Best 5 year investment

[Priapus]

I hate this super frugal mindset/trend that is doing the rounds these days. By this logic we should resort to only drinking water and eating maize products because nice food is a waste of money and so is an internet connection (read a book, stop wasting money on Netflix and DSTV)

What's the point of working and saving if you can't enjoy your money?


EDIT: Also, if you can save on the interest a new car will cost you why wouldn't you?

Completely agree with this. Life is too short. If you have your retirement sorted, then why the **** not?

 

[Acajou]

Thanks Hamster, definitely going to take a look at those options

 

[SauRoNZA]

? It needs to be something I can contribute a variable amount to monthly, so fixed deposits and such are out.

Fixed deposit is a bit of a loose term here.

Normally the fixed refers to the ability to pull the money out immediately, not necessarily that the deposit itself is fixed.

 

[SauRoNZA]

If he buys it cash, he can get a much better price on the vehicle as you have a better negotiating platform, whereas if he financed it, the dealership in question has to wait for the money to be paid out/subject to bank costs and fees etc.

I disagree.

Dealerships want you to take a finance option. It puts more money in their pocket and they are guaranteed to get their money just as quickly these days so cash hardly benefits them from a time perspective.

Not to mention they tend to get people to add stuff more easily when doing a finance deal.

If the option is to sell the same car to someone cash and discount them or finance the car and make more money they’ll opt for the latter.

 

[silkenphoenixx]

If you'd put r1k per month into bitcoin in the last 5 years you'd probably have more than enough for a lambo or 2.

Or you could have enough for a plastic Lambo from Takealot. Crypto is very volatile, who knows where it will be in 5 years.

I hate this super frugal mindset/trend that is doing the rounds these days. By this logic we should resort to only drinking water and eating maize products because nice food is a waste of money and so is an internet connection (read a book, stop wasting money on Netflix and DSTV)

What's the point of working and saving if you can't enjoy your money?

EDIT: Also, if you can save on the interest a new car will cost you why wouldn't you?

Completely agree with this. Life is too short. If you have your retirement sorted, then why the **** not?

The idea is that you can enjoy more if you spend wisely. Frugality doesn't mean punishing yourself, it means optimising your spending. IMO a new car is silly, buy a 1-year-old car and get basically the same thing while the other guy pays the premium. You can use the money that you saved to go on an overseas holiday. How is that enjoying yourself less?

Fixed deposit is a bit of a loose term here.

Normally the fixed refers to the ability to pull the money out immediately, not necessarily that the deposit itself is fixed.

Some banks (FNB and Capitec certainly do this) have an option that is completely fixed, and one that you can do additional deposits into, and the latter usually has a lower interest rate.

My 2c: Sygnia's Skeleton 70 would be a good idea, you can do a fixed deposit from R500 with them. Or ETFs, that's how I personally keep my discretionary savings. Mine are mostly rand-based offshore feeder funds, and the rand is strong right now so it's a good time to start buying. But doing that takes a bit more paying attention to the market than something like Sygnia's Skeleton 70 or MAPPSG.

 

[Athos]

Coronation Top 20 Fund. https://www.coronation.com/globalassets/asset-library/monthly-fact-sheets/2017/november/2017-november-top-20-fund.pdf

 

[backstreetboy]

Coronation Top 20 Fund. https://www.coronation.com/globalassets/asset-library/monthly-fact-sheets/2017/november/2017-november-top-20-fund.pdf

TOP 10 HOLDINGS

Steinhoff International H NV 6.2% :crylaugh:

 

[Barbarian Conan]

I disagree.

Dealerships want you to take a finance option. It puts more money in their pocket and they are guaranteed to get their money just as quickly these days so cash hardly benefits them from a time perspective.

Not to mention they tend to get people to add stuff more easily when doing a finance deal.

If the option is to sell the same car to someone cash and discount them or finance the car and make more money they’ll opt for the latter.

+1
They definitely get kickbacks (or "commission") from the finance houses.

 

[prime91]

Thanks for the replies guys.

I've been looking at crypto, but honestly it hurts my brain a bit and I don't really know if I have the free cash to be gambling. Also 40% fees? That's rough, probably won't be anything left after that.

ETF's seem like a decent idea. 5 years seems like it would be a decent amount of time to see higher growth than in a 32 day account. Does anybody have any suggestions? Some sort of Top 40 fund on EasyEquities?

40% fees is a lie. Cryptos are a worthwhile risk. By this I mean with enough research and investment principles, you can grow your money so rapidly you'd regret not having started earlier. Note: I do understand that people have different levels of risk tolerance so always DYOR