Query from Reader – $20K to Invest

By Financial Freedom • July 8, 2012

I don't usually do this but I got a query from a reader recently asking me what safe instruments one could invest in that will provide a better return than fixed deposits (FD). Based on the sketchy information provided, here are the following facts that I got from the very brief email:

$20K cash
"Invest on something safe"
Earn more than FD (which I assume stands for fixed deposits).

Firstly, I think the reader must ask himself whether the $20K in cash is really spare cash. Has he/she set up an emergency fund of 6 months expenditure (or for the kiasu ones - 6 months income). Without questioning too much, I assume that he/she has already set aside money for an emergency fund and this is really SPARE cash to invest.

Secondly, I deduce that the reader is probably risk adverse. Capital protection is probably key to him/her. Stocks with ...

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