Another investment thread...

[Priapus]

Hypothetically, if you had let’s say 100k in a savings account and were able to contribute 25k a month to it.
How would you invest it better than just leaving it in a normal savings account?

I hear FNBs money market accounts are decent. But is there anything better than that?
The only restriction is that you should be able to access the money in a reasonable time if an emergency arises.

the other suggestion I hear often is dumping it into your bond which saves a lot on interest already.
Probably better than a savings account and still have access to it should you need.

 

[spiff]

Hypothetically, if you had let’s say 100k in a savings account and were able to contribute 25k a month to it.
How would you invest it better than just leaving it in a normal savings account?

I hear FNBs money market accounts are decent. But is there anything better than that?
The only restriction is that you should be able to access the money in a reasonable time if an emergency arises.

the other suggestion I hear often is dumping it into your bond which saves a lot on interest already.
Probably better than a savings account and still have access to it should you need.

Pay off the bond first

 

[3WA]

Bond is best because it’s tax free, instantly available, and at a good interest rate.

Otherwise whatever 32-day notice account or money market fund takes your fancy.

 

[cguy]

^ apart from the above, it’s also lower risk (not as low as property in other countries, but still probably less than the market).

 

[Priapus]

Thanks gents. Will go that route then.

 

[cr@zydude]

Thanks gents. Will go that route then.

What the guys above said, unless you're one of the few people with a bond at below 10%. If that's the case, take the first 100k to Tyme and earn 10% then plow the 25k per month into your bond.

 

[Priapus]

What the guys above said, unless you're one of the few people with a bond at below 10%. If that's the case, take the first 100k to Tyme and earn 10% then plow the 25k per month into your bond.

My bond is below 10%. But not by a whole lot.

Is Tyme not too risky?

 

[zerocool2009]

My bond is below 10%. But not by a whole lot.

Is Tyme not too risky?

The owner of Tyme just bought the Blue Bulls ! L O L ..... Any other bank would say its risky. Look what the first comments of capitec was (the same story). Think SA learned from the VBS saga

 

[cr@zydude]

My bond is below 10%. But not by a whole lot.

Is Tyme not too risky?

Lucky you.

I'm happy with them. They've had 100k of mine for about a year now.

 

[mr_norris]

There is a whole thread that's fairly new about people discussing whether or not to use your bond. I recommend reading it.

Otherwise look at:

* Maximizing your RA for the tax benefits
* Maximizing your TFSA. This is also highly tax efficient
* TymeBank and their goal saves. It's 9% (and some change if you want to get technical) PA. I use Tymebank to hold my emergency fund. You only get 10% if you choose to cash out and leave in for another ten days

 

[roskii]

Emergency fund in FNB Money Maximiser account (or TymeBank if you willing)
then bond
then maxing RA
then maxing TFSA (recommend EasyEquities)

#opinion

 

[cr@zydude]

There is a whole thread that's fairly new about people discussing whether or not to use your bond. I recommend reading it.

Otherwise look at:

* Maximizing your RA for the tax benefits
* Maximizing your TFSA. This is also highly tax efficient
* TymeBank and their goal saves. It's 9% (and some change if you want to get technical) PA. I use Tymebank to hold my emergency fund. You only get 10% if you choose to cash out and leave in for another ten days

Tyme is technically always below 10%, but tends towards 10%. The 10 day aspect is true, but think that for the OP needs 10 days shouldn't be an issue.

 

[SauRoNZA]

Emergency fund in FNB Money Maximiser account (or TymeBank if you willing)
then bond
then maxing RA
then maxing TFSA (recommend EasyEquities)

#opinion

Why not have the emergency fund in the bond and score the interest while having instant access.

I would only do the above if I didn’t have a bond.

 

[roskii]

Why not have the emergency fund in the bond and score the interest while having instant access.

I would only do the above if I didn’t have a bond.

Good idea

 

[Snyper564]

Why not have the emergency fund in the bond and score the interest while having instant access.

I would only do the above if I didn’t have a bond.

Was just about to say the same. All my additional money lives in the bond or as I like to call it my "savings account" I can pull any amount at a moments notice and knock the interest at the same time.

 

[SauRoNZA]

Was just about to say the same. All my additional money lives in the bond or as I like to call it my "savings account" I can pull any amount at a moments notice and knock the interest at the same time.

Yeah I have four or so “savings accounts” inside my bond that I track via a spreadsheet.

That’s the way anything will be saved until the bond doesn’t exist any more.

 

[Priapus]

Yeah, it seems the real benefit would be to have any 'savings' sitting in the bond. I'll take a look at this in the new year; as the bond registration only happens in a couple weeks time (Hopefully)

 

[Gaz{M}]

Answer this: Would you take money out of your access bond, to invest in other things? No?

Then why wouldn't you pay it off first before any other investment activities.

Playing arbitrary games with interest rates and arbitrage is silly. You are forgetting to factor risk into your investment decisions.

 

[Snyper564]

Answer this: Would you take money out of your access bond, to invest in other things? No?

Then why wouldn't you pay it off first before any other investment activities.

Playing arbitrary games with interest rates and arbitrage is silly. You are forgetting to factor risk into your investment decisions.

Well said! The bond is guaranteed and tax free interest savings as well