Safer low risk investment options in usa

[vasu123]

Hi, i am 30 years old married guy (with single income so far) no kids yet. I am working on h1b visa. i am planning to invest some money in usa with very low risk. i am not looking for long term investments. I am not sure whther i will be here in usa after 3-4 years or not so what are the best investment options to me even if i have to move to india in future or stay in usa. I have zero knowledge on stocks. is there any Fixed Deposit schemes in usa banks? some people told me about vanguard brokerage account. please suggest safest low risk investment options. Thanks.

[RRK]

For 3-4 years of investing, you can't go with stock funds. And Bond funds in USA are risky at this point of time except for short term bond funds. But they dont give you good yield and also carry duration risk at this time.
For shorter duration like you are asking for FCNR deposits are the best bets. I see some indian banks are offering 2% for 1year to 2 years. Take it.

[vasu123]

For 3-4 years of investing, you can't go with stock funds. And Bond funds in USA are risky at this point of time except for short term bond funds. But they dont give you good yield and also carry duration risk at this time.
For shorter duration like you are asking for FCNR deposits are the best bets. I see some indian banks are offering 2% for 1year to 2 years. Take it.

Thanks RRK.

i have NRE savings account but do not have FCNR account. i know we can keep foreign currency(dollars) in FCNR accounts so we can repatriate the same dollars without loosing on exchange rate fluctuation.

Dollar to rupee exchange rate is currently high, do you think it still goes up? i am planning to do NRE fixed deposit, in future if dollar to rupee rate still goes up and i want to repatriate that money then i will loose but if i move back to india then it's good. and there is Tax on NRE FDs interest, i think we can save 5% interest after taxes.

[FB2020]

Thanks RRK.

i have NRE savings account but do not have FCNR account. i know we can keep foreign currency(dollars) in FCNR accounts so we can repatriate the same dollars without loosing on exchange rate fluctuation.

Dollar to rupee exchange rate is currently high, do you think it still goes up? i am planning to do NRE fixed deposit, in future if dollar to rupee rate still goes up and i want to repatriate that money then i will loose but if i move back to india then it's good. and there is Tax on NRE FDs interest, i think we can save 5% interest after taxes.

FCNR is to keep your money in dollars. you won't convert it into Rupees, so no exchange rate risk for repatriation.

[RRK]

Thanks RRK.

i have NRE savings account but do not have FCNR account. i know we can keep foreign currency(dollars) in FCNR accounts so we can repatriate the same dollars without loosing on exchange rate fluctuation.

Dollar to rupee exchange rate is currently high, do you think it still goes up? i am planning to do NRE fixed deposit, in future if dollar to rupee rate still goes up and i want to repatriate that money then i will loose but if i move back to india then it's good. and there is Tax on NRE FDs interest, i think we can save 5% interest after taxes.

Rs. will depreciate against US$. It is given for foreseeable future. Always take that into consideration. You are rewarded with higher interest rate in INR for taking that currency risk.
We see about 10% depreciation of INR against $ every 3 years. We dont know about future but you can see this rate of depreciation for estimate of future returns.

If FCNR is paying 2% and NRE is paying 8% I will take NRE deposit. But if you need money in US$ in one year, keep it in FCNR. Also note FCNR or NRE FD, minimum holding is 1 year. Instead of keeping money in NRE savings account, you may as well keep in zero interest US$ checking account or low int money market account.

I am just answering questions you asked.

All these may be totally irrelevant to your situation. Usually new investors ask questions that should not be their main concern. They forgot to focus on their goals and asset allocation. They focus on returns, which is a by-product.
I am afraid this be your case because I read couple of your other posts and you have no clue where to start.

[okonomi]

...... I read couple of your other posts and you have no clue where to start.

Now...now.. now.. :24:
however, I agree with the underlying gist; for such folks, it is best to keep their lucre in the nearest bank branch to where they live, and in an account that has no withdrawal penalty. Returns are immaterial.

[FB2020]

Now...now.. now.. :24:
however, I agree with the underlying gist; for such folks, it is best to keep their lucre in the nearest bank branch to where they live, and in an account that has no withdrawal penalty. Returns are immaterial.

You could consider money market funds at Vanguard. little better interest and virtually no risk.

[vasu123]

Rs. will depreciate against US$. It is given for foreseeable future. Always take that into consideration. You are rewarded with higher interest rate in INR for taking that currency risk.
We see about 10% depreciation of INR against $ every 3 years. We dont know about future but you can see this rate of depreciation for estimate of future returns.

If FCNR is paying 2% and NRE is paying 8% I will take NRE deposit. But if you need money in US$ in one year, keep it in FCNR. Also note FCNR or NRE FD, minimum holding is 1 year. Instead of keeping money in NRE savings account, you may as well keep in zero interest US$ checking account or low int money market account.

I am just answering questions you asked.

All these may be totally irrelevant to your situation. Usually new investors ask questions that should not be their main concern. They forgot to focus on their goals and asset allocation. They focus on returns, which is a by-product.
I am afraid this be your case because I read couple of your other posts and you have no clue where to start.

i am completely new investor and trying to do my personal finance planning but not sure how to organize things. can i contact you for the advice.

[okonomi]

You could consider money market funds at Vanguard. little better interest and virtually no risk.

Those Vanguard Checks (cheques) leaves are bigger too. Pity that people don't write cheques with fountain pens, and have a good signature in stylistic cursive hand anymore.

[vasu123]

You could consider money market funds at Vanguard. little better interest and virtually no risk.

Vanguard Money Market fund - does it vary with market? and how long can we keep our money and when can we withdraw.