst there I will be looking to save the equivalent of £25,000 per year, rising to 35/40K after the first year. On returning to the UK the money will be used to purchase a house. I'd like little risk and the money needs to be accessible with 6 months notice without incurring any penalties. I will be paid in MYR.
Any help or advice is much appreciated.
Tom
Assuming you know approximately when you're returning, so you can time the maturity dates right, then the lowest risk approach is to swap to GBP when you receive the cash, then put it in to UK build soc / bank fixed term bonds and apply to receive interest gross, or do it via the channel islands. This will get you 2% to 3% at the moment.
Higher returns can be achieved for a higher risk profile.
Higher returns can be achieved for a higher risk profile.
Newc said:
Assuming you know approximately when you're returning, so you can time the maturity dates right, then the lowest risk approach is to swap to GBP when you receive the cash, then put it in to UK build soc / bank fixed term bonds and apply to receive interest gross, or do it via the channel islands. This will get you 2% to 3% at the moment.
Higher returns can be achieved for a higher risk profile.
I was hoping there would be a way of achieving a slightly higher rate of return? UK interest rates are so crap I (perhaps wrongly) assumed that investing elsewhere would be better?Higher returns can be achieved for a higher risk profile.
Currency risk is going to cloud matters.
Plus counterparty risks with foreign entities if you are looking to invest with them etc.
That being said, if it was me, Id be looking at an offshore account to house the savings in a good jurisdiction and investing in some solid global stocks and bonds. I wouldn't put anything into the UK (except a bullet). Also the offshore account might work well for you in the future. Don't forget you will become a non resident for tax purposes.
Plus counterparty risks with foreign entities if you are looking to invest with them etc.
That being said, if it was me, Id be looking at an offshore account to house the savings in a good jurisdiction and investing in some solid global stocks and bonds. I wouldn't put anything into the UK (except a bullet). Also the offshore account might work well for you in the future. Don't forget you will become a non resident for tax purposes.
tom5678 said:
Newc said:
Assuming you know approximately when you're returning, so you can time the maturity dates right, then the lowest risk approach is to swap to GBP when you receive the cash, then put it in to UK build soc / bank fixed term bonds and apply to receive interest gross, or do it via the channel islands. This will get you 2% to 3% at the moment.
Higher returns can be achieved for a higher risk profile.
I was hoping there would be a way of achieving a slightly higher rate of return? UK interest rates are so crap I (perhaps wrongly) assumed that investing elsewhere would be better?Higher returns can be achieved for a higher risk profile.
What's your risk appetite? Would you for instance be happy to invest in something that might lose you 20%?
amokwa said:
Look into UK portfolios that are invested on the Ghanaian stock exchange, good returns at the moment.
That's a hefty bet on cocoa futures 
Maybe 50 /50 Global large cap and Global real Estate.
With six months to go stop contributions and keep on deposit.
Don't get kidnapped.
tom5678 said:
Thanks for your replies.
What return is possible with a potential loss of 20% attached?
Well, -20% or more for a start... What return is possible with a potential loss of 20% attached?
Sorry, not trying to be facetious, but I feel you're coming at this the wrong way. In very broad terms, the risk/returns rise as you move through
- cash accounts
- government bonds
- funds
- index trackers
- single listed stocks and bonds
- simple derivatives
- speculative stocks, eg Falkland oil prospectors
- FX trading
- complex derivatives, eg with an overlaid FX component
- venture capital
- spread betting
So you have to be comfortable with the product (rule #1 - never invest in something you can't explain to your grandmother), and you have to be matched on the timings (index trackers will generally be up over a 5 year period but might well be down in any one 12 month period).
If you have any pointers on preference and timings I'm sure the collective here can then make some suggestions for you to research.
Gassing Station | Finance | Top of Page | What's New | My Stuff