Nom Chompsky
High Tory
Ah I see - so the Satrix Top 40 basically tracks the Top 40 companies on the JSE? I found this report quite interesting, although I'm sure the finance gurus on this forum might have something to say about the study:
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100k what would you do with it?
- Thread starter killadoob
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Ah I see - so the Satrix Top 40 basically tracks the Top 40 companies on the JSE? I found this report quite interesting, although I'm sure the finance gurus on this forum might have something to say about the study:
Ou grote
Honorary Master
Why do people say pay off this and pay off that and put the rest in your bond? Why don't they say, invest the money in something that will generate you a monthly income and then use that income to pay off the debt. That way your initial capital will not disappear but your debt will. The minute you put that capital into your bond, it's gone. Yes you will pay off your house faster and have less debt and that is great, but you won't have your initial capital either. I had a very rich friend and he never ever paid of debt with his money. He always used his money to invest or buy-and-sell and then used the profits to pay off his debt. He died a very rich man. Had he paid his startup money R50 000 into his bond, he would have died a poor man.
Paying off your debt and then throwing the rest into your bond is definately not goijng to grow your pension fund. Yes you will have more to spend per month, but do you have the discipline to save that extra bit that you pay less per month and how long will it take you to get to your initial capital amount? It will take years if you ever get their. The cost of living is rising faster than what you will be able to save, so in 5 years time, you will be where you are today. You will have taken out another bond on your house to keep up with the cost of living and be back at square one.
You must use your capital to generate income and I am not talking about growth, I am talking about monthly income to supplement your cashflow. That is the only way. A rich man is somebody that can stay in bed everyday and the income from his investments pay his bills every month without him lifting a finger!
Paying off your debt and then throwing the rest into your bond is definately not goijng to grow your pension fund. Yes you will have more to spend per month, but do you have the discipline to save that extra bit that you pay less per month and how long will it take you to get to your initial capital amount? It will take years if you ever get their. The cost of living is rising faster than what you will be able to save, so in 5 years time, you will be where you are today. You will have taken out another bond on your house to keep up with the cost of living and be back at square one.
You must use your capital to generate income and I am not talking about growth, I am talking about monthly income to supplement your cashflow. That is the only way. A rich man is somebody that can stay in bed everyday and the income from his investments pay his bills every month without him lifting a finger!
Why do people say pay off this and pay off that and put the rest in your bond? Why don't they say, invest the money in something that will generate you a monthly income and then use that income to pay off the debt. That way your initial capital will not disappear but your debt will. The minute you put that capital into your bond, it's gone. Yes you will pay off your house faster and have less debt and that is great, but you won't have your initial capital either. I had a very rich friend and he never ever paid of debt with his money. He always used his money to invest or buy-and-sell and then used the profits to pay off his debt. He died a very rich man. Had he paid his startup money R50 000 into his bond, he would have died a poor man.
Paying off your debt and then throwing the rest into your bond is definately not goijng to grow your pension fund. Yes you will have more to spend per month, but do you have the discipline to save that extra bit that you pay less per month and how long will it take you to get to your initial capital amount? It will take years if you ever get their. The cost of living is rising faster than what you will be able to save, so in 5 years time, you will be where you are today. You will have taken out another bond on your house to keep up with the cost of living and be back at square one.
You must use your capital to generate income and I am not talking about growth, I am talking about monthly income to supplement your cashflow. That is the only way. A rich man is somebody that can stay in bed everyday and the income from his investments pay his bills every month without him lifting a finger!
Paying off your debt and then throwing the rest into your bond is definately not goijng to grow your pension fund. Yes you will have more to spend per month, but do you have the discipline to save that extra bit that you pay less per month and how long will it take you to get to your initial capital amount? It will take years if you ever get their. The cost of living is rising faster than what you will be able to save, so in 5 years time, you will be where you are today. You will have taken out another bond on your house to keep up with the cost of living and be back at square one.
You must use your capital to generate income and I am not talking about growth, I am talking about monthly income to supplement your cashflow. That is the only way. A rich man is somebody that can stay in bed everyday and the income from his investments pay his bills every month without him lifting a finger!
LancelotSA
Banned
As stated by others the Satrix 40 merely tracks the top 40 shares on the JSE. Many investment companies have funds that do exactly the same thing but they are branded differently. The person quoted there has specifically used a five year period. I could make the assumption that he has done this to suit his argument. It would be interesting to compare those same funds over 1, 3 and 10 years. The only given is that the same fund is not going to remain the top performer forever. Today's winner usually ends up as tomorrow's loser.
Freeusnow
Well-Known Member
My carpenter reckons he will retire if he has R100k in the bank... perceptions, perceptions... depends which side of the fence you are on.
Ou grote
Honorary Master
In summary: Your friend had the know-how and some luck, not everybody has that.
Freeusnow
Well-Known Member
Start a money lending business... with high interest rates plus a visit from the henchmen as an incentive to pay the money back.
blunomore
Honorary Master
Huh ?
Did you not read the 2094860249802948029486 posts before yours on this thread?
It is pretty clear that everyone has a different opinion on where (and in what) to invest one's money, should you choose to do so. The one says SATRIX , the other one says this and another one says that.
There is no point in berating us, but not giving firm guidance on possible investments (which guidance, by the way, is not expected, because everyone's situation is different and there is no one-size-fits-all solution)
Huh ?
Did you not read the 2094860249802948029486 posts before yours on this thread?
It is pretty clear that everyone has a different opinion on where (and in what) to invest one's money, should you choose to do so. The one says SATRIX , the other one says this and another one says that.
There is no point in berating us, but not giving firm guidance on possible investments (which guidance, by the way, is not expected, because everyone's situation is different and there is no one-size-fits-all solution)
Exactly, each person talks from their point of view (i.e. their "knowledge" and their perceived level of investment&risk). The advice is all very subjective.
guest2013-1
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If you want to turn that R100k into R300k, I have a very high risk way of doing so which COULD yield even way more than that, even several million...
Yes... that's right folks. Play R100k worth of lotto... own numbers (not that pre-generated ****) and try to have as many combinations in there possible (seeing as it's going to take quite a few million just to play ALL of the combinations)
Your chances are definitely increased with a R100k bank behind you and if you win even the smaller amounts, it would add up to more than the R300k you want to make.
High risk, High reward
Yes... that's right folks. Play R100k worth of lotto... own numbers (not that pre-generated ****) and try to have as many combinations in there possible (seeing as it's going to take quite a few million just to play ALL of the combinations)
Your chances are definitely increased with a R100k bank behind you and if you win even the smaller amounts, it would add up to more than the R300k you want to make.
High risk, High reward
davemc
Executive Member
25K on black in roulette.
Loose
50k on black.
Loose
50k on black.
Loose.
Dammit, bad investment. :-(
If you get Win, start again until you hit 300K.
Loose
50k on black.
Loose
50k on black.
Loose.
Dammit, bad investment. :-(
If you get Win, start again until you hit 300K.
guest2013-1
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lol, yea there's a reason why casino's (offline, not those online) have the outside bet at a minimum of 5x the minimum bet on the table... it's so people can't do the "bet on black/double the bet till it hits" thing. Because it can get very dicey very quickly and in the end, after a bet of several thousand, you walk away R25 richer... lol
If you want to go that route, just get one of those computers that costs like 500 euro and has an ear piece/hidden way for 2 people to (one is the spotter, one places the bets) try and cheat the system. I still reckon my way is just as risky as investing your money in a high risk stock market but MORE than likely to have better returns...
Nom Chompsky
High Tory
Assuming a combination is R2.50 per line, he can buy 40 000 combinations
He has a 40000/14 million (I think that is number of combinations - my factorial knowledge is a bit rusty) = 0.002 ~ 0.2% of hitting the jackpot. Not bad
He has a 40000/14 million (I think that is number of combinations - my factorial knowledge is a bit rusty) = 0.002 ~ 0.2% of hitting the jackpot. Not bad
Because in order for your approach to work the after tax return/income needs to at least match the interest rate on whatever debt you have. Most people simply lack the knowhow, skill or willpower to achieve that - especially when your talking high interest debt like credit cards.
Um... No it's correct
No.
Take on R400k debt and buy a R500k property
At the end his debt will be less and the property should be worth more. because of the rental paying the bond repayments
When you sell the property, you should have more than R100k after paying the debt.
Called Gearing in financial circles.
Much less risk than most other suggestions.
Ou grote
Honorary Master
Depends when you buy. My flat I got 3 years ago, and I can only sell it for about 5% more.
There are other fees to consider as well, like rates, maintenance of the property, transfer fees, bond registration costs etc, etc.
I'm not saying that it will definately happen... just much more likely than than from all the other suggestions