Earning monthly interest

[Mike Hoxbig]

:erm: over the last how many years is that figure from?

14.2% over the past year, 29.5% over the past 2 years, 63.5% over the past 3 years. So I'm guessing that he's basing it on the past 3 years. You get the drift though - for a noob looking to start investing, it's definitely one of the more attractive options.

 

[Devill]

14.2% over the past year, 29.5% over the past 2 years, 63.5% over the past 3 years. So I'm guessing that he's basing it on the past 3 years. You get the drift though - for a noob looking to start investing, it's definitely one of the more attractive options.

Yes that is the effective interest figure if I am not mistaken

I had it as simple interst sorry.

 

[xrapidx]

Yes that is the effective interest figure if I am not mistaken

I had it as simple interst sorry.

That is the increase in "share price" over the period - if I'm not mistaken

So if it cost you R1 a share three years ago - it'll now be worth R1.63

 

[Devill]

That is the increase in "share price" over the period - if I'm not mistaken

So if it cost you R1 a share three years ago - it'll now be worth R1.63

Yes, it is like compound interest shown in a simpler way. eg 9% over 3 years per annum is effectively 29.5% interest... iirc

 

[BLIXEMPIE]

Well - over 20 years:
1 : 31456.43
2 : 32983.57
3 : 34584.86
4 : 36263.88
5 : 38024.41
6 : 39870.42
7 : 41806.04
8 : 43835.64
9 : 45963.77
10 : 48195.21
11 : 50534.99
12 : 52988.35
13 : 55560.83
14 : 58258.19
15 : 61086.5
16 : 64052.12
17 : 67161.71
18 : 70422.27
19 : 73841.12
20 : 77425.95

So I make my R30k and I never get to enjoy it? Coz I mean in 20 years with inflation and what not R72k will be like R30k today. I can make R72k in months if I put my mind to it anyway. Was just wondering if there was a way to make good interest with R30k but I guess there isn't really. Maybe with millions, sure.

 

[supersunbird]

Yes that is the effective interest figure if I am not mistaken

I had it as simple interst sorry.

And I was being conservative with the 20%

 

[Devill]

So I make my R30k and I never get to enjoy it? Coz I mean in 20 years with inflation and what not R72k will be like R30k today. I can make R72k in months if I put my mind to it anyway. Was just wondering if there was a way to make good interest with R30k but I guess there isn't really. Maybe with millions, sure.

Well if it was invested in the divi strix earning the effective 63% over 3 years it could be / have been

30 000 x 1.63 = 48900

Inflation taken into account (let us make yours 12% per year) = 1.12^3 = 1.4049.

Thus inflation is going at around 40.5% over those three years. Thus the money will be worth around 35000.00 in today's terms.

That is if i remember the calculations correctly

 

[supersunbird]

So I make my R30k and I never get to enjoy it? Coz I mean in 20 years with inflation and what not R72k will be like R30k today. I can make R72k in months if I put my mind to it anyway. Was just wondering if there was a way to make good interest with R30k but I guess there isn't really. Maybe with millions, sure.

No man, with somethign like Satrix Divi you can make nice money over the long term and if you reinvest the dividends that payout then you will get really nice compound growth. The invest is also still pretty liquid since you can get you money out in about 7 days. But it is more riskier than putting it into a capitec account over the short term since market prices can drop.

 

[Freshy-ZN]

Satrix Divi has returned 9% avg over the last 5 years. Perhaps only looking at the 3 year picture is not the best indication of results.

 

[nakedpeanut]

Ya you gotto remember the market crash in 2008.. So any 3 year high growth figures are because of that. Don't get suckered in hoping for huge returns.
On the other hand I am making use of a few Satrix products and only been doing it for a year, with monthly instalments but looking at an average of 11% growth..

The Top 40 is one of the worse performers for me so far... But history is no indication of future, so who knows..

These products should be used as long term growth instruments. I like it because of the ease of use and good exposure.

**Always go to a proper FA for advice.