Google Chrome and Microsoft Edge are in the process of rolling out a version update which is impacting some nabtrade functionality, including buy/sell buttons and certain page loads. If you are a Chrome or Edge user and are experiencing these problems, please visit the following FAQ to review the steps that need to be taken to prevent this issue from occurring.
Even renowned investors like Warren Buffet swear by holding onto cash for a rainy day. But how much cash do you need and do you in fact have excess cash that could be working harder for you?
We all need cash. But stashing all of your cash is not necessarily a long-term solution to protecting your wealth, especially when inflation rises. When prices go up even at a steady pace over the long term, the value of your cash declines. The result? Reduced spending power and net wealth.
Saving your cash and investing in ETFs play different roles in an investment strategy. Investors sometimes advocate for keeping cash on hand; however it is only through investments that you have the opportunity to potentially make your cash work harder for you. ETFs are a great low cost, transparent and flexible investment tool.
One way to better protect your cash and make it work harder for you is to segment it. Think about categorizing your cash into the minimum you project you need for the below periods of time:
Longer-term segments allow you to explore putting cash into different savings or investments with appropriate levels of risk. Assets like high rated bonds and government securities that may be relatively low risk are not always easily available to regular investors, but ETFs can provide that access and is one of the avenues you can look into, when thinking of investing excess cash.
The purchasing power of cash can decrease as inflation eats away at it over time. What’s the difference in yield for cash compared to short duration bond ETFs.
As you’ll see in the table below, short duration bond ETFs, have the potential to add more income to meet your investment goals.
1. Monetary Authority of Singapore, as of Jun 2019. Figures refer to average rates compiled from that quoted by 10 leading banks and finance companies.
2. Based on 1-yr total return %. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
You’ll always need cash in hand, but categorizing your cash can help identify what excess cash you have to invest with, opening up new possibilities. Investing your cash into ETFs can help grow your wealth at the same time, while giving you the option of flexible trading and immediate visibility. Investing in ETFs may allow you to have the potential to meet your short or long-term financial goals quicker than if you were to hold onto cold hard cash.
The nabtrade service is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities). WealthHub Securities is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited ABN 12 004 044 937 AFSL No. 230686 (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. WealthHub Securities is not an authorised deposit-taking institution, and its obligations do not represent deposits or liabilities of NAB.
This material contains general advice only and has been prepared without considering your objectives, financial circumstances or needs. Before acting on any general advice or information in this material, you should consider the appropriateness of the general advice or information with regard to your objectives, financial circumstances or needs and you should obtain and consider the relevant Product Disclosure Statement, Terms and Conditions, Financial Services Guide and any other disclosure document. Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable.
© National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.
BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523 (BIMAL)
Information provided on this site in respect of BIMAL products comprises general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide on its website for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction.
No part of this material may be reproduced or distributed in any manner without the prior written permission of BIMAL.
© 2022 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES and the stylised i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.