Another Investment Thread

[Jweb_@@]

I'm looking to start 2 investments for 2 kids which will be used to either supplement varsity fees, buy a student car, or maybe used as a deposit for a flat. The 1st investment will be cashed in after 10 years, and the 2nd in 18 years.

To start off with I'll be contributing 200 per month for each investment. I need the investment to be flexible enough so that there are no penalties if I skip a month. It also needs to allow multiple deposits, as I will most probably not be the only person contributing to it.

Any ideas or recommendations. Thanks in advance.

 

[supersunbird]

I'm trying to think of something that's fine with R200pm, there is a product out there but my brain just not recalling which product it is. Most ETFs start at R300pm and unit trusts often at R500pm.

Its a good idea overall.

 

[Jweb_@@]

I'm trying to think of something that's fine with R200pm, there is a product out there but my brain just not recalling which product it is. Most ETFs start at R300pm and unit trusts often at R500pm.

Its a good idea overall.

Thanks. Would I need to consult a broker, or would I be able to buy direct?

 

[supersunbird]

Ok, here's something;

http://www.1life.co.za/our-products/investment/

Probably have to choose the Sanlam Managed Aggressive Fund of Funds option for adequate growth. They have a management fee of 2.5% per year, which is a bit high. I'm sure there are some other products out there.

Article about someone who did this:
http://mg.co.za/article/2010-05-27-the-secret-investment-recipe

 

[supersunbird]

Thanks. Would I need to consult a broker, or would I be able to buy direct?

Yes you can.

Oh, here is something better:

Discussed under last part of article under Investment costs are declining:

http://www.moneyweb.co.za/moneyweb-...investment-structures?sn=2009+Detail+no+image

Here is the site you can get it at:

http://www.sanlam.co.za/wps/wcm/connect/individuals/Sanlam/For+Individuals/Unit+Trusts/
R200pm and any lumpsums must be at least R5000 it seems.

 

[Jweb_@@]

Thanks a mil. This is really helpful.

 

[supersunbird]

Thanks a mil. This is really helpful.

Pleasure.

An idea I just had, maybe the one investment can be the SIM Equally Weighted Top40 Index Fund and the other the Sanlam Global Equity Fund . Then in year 10 you withdraw half of each fund (or whatever ratio you think is good) for the 1st child, and the rest when the 2nd child is 18. Gives you diversification outside of the SA market. Alternate any lump sum payments between the 2 or put all of them into the SIM Equally Weighted Top40 Index Fund. Just an option for you to consider.

 

[Jweb_@@]

Will definitely consider it.