Here's a million...

alf101 said:
In my wallet ;)

For most middle class people, if u add just your pension and property equity together u already have over a million.
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Ah.
But property isn't really that liquid, and if its your residential you can't exactly use it like you could use an extra mil in cash.

I think the OP meant that what would you do it someone just gave you R1mil. Cash.
Extra. On top of what you now have.
What would you do with that?
 
If its R1million, and you just got it as a gift or whatever you could take the risky route and invest in something that could have u set for life :D Worst case scenario: You lose R1mill, best case: Make 20mill
 
Geriatrix said:
Ah.
But property isn't really that liquid, and if its your residential you can't exactly use it like you could use an extra mil in cash.

I think the OP meant that what would you do it someone just gave you R1mil. Cash.
Extra. On top of what you now have.
What would you do with that?
Click to expand...

I know what he meant. :)

Ok, I'll take a trip to here:
www.flymig.com/

and then if I have cash left, I'll drive down to Thundercity.
www.thundercity.com/
 
Geez, now you lot have confused me even more. lol. Thanks for all the input and advice. Me thinks speaking to a clever number cruncher at one of the investment banks wouldn't hurt either.

Yeah, I meant R1mil in CASH, in your bank account.
 
AcidRaZor said:
I'd say buy a decent house you can see yourself living in for at least 10 years. (maybe R800k) and then spend the rest of the money (if you paid off your debt) on solar technology. Make your house "off-grid"

:P

There's many things you can do. But investing at your age is probably the best. If you can clear ALL debt now and invest the rest in a lump sum, and then continue to put in 15% of your gross annual income into those investments, by the time you're 40 you can retire comfortably and enjoy your family instead of working your ass off.
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Agree 100% with this. I'd sell my current place, buy a new place for cash and start investing my salary. I'd love to be able to reduce my current work time by say, 2hrs/day and start studying something that really interests me.
 
I would put the R1m in a high interest fixed deposit account. Then I would go to my bank and take out a loan of R1m with the fixed money as deposit. I would then take the interest of the R2m and pay off the loan. That way in about 5 years I would have doubled my money using the banks. Rinse, repeat as many times as needed.
 
TMoose said:
I would put the R1m in a high interest fixed deposit account. Then I would go to my bank and take out a loan of R1m with the fixed money as deposit. I would then take the interest of the R2m and pay off the loan. That way in about 5 years I would have doubled my money using the banks. Rinse, repeat as many times as needed.
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Is this actually viable?
 
hawker said:
Is this actually viable?
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Sort of

Interest charged on loans (which you pay back) is generally higher than that of a high-yielding interest fixed deposit. By borrowing R1mil and pushing that into the fixed deposit you double your income on interest basically, which will push you over the interest charged on the loan.

However, it is a tad risky, it could definately work
 
TMoose said:
I would put the R1m in a high interest fixed deposit account. Then I would go to my bank and take out a loan of R1m with the fixed money as deposit. I would then take the interest of the R2m and pay off the loan. That way in about 5 years I would have doubled my money using the banks. Rinse, repeat as many times as needed.
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hmmm. Interesting (excuse the pun :p). Isn't interest income taxed? If it is wouldn't it then drop the amount of interest you could accumulate?

Acidrazor, why do you say it's risky?
 
HypoThesis said:
hmmm. Interesting (excuse the pun :p). Isn't interest income taxed? If it is wouldn't it then drop the amount of interest you could accumulate?

Acidrazor, why do you say it's risky?
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It's only taxed when it becomes your "income", it can be re-invested until you retire. Sadly, you will only be able to benefit from tax reduction once you cross the 65 year old threshold.
 
kingmonty said:
It's only taxed when it becomes your "income", it can be re-invested until you retire. Sadly, you will only be able to benefit from tax reduction once you cross the 65 year old threshold.
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Cool. Thanks. That's 40 years of waiting....:eek:
 
i'd go to the stockmarket, invest in some big old companies like sab, bhb billiton, sasol etc ....
 
BigAl-sa said:
I'd be wary of property, especially after Zuma's latest rantings on land restitution. Also, it was US mortgage banks (ie property based) that caused the current worldwide stockmarket dive.
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Yeah, but those mortgage banks were asking for big big big trouble by lending as recklessly as they did. They got exactly what was coming to them...

Re. Jacob Zuma's ravings on land restitution. Buying and selling property on the short to medium term can be very profitable - if you know what you're doing. I see a lot of opportunity to before 2010. After that, I will re-evaluate my own circumstances...
 
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