Bond and cheque accounts

Candystore

Candystore

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I have a (home loan) bond with ABSA as well as a cheque account. Both are in the name of a CC. The bond is almost paid off. Is there any sound financial reason for keeping open the bond account or the cheque account? The cheque account was used solely for a debit order to pay the bond account.

PS: I believe the bond account doesn't have a flexi option attached to it.
 
Candystore said:
I have a (home loan) bond with ABSA as well as a cheque account. Both are in the name of a CC. The bond is almost paid off. Is there any sound financial reason for keeping open the bond account or the cheque account? The cheque account was used solely for a debit order to pay the bond account.

PS: I believe the bond account doesn't have a flexi option attached to it.
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You'd generally keep your bond open with a small balance in case you need money to fix things or add to the building. If you don't intend too, you can close it but bear in mind the length of time and difficulty in getting a new bond if needed.
 
OhYeah84 said:
You'd generally keep your bond open with a small balance in case you need money to fix things or add to the building. If you don't intend too, you can close it but bear in mind the length of time and difficulty in getting a new bond if needed.
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He says it's not an access/Flexi bond so that's not really an option.
 
Is this a primary home or vacation / family holiday home?
By the limited info, I would assume a hefty loan account in favour of one or more members?

Depends on what you want to do with the property going forward. The cheque account would make sense if you need to account for expenses and or plan to fund and repay the member loan/s.

Bond will lapse anyway if not a flexi
 
HunterNW said:
www.moneyweb.co.za

[TOP STORY] Is the idea of a ‘paid-off’ home loan still winking at you?

Rather than using extra cash to pay off your mortgage faster, put it into a personal investment vehicle which grows at a higher rate: Marcel Wasserman, independent advisor.
www.moneyweb.co.za www.moneyweb.co.za
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This is dumb advice.

Bond has a fixed rate. UNLESS THAT INVESTMENT GUARANTEES A HIGHER RETURN ITS JUST PLAIN DUMB

Also income will be taxed.

I take money from my bond on occasion to do crypto trades, but this far exceeds the bond %
 
Snyper564 said:
Magic
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My RA is in the Coreshares OutAggressive Index Fund and its annualised returns up to 31 May was 9,8%

The moderate fund's returns was 10,5%.

The Allan Gray Balanced Fund is 11,8% annualised and 3,1% YTD.

Unless I misunderstand the definition of a moderate fund?
 
PhreakBoy said:
My RA is in the Coreshares OutAggressive Index Fund and its annualised returns up to 31 May was 9,8%

The moderate fund's returns was 10,5%.

The Allan Gray Balanced Fund is 11,8% annualised and 3,1% YTD.

Unless I misunderstand the definition of a moderate fund?
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Look I get it, but this is historical. Should everything go to poep telling ppl to use bond money for investment is poor investment advice. If its not guaranteed its a no no
 
Snyper564 said:
Look I get it, but this is historical. Should everything go to poep telling ppl to use bond money for investment is poor investment advice. If its not guaranteed its a no no
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I don't agree that it is as simple as "telling ppl to use bond money for investment is poor investment advice." - I do agree that there is risk involved with that strategy, but a proper plan should diversify that risk.

Telling ppl to blindly pay off a bond with no considerations of external factors carries similar risk.

My interpretation of the advise is that he is speaking more to the psychological aspect of keeping a bond open and continuously dipping into the additional payments.

Psychologically, keeping the extra payments separate in a different investment vehicle until such time that the full bond can be settled would likely result in the bond being paid off sooner as the individual is less likely to sell off the investment to do home improvements (the pool or double garage as per article's example).
 
PhreakBoy said:
I don't agree that it is as simple as "telling ppl to use bond money for investment is poor investment advice." - I do agree that there is risk involved with that strategy, but a proper plan should diversify that risk.

Telling ppl to blindly pay off a bond with no considerations of external factors carries similar risk.

My interpretation of the advise is that he is speaking more to the psychological aspect of keeping a bond open and continuously dipping into the additional payments.

Psychologically, keeping the extra payments separate in a different investment vehicle until such time that the full bond can be settled would likely result in the bond being paid off sooner as the individual is less likely to sell off the investment to do home improvements (the pool or double garage as per article's example).
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Ah i just browsed over it briefly. I do this too, I pull out my flexi money the moment I have a "better investment" opportunity. But it does come at a risk which I personally understand for my position
 
A3@MBB said:
Is this a primary home or vacation / family holiday home?
By the limited info, I would assume a hefty loan account in favour of one or more members?

Depends on what you want to do with the property going forward. The cheque account would make sense if you need to account for expenses and or plan to fund and repay the member loan/s.

Bond will lapse anyway if not a flexi
Click to expand...
It's an empty stand :(
 
Candystore said:
I have a (home loan) bond with ABSA as well as a cheque account. Both are in the name of a CC. The bond is almost paid off. Is there any sound financial reason for keeping open the bond account or the cheque account? The cheque account was used solely for a debit order to pay the bond account.

PS: I believe the bond account doesn't have a flexi option attached to it.
Click to expand...

Enable the flexi! Its a system flag. Reset the period to 20 years again.

You paid thousands for that facility! Keep it
 
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