Where do you keep your Savings?

Society Business and Career
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In todays financial climate, how do you look after your savings? Should you just keep them in saving accounts , invest or get a private pension scheme or something else? There are so many things to consider that its confusing. I mean what are the safest options?

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Re: Where do you keep your Savings?

All expert agree for now safest option is to buy Gold.

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Re: Where do you keep your Savings?


i keep my money in my mattress...i sleep on my hard earned money...i can't give it away to unscrupulous banks hehe...my mattress can hold millions...it's NOT nearly filled...but close! ;) hehe

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Re: Where do you keep your Savings?

LOL

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Re: Where do you keep your Savings?

have you bought any gold? or know anyone who buys gold as an investment?

afaik, when you buy gold, you pay upwards of 2% premium over market rate, and when you sell, you get paid anywhere from 60-80% of market rate. sounds like you lose 22% of your principal right away.

gold is at record high prices, and everyone and their grandma is recommending buying gold. sounds a lot like houses and 5 yrs ago.

gold is great as an insurance policy against a lot of things, but calling it an investment is equivalent to gambling if you ask me.

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Re: Where do you keep your Savings?

I agree.....

someone was saying on TV...that...now that gold is very high.....it is going to go down......so it won't be protecting your wealth that much.........

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Re: Where do you keep your Savings?

In my almari :p lol

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Re: Where do you keep your Savings?

I was gonna say mattress also.

B.T.W. Where exactly do you live in Ontario ?

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Re: Where do you keep your Savings?

Haiiiiiiiiiiiiiiiiiiiin?

Kuch samjh nahi aaya!!! Are you guys talking about pure gold? because when we sell that, the price doesnt go down unless the gold price has gone down. So wat r u guys trying to say here. :bummer:

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Re: Where do you keep your Savings?

**really? wow! it’s one of the logical places to hide money :slight_smile: Bollywood stars used to hide money in the false roofs and also tucked away behind dry-walls.

u asking me after knowing that i keep my money in the mattress? hehehe :cb: j/k

btw, i livein Lucknow :slight_smile: gore nawaaboN kaa shahr :slight_smile: are you also in Ontario somewhere?**

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Re: Where do you keep your Savings?

A very dangerous message - all experts do not agree on anything, let alone the fact Gold is now the best option. where were the experts when Gold was at 250 dollars an ounce about 6-7 yrs ago? Gold may have approached bubble territory. As the Q guy stated, Gold may have a role in ones portfolio in terms of asset allocation. But to suggest to people that Gold is best savings at these levels is plain irresponsible.

Always do your own homework folks. Forums such as these can be used for entertainment - but you get what you pay for. And every once in a while, even Mirch provides bad advice.

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Re: Where do you keep your Savings?

Asset allocation is the key. You should probably habe liquid cash in savings or CD account to cover 6 months living expense. Maybe one more year of expense can be put in long term CDs with higher interest. after that, it depends on your tolerance of risk.

Some say 100-age should be the % allocated to bonds, and the rest in stocks or stock funds. So if one is 35, 65% in stocks, 35% in bonds.

Bonds can be made of govt bonds, municipal bonds or Corporate bonds (preferably high quallity).

One should not be moving in and out of ones asset allocation based on the "current market climate". You will tend to buy high and sell low if you do that (unless you are one in a million who can correctly time the market).

Above all, watch for the Q guy - he makes sense (when he wants to!)

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Re: Where do you keep your Savings?

U r right pure Gold price always be the same but Jewelry price always less then its original price when u sell :cobra:

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Re: Where do you keep your Savings?

With present valuations there is more downside than any possible upside. One should be cautious taking positions on precious metals at present prices..

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Re: Where do you keep your Savings?

Could you please translate the highlighted part into english? :)

I know basically we should not put all our eggs into one basket, but like some others I still dont understand what you and Queer are saying about Gold. Isn't buying Gold bars less risky then say buying gold related stocks????

Also lot of desis buy plots of land back home as an investment. With property prices down at the moment, would that make any sense? We were in Islamabad last christmas, and everyone was teling us to buy plots because of apparently good returns. My husband and I were not too sure if its a safe investment so left it. Has anyone got personal experience of this?

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Re: Where do you keep your Savings?

Majority of people have no idea about it. That's why they actually lost money. Also when Gold goes high, it also takes inflation up too. So technically 1$ is not 1$ after inclduing 10% inflation.

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Re: Where do you keep your Savings?

1) First of all, everyone should have an emergency account, it should be liquid enough to get cash in a moments notice. So a checking/savings account is recommended. How much to put in emergency account, well depends but it should be 6 month to 1 year worth of monthly bills.

2) Invest in blue chip companies with proven records of dividends. In Pakistan financial sector is doing quite good.

3) Invest in small business.

Remember only made investments when you have no worries about your kitchen.

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Re: Where do you keep your Savings?

Oh well. I tried.:slight_smile:

No I don’t live in Ontario.

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Re: Where do you keep your Savings?

[quote="MissFreudian"]

Could you please translate the highlighted part into english? :)

I know basically we should not put all our eggs into one basket, but like some others I still dont understand what you and Queer are saying about Gold. Isn't buying Gold bars less risky then say buying gold related stocks???? i AMSAYING GOLD IS AT AN ALL TIME HIGH. SO YOU PAY TOO MUCH FOR IT. I HAVE NO IDEA IF IT WILL KEEP GOING HIGHER. BUT IT IS VERY EXPENSIVE COMPARED TO WHERE IT WAS 6 YEARS AGO. WHAT QUEER SAYS - HE CAN SPEAK FOR HIMSELF - I WONT CONFUSE THE ISSUE

Also lot of desis buy plots of land back home as an investment. With property prices down at the moment, would that make any sense? We were in Islamabad last christmas, and everyone was teling us to buy plots because of apparently good returns. My husband and I were not too sure if its a safe investment so left it. Has anyone got personal experience of this?
I HAVE NO IDEA OF REAL ESTATE PRICES IN PAKISTAN - SO WONT COMMENT
/QUOTE]

Here you go:
**Some say 100-age should be the % allocated to bonds, and the rest in stocks or stock funds. So if one is 35, 65% in stocks, 35% in bonds.

Let us suppose your husband's age is 35 years. 100-35 = 65. So 65% of money (after setting aside 1 year living expense) can be invested in stocks, 35% in bonds.

As an example, say you have Rs 11.2 lakhs worth of total savings. Let us suppose monthly expenses are Rs 10000. So set aside Rs 1.2 lakhs for expenses. So now you have Rs 10 lakhs left.

Take 35% of this = Rs 3.5 lakhs and buy bonds.
Take 65% of this and buy stock funds (focusing on blue chip companies as Firenze suggests). Or Rs 6.5 lakhs
Or out of this 65%, use some money for real estate.

Bonds can be made of govt bonds, municipal bonds or Corporate bonds **(preferably high quallity).

High quality -
government bonds of countries with good rating are high quality - (I have no idea what Pakistan debt rating is)
Bonds issued by blue chip companies with strong balance sheet are also high quality
Low quality example - suppose a company has Rs 100 lakhs cash and owes Rs 1000 lakhs. It has a poor balance sheet. Its debt is low quality.

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Re: Where do you keep your Savings?

aBOVE ALL, KNOW WHAT YOU ARE BUYING, aND IF YOU DONT KNOW WHAT YOU ARE BUYING, KEEP IT SIMPLE. Put it in a bank till you become totally comfortable knowing the Risks and Rewards associated with each investment.