The money thread (investments, banking, etc.)

[RiaX]

Hello i just wanted some real experience from people who have done investing money so i can sift through the lies of the financial advisors because a lot of them push for clients to take investments that yeild a good comission percentage for themselves

so lets keep it confidential and assume the figure of R10 000 for anyone posting here, plus this will make the maths simpler as well.

Which of the investment companies/banks do some of you use and what percentage is offered for a period of time and who do recommend?

Also can I get some pro and cons with fixed rates and liquid rates?

im looking to do some investment for myself and its always best to get a broad view and a variety before doing something of this importance

[Synthesis]

Okay, here's my view. I don't take long term policies or investments because I would estimate 90% of people I know who do, get less out than they put in. In other words, you're better off stuffing cash under your mattress.

I have savings plans at my bank. They offer 6.04% on anything under R10 000. Then over R10 000 this drops to about 4.6%. So watch out for this.
My reason is that it's a fixed saving over 1 year. I know that in 1 year I'll get my money back with that interest. Then I can decide to release it, use it, or re-"invest" it. I stick it back in.

Personally, I would say starting with R10 000 is too little to look at investing. Too risky. Unless you're looking more close to the R100 000 mark, then investing would seem alright to me. But that I have no knowledge of because I am suspicious as previously stated.

[doo_much]

+1 on the suspicion part - too many 'brokers' and 'financial advisors' are too flippen rich.

Which bank is that by the way - that's a good return for <R10k?

[Stuart]

I'm not sure if this is at all helpful, but I use a financial advisor from Vanguard Financial whom I trust quite implicitly. Barry Jamie is the guy from there that I use. That's pretty much all I can say, because he understands my investment portfolio far better than I do.

I also have a money market account with Absa, for what it's worth. But that was created as a very short term investment, so probably not what you're looking for at all.

[Synthesis]

Capitec.

Don't care what anyone says. I love them. It's for my private banking. No hassles, no paperwork and honestly I don't notice bank charges as I did previously. That's the main thing.

[Stuart]

Capitec.

Don't care what anyone says. I love them. It's for my private banking. No hassles, no paperwork and honestly I don't notice bank charges as I did previously. That's the main thing.

That was a little defensive

[doo_much]

Capitec.

Thanks, I'll have a look. Need somewhere to stash my 'slush-fund'.

As for the lack of paperwork. Remember 20/Twenty in the old Saambou days?

[RiaX]

Capitec.

Don't care what anyone says. I love them. It's for my private banking. No hassles, no paperwork and honestly I don't notice bank charges as I did previously. That's the main thing.

Yeah but who is the financial backing for capitec, is it as strong and say old mutal? ... i mean its legend for small accounts but now with big accounts i am a bit suspicious to trust them with the bulk of my fortune

Btw i know 10k is a waste of time we just using 10k so people dont have to divulge such personal things like how much money they got and where it is

btw whats your oke's take on money market?

[PingPong]

You only interested in investing in the cash market or shares and bonds too? Bonds will get you a higher returns than cash but are less liquid. Not sure what kind of risk you are looking to take on (How old are you??) and what your investment time horizon is?

[RiaX]

I want no risks, i worked hard for my money im not interested in a broker going and losing it or should i say sinking it then run away with a profit while im stuck in a hole.

Anyways im not old im turning 24, im trying to to make this into a deposit for a new car or start a housing bond in about 5 years after im done loafing around

and obviously im not using 10k

[PingPong]

Well government bonds are certainly the safest investment, risk free actually. The 5-year government retail bond offers 8% per year or you can buy floating rate at 2.25% above inflation.

Otherwise if you are just wanting to keep it in cash you can probably get a fixed deposit account ranging from 4 to 7,5% depending on the period taken, with any of the major banks.

[RiaX]

i wonder about goverment based investment with all the rogues there

[PingPong]

Lol, it's safer with the government than it is with the banks. Banks can always default, governments can print money (or the central bank which is owned by the government) if all else fails.

[RiaX]

Well you can see what they doing to that BEE trustfund .....

[PingPong]

Which one?

[Sojourn]

Are you talking about 10k once off?
Are you prepared to make monthly contributions?

If it is once off, the best returns are in shares of some flavor, done with sound advice.
Don't plonk it into an account and depend on interest, savings interest on that small amount = matress.

If you are prepared to make monthly payments, my fist question would be, do you have a bond?
If you have a bond, rather spent the monthly Rs you have for this as an addition to your bond each month, in the long long run you will save an astounding percentage on interest.

If your bond is paid up, back to shares, done with sound advice
Once you talk about 100k+ we can talk about different options.

[RiaX]

as i said earlier im not wasting my time with 10k

[DeathStrike]

i have a one month investment account with nedbank. every month it capitalises the interest into the investment. and i add another portion of my salary into the investment as well. i get 4.xx % it may not be much but i know that it is growing every month. IIRC they also offer a 6.xx % for a one year although this was sometime ago.

bank charges? as far as i know there are none.

[RiaX]

i have a one month investment account with nedbank. every month it capitalises the interest into the investment. and i add another portion of my salary into the investment as well. i get 4.xx % it may not be much but i know that it is growing every month. IIRC they also offer a 6.xx % for a one year although this was sometime ago.

bank charges? as far as i know there are none.

there are no bank charges on an investment, however when you cash that out it will be taxed or so im told

[senile]

there are no bank charges on an investment, however when you cash that out it will be taxed or so im told

True, the bank you invest with deduct tax before cashing out

[PingPong]

Yeah, tax-free interest income is limited to R22 300 per year if you are under 65 unfortunately

[RiaX]

Yeah, tax-free interest income is limited to R22 300 per year if you are under 65 unfortunately

no thats inclusive of all your earnings so if you paid working and all your investments come to R22 300/a the reciever wont tax you

[PingPong]

The R22 300 relates to an interest exemption, Section 10 (1) (i) of the South African Tax Act. Anything over that must be included in gross income for tax purposes

[DeathStrike]

ah that's depressing...

so SARS gets a portion of my hard earned cash again if i invest it?

kind of makes the point of investing pointless...

[PingPong]

Only if you are investing like 300k or more. Anything below that and the interest earned will be tax free (generally speaking)