(23-07-2012, 08:42 AM)KopiKat Wrote: [ -> ]What I was trying to say is, the rich doesn't necessarily get richer just because they have access to a lot more other choices of investment products. Same as the rest, they still have to do their due diligence as many of these are a lot more complex! The other interesting thing is, their decision to invest / not invest may be based on just one page of useless (to me) facts and figures. I was asked by another friend to take a look at an investment product recommended by a Private Banker - a request for more detailed info appears hard to get and the attitude was something like, 'if you need to ask, then it's not suitable for you. There're many others who're eagerly waiting to buy more of it..' My advice was to give it a miss... Phew! Was afraid I may have to go thro' a few hundred pages of financial gibberish which I doubt I can even understand...
But, again, you are right when it comes to Corporate Bonds. For these somewhat 'safer' investments, they have a lot more choices than other retail investors.
But, having a $1Mil may not necessarily qualify you, IIRC (I asked before) you need to commit at least the whole $1Mil for investment with the bank, spread over a few other investments.
I would sincerely ask your friend to request for a change of banker or banks if I am in your position. No point of sticking around with a "if you don't buy from me, others will and no questions to be asked" banker.
That's really bringing down the bank and other bankers reputation.
Yes, you are right that even for people with higher networth, they might not be investing savvy. Its a strange world but many out there are too concentrating on their biz that they couldn't be bothered to keep track of their investments portfolios.
Beside Corp bonds, there exist statutory bonds that requires a min 250k denomination. Personally, I feel bonds are a required and appropriately large component of one's portfolio till the deleveraging of the Great Financial Crisis blows over years down the road.
Sadly, many retail investors are unable to get such bonds unless smaller denomination are available or thru Singapore Govt Bonds. I do think SG bonds or bond funds, though lower yield, is better than a REIT that will give one heartache in this new world of ours.
One of the most risk-free bond fund I would suggest to retail investors is this UNITED SINGAPORE BOND FUND.
It may be accessed info thru here.
http://www.fundsupermart.com/main/fundin...ber=UBSGBD
The returns are nothing to shout about, You guys might even throw durians on me screaming WTF should I buy something given such a low returns of 3-4% over 5 yrs?
Well.. peace of mind bro, peace of mind.
PS to all retail investors: Do take note of Annual Mgt fees, annual expense ratio and maybe sales charges if one is to purchase from banks.
And I am not a certified financial adviser, so please take my words with a pinch of salt.
(23-07-2012, 11:02 AM)Temperament Wrote: [ -> ]For all those who had somehow escaped the ravage of CDO products, we thank GOD or our "Lucky Star". i managed to escape by keeping up reading news about these products. i found almost all the news not in favour of investing in this products. So i gave CDO a wide berth.
At first when i read the brochures of these CDO, i were of course attracted to the capital guarantee parts.
(In fact most banks were stressing on this clause; smoke & mirror clause that layman found it hard to understand)
i found i don't completely understand this guarantee clause; so i did not buy.
i am sure many layman got trapped by this clause: "Capital guarantee what, there is nothing to worry"
So the moral of my story is that from CDO fiasco, i learn the English word "Guarantee" actually can have many meanings.
Under certain usage like in CDO brochures, "Guarantee means actually guarantee you have no guarantee at all due to all the attached conditions to the word guarantee.
So you see, i am now very, very careful whenever i come across the English word "guarantee".
i really learned now how to understand the word "Guarantee".
Have you?
Once again, we all thank GOD or our "Lucky Star".
i almost persuaded by some "bankers" to invest in ELN but i found that if the contract is executed, the price of the stock is not attractive to me. So i don't buy any. i like to ask is it possible for the banks structure this "ELN" that the "strike price" of the stock is attractive to me. So far they can't or i come across one. In other words, is there a possible condition for the Bank's ELN's strike price to be attractive to me. If possible, i can wait.
Of course they (Banks) do. Pow Chiat products for them what. (Reference to D.O.G.'s article above) In fact only not many months ago, some bankers still try to persuade me to buy ELN. Of course i told them the strike price of the stock was not attractive to me though the interest payment may be acceptable. Sometimes the interest payment is not attractive too for some ELN contract. Until now they have not asked me again. They may try some other "funny products" though. i have to be very discerning.
I still recall that one of the hidden clause with the Lehman Mini-bonds was that if one bank fails, the note is taken as default for ALL banks.
That was why many people was shocked that even though it was only Lehman and Bear Stearns that went bankrupt, the product is considered as zero dollars. Wow... its really pretty scary and wicked if you are to think about it.