What would you do if you receive $1 million dollar tomorrow?

I read an article about what you should do when you win the lottery. It was written by a well-known financial planner based here in Brisbane.

Now, setting aside the lottery part, just imagine ourselves in that position. What would you do if you were to receive $1 million dollar tomorrow?

If it was me, perhaps I would:

– Leave the money in FD-like accounts until I graduate.
– After graduation, I’d take out some to pay for my CPL/IR and Flight Instructor Rating Course.
– At the same time, acquire some investment properties and also set up a share portfolio.

It sure is nice to daydream huh? 😀

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Back to Basics: Investment Asset Classes

Previously in the Back to Basics series, I have written about:

Today, we shall be perusing at what’s out there and what’s available for us to invest in.

Generally, there are four major asset classes available.

They are:

  1. Equity
  2. Cash/Money Market Securities
  3. Fixed Interest Securities
  4. Property

Here are some explanations and examples of the above-mentioned asset classes:

EQUITY MARKET

In the most simplistic sense, equity is another name for stocks or shares.

Examples that come under this category are:

  • Malaysian stocks
  • Australian company stocks
  • Unit trust funds/managed funds/mutual funds
  • Foreign stocks

CASH/MONEY MARKET

The money market forms a part of the debt market. Generally, securities traded in the money market have maturity periods of less than 12 months. Maturity basically means, your positions will be exited within the time frame.

Examples:

  • Bills of Exchange
    • Bank Bills
    • Treasury Bills
  • Promissory Notes
  • Certificates of Deposit
  • Treasury Notes
  • Unit trust fund or mutual funds dealing with money markets

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