I have about 3 million baht extra in my pocket now that I can use to pay off my mortgage. But since the interest rate on my mortgage isn't that steep, I think I may lose an opportunity to make money from my funds if I spend it all on the mortgage. Where should I put the money to make a higher return than the interest I'm paying on my mortgage?
_ MongkolANSWERED BY...Teera Phutrakul, CFP, Chairman, TFPA It's always nice to have 3 million baht lying around looking for a home. First, I would suggest you set up a rainy-day or emergency fund equal to five or six months' worth of living expenses if you do not have one already. Second, you need to analyse your monthly cash flow. If it is positive and quite secure, i.e. you earn more than you spend and your job is fairly secure, then you can look for longer-term investment options than bank deposits.
Mind you, interest rates on fixed deposits are actually not bad nowadays. You can easily get 3-4% per year, depending on different maturities. But if you are looking for something higher, then you have to take more risk and be willing to invest for the longer term. When I say longer term, I mean at least five years or more.
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