Monday, January 16, 2012

What Should I Do With My Annual Bonus?

The Sunday newspaper carried an article on how people were intending to spend their annual bonuses.  While most have or were planning to spend it on holidays, clothes and IT gadgets, others were thinking about saving or investing a part of it.

The article got me thinking on what I ought to do with my annual bonus.  Currently, it is seating in the bank and I realised that it is not being put to good use.  One idea that I have been toying with is to pay off my car loan which is still outstanding.  The idea of being a little closer to being debt free is just so appealing right now.  By paying off my car loan, I will just be left with my housing mortgage loan.

Another idea will be to invest that sum of money in a mixture of REITs as well as monthly dividend stocks like Gamco Global Gold & Natural Resources Trust (GGN).  This will serve as a passive income flow for me.

For REITs, I am choosing between Suntec REIT, Sabana REIT and LMIR Trust.

Any ideas or suggestions from anyone?


  1. My advice is to pay off that car loan. It's a relatively expensive loan (should be about 4.5%) so unless you can get a higher consistent yield on that money perhaps it's best to pay it off.

    Say even if you get 6-7% the spread is only about 1-2%.

  2. Monthly cash flow from selling covered options is deemed like stock dividends; then we can remove the word "speculation" from investment dictionary.

  3. Set aside a small sum to pamper yourself and your family. The sight of seeing a smile on your love one is priceless.

  4. Your bonus can pay off your car loan fully? Wow


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