DominionZA
Executive Member
A little more will come off the capital though. So one way or another you score.
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Interest rate cut by 50 bips
- Thread starter EtienneK
- Start date
A little more will come off the capital though. So one way or another you score.
supersunbird
Honorary Master
Retails savings bonds and bond through unit trusts or ETFs. If you know so much please enlighten us with you wisdom...
supersunbird
Honorary Master
Now you will pay it off faster, so score anyway
Jola
Honorary Master
The after tax returns on those are close to zero.
You are the one that claimed to know about many alternative investments, go ahead and enlighten us !
supersunbird
Honorary Master
Just because one is retired doesn't mean on should only be in "cash" earning interest. Other asset classes like bond (better than cash but not inflation beating) and property (inflation beating) and equities (inflation beating) should still be on ones portfolio just at a lesser extent or else you capital value will just keep falling against inflation and will eventually become useless...
supersunbird
Honorary Master
Please quote where I claimed that...
Or maybe you mean?
So what is your solution Jola? Cash? Which performs even worse than bonds against inflation Jola? I don't want to put words in your mouth so correct me if I am wrong...
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Jola
Honorary Master
Sorry, I was referring to chrisc4290's comment.
I certainly don't have the answers, I am waiting for you guys to come up with good suggestions.
I don't have anything in cash, and I certainly won't buy bonds at low interest rates, your capital loss will just be too great once interest rates start going up.
In theory lower interest rates should stimulate the economy, so you should buy shares - if you dare !
Of course, our share prices are dependent on the world economy, and our economy won't grow if the rest of the world doesn't grow.
Which sort of makes you wonder why they cut rates ?
I certainly don't have the answers, I am waiting for you guys to come up with good suggestions.
I don't have anything in cash, and I certainly won't buy bonds at low interest rates, your capital loss will just be too great once interest rates start going up.
In theory lower interest rates should stimulate the economy, so you should buy shares - if you dare !
Of course, our share prices are dependent on the world economy, and our economy won't grow if the rest of the world doesn't grow.
Which sort of makes you wonder why they cut rates ?
supersunbird
Honorary Master
OK good. I buy shares and shares and shares personally. And so should pensioners still, just to a much lesser extent.