As above, I am heading into a job where, for the first time in a while I will have a fairly large cash surplus each month. Should I just shove into a 32 day call account or are financial advisors worth looking into?
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Are financial advisors worth it?
- Thread starter DrewChan
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Hamster
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Based on that, yes, for you they'll be worth it.
If you're asking that question then you probably need a financial advisor to help alleviate you of your extra money.
Personally I won't go near a financial advisor or investment broken because they often give advice that is not in your best interests but rather their own.
There is so much information on the Internet with regards to investing that there really is no excuse for not reading and educating yourself.
NeonNinja
Neon Resident
And there's no misadvise?
Dumb comment. For every suggestion there is a counter suggestion from someone who has been burned by aforementioned advice.
Not saying I would actually do this. I was thinking of DBXWLD or a company with international exposure to try weather rand fluctuations - I am just a little nervy of putting in too much money
shadow_man
Executive Member
Did you go back to your old sector or did you stick with Linux and get an IT job?
Which is exactly what you need if you want to make an informed decision.
Risk vs reward, investment timeline, market cycles, etc.
A bit of both, I approached a company re: putting me in a junior Linux position, they saw my analysis experience and threw me into a role in there instead with a pay bump.
I'll have the opportunity there to up my Linux/ IT experience
Azbubu
Honorary Master
I thought you were leaving the country soon? When's that happening?
As soon as I can, the company I approached is international. The whole reason I chose them. I don't want to go over the waters with no work
I informed them of my intention when applying. It was risky, thought it'd lose me the job
Hamster
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Well, I'm no financial advisor, but I would suggest you combine DBXWD and MAPPSG (40:60) as a start if you go the do it yourself route.
I use my FA for a unit trust and RA and the other things like income protection etc. Bulk of my investments I do myself with a handful of ETFs.
If you do find one, check that he or she is listed on www.fpi.co.za
What the FA will tell you:
1. Pay of debt
2. Sort out insurance (income protection, life cover etc).
3. Invest
And under invest I'd suggest you build up an emergency fund that can cover 5 or so months of your expenses (7 or 32 day call account) and only then start investing. When you've got that emergency fund, then go see an FA if you need to.
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Thanks for the advice - and taking the time to write all that out
nakedpeanut
Expert Member
Agreed, sound advise.
At the end of the day only you know your appetite for risk and how long you'll be in SA for and whether you'll come back etc..
If you only plan on being here for a year, I would just use a 32 day.
If you plan on being here longer/coming back after x years, I'd make sure to open a Tax free savings account first, as opposed to an "investment" account. I currently have the DBXWD in my TFSA via Easy Equities.
I've been saving (via debit order) since I started working, and have continued even with my new car payments.
I don't see the point in stopping the savings and I've learn't to live without that money so I'm still able to put additional money into the car without issues.
Chevron
Serial breaker of phones
This. Not saying you don't get good ones, but the ones I've seen are just car salesman. They will try sell you what gets them the most commission.
This.
Once you get to step 3, start thinking about long term vs short term. Some investment products you want to leave and not touch for years, while you still need a rainy day fund that's easily accessible.
SauRoNZA
Honorary Master
As with all things you get good ones and you get bad ones.
My previous one was pretty rubbish, my new one has been awesome for the last two years or so.
If you want a referral then give me a shout via PM.
*****
And I'm someone who is very hands-on with my finances to the point where he even asked me before why exactly he is there at all since I manage it so well myself.
My previous one was pretty rubbish, my new one has been awesome for the last two years or so.
If you want a referral then give me a shout via PM.
*****
And I'm someone who is very hands-on with my finances to the point where he even asked me before why exactly he is there at all since I manage it so well myself.
I plan on leaving the country for good after about a year - less if its feasible. Probably for either the UK or Europe. My provident and savings will be for the move and setting my life up.
I will have about R170k in provident and will be able to put away about R140k in the next year.
My main worry is the rand against euro/pound- which I have another thread open about
I have no interest in "growing" it to any great extent but rather just retaining its value in the event of a currency fallout
I will have about R170k in provident and will be able to put away about R140k in the next year.
My main worry is the rand against euro/pound- which I have another thread open about
I have no interest in "growing" it to any great extent but rather just retaining its value in the event of a currency fallout
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I spoke to a financial advisor last year for the first time. I made sure he was fee only (no commission - that's a big conflict of interest). He basically didn't know anything more than I did, and less in some cases. Basically:
- use your tax advantages saving allowances
- for higher expected returns and higher risk buy some ETFs or unit trusts
- for lower expected returns and lower risk put your money into fixed deposits (or CDs or treasury bonds in the US)
- mix the above two to get into your comfort zone
He wanted to draw up an investment plan for me (at a rate of $250/hour for 30 hours). I said, no thanks.
- use your tax advantages saving allowances
- for higher expected returns and higher risk buy some ETFs or unit trusts
- for lower expected returns and lower risk put your money into fixed deposits (or CDs or treasury bonds in the US)
- mix the above two to get into your comfort zone
He wanted to draw up an investment plan for me (at a rate of $250/hour for 30 hours). I said, no thanks.