Isn’t it About Time You Took a Good Look at Your Investments?
Money is tight and anyone looking to make a bit of money in 2009 should be seriously taking a long, hard look at what is the team bonding singapore best place to invest. With last year being such a bloodbath for anyone with a bit of money to spare, perhaps it is time to look at more unorthodox ways of investing money.
After all, below is what would have happened to your money if you had invested it traditionally last year:
There is no such thing as a stable bank savings account, as savers with the Icelandic banks – particularly Icesave – found to their cost at the end of this year. The UK, along with many other governments worldwide, have promised to honour people’s savings if a bank goes bust – but only up to £50,000.
The best rate currently available is the 4% at ING Direct, but only 2% of that is guaranteed and, with interest rates likely to fall, most experts are predicting that 2.5% is likely to be the mean for savers this year.
Return: 2.5% = £102,500
Tax?: 10% on interest in UK = £102,250
Net profit: £2,250
Ooh, you don’t want to do that. The average LOSSES for hedge funds was 18.3% last year. That means that if you had given a hedge fund your £100,000 to look after you would only get back £81,700, and that’s only if the hedge fund allows you to take it out. Most hedge funds still standing are offering investors who ask for redemptions shares in the hedge fund, meaning your earnings will be directly tied to the performance of the hedge fund, no matter how badly it does. And that isn’t good news for 2009. Experts say that hedge funds are likely to suffer worse losses in 2009 as people rush to Government bonds and gold in the wake of a deepening recession.
Then there’s funds like Bernard Madoff’s ‘Ponzi scheme’. Investors with Madoff are likely to get nothing but a high-profile court case for their money.
Return: -18.3% on average = £81,700
Tax?: None likely. Most hedge funds are offshore
Net loss: £19,300
For years investing on the stock markets has been seen as a surefire way to get rich. But in the current downturn that theory has been blown out of the window. In the UK last year, the FTSE 100 – the main index for shares on the London Stock Exchange – fell a whopping 31.3% in 2008. If you had looked at shares abroad, you’re money would not have been much better served and, in some cases, you would have come off much worse. In Shanghai (China) stocks fell 65%, in the US stocks lost 34% of their value, Germany they were down 40.4%, Hong Kong 48.3%, Singapore 49.2%, Tokyo 42.1%, the list goes on and on.
While many are expecting a bounce in stock prices in 2009, we are currently in a bear market, which means that shares are not stable: if they do go up, they are just as likely to come down again. Experts predict that the best strategy for investing in stocks is to invest in short-term bursts as good news filters through and have a direct line to your stockbroker. It’s going to be a bumpy ride in 2009!
Return: -31.3% in UK = £68,700
Tax?: No Capital Gain Tax to be paid on losses
Net loss: £31,300
Long known as one of the safest forms of investment, Bonds are rarely defaulted on because governments don’t go bust – at least they never used to. Iceland, Ireland and Portugal are desperately trying not to buck that trend.
They usually offer a very small return because of their safety, but they are seen as they stand-out place to put your money next year. The best rate on offer is 4.65%, but beware, if stocks rebound that is likely to fall.