Investing 100k

zerocool2009

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Sep 4, 2009
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Look, my honest view is, if you have BAD debt, kill that. If you want to save, make 3 or 4 buckets, drip feeding that.

I have a motto which I stick by, every year I start something new (related to investments).

It all add's up in time (that important), but invest smartly (not wasting FEES / enriching others)
 

Desig

Well-Known Member
Joined
Sep 15, 2016
Messages
230
Hey guys

Saved the balloon payment on a car and have it for another 2 years, where is the best place to invest for 12 - 24 months? Was at tyme bank but interest rated has dropped from 10% to 7%
I thought 7% per month and was ready to sell a car :( I so daft
 

SauRoNZA

Honorary Master
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Jul 6, 2010
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37,934
Hey guys

Saved the balloon payment on a car and have it for another 2 years, where is the best place to invest for 12 - 24 months? Was at tyme bank but interest rated has dropped from 10% to 7%
What do you mean saved the balloon payments on a car?
 

zerocool2009

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Sep 4, 2009
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4,603
Hey guys

Saved the balloon payment on a car and have it for another 2 years, where is the best place to invest for 12 - 24 months? Was at tyme bank but interest rated has dropped from 10% to 7%
If you have a bond ... prepay your bond (plan B), if you are not happy with Tyme
 

John Tempus

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Aug 8, 2017
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What I cant explain to myself ... the top 10 firms in SA (related to investments ... out of 100 .... its all mining firms).

Example, Harmony is nr 1 at 85% for the year up
They are up only because Gold,Silver,Platinum value itself shot up since January 2020 big time.

If you invested in mining companies without all the SA disasters you would have shown 2,3 or perhaps even higher returns.

Id go so far as to say that if not for metal prices going up in 2020 that most of the SA mining companies would have been declared bankrupt by now. The metals market price going up almost perfectly offset the stock market and economic crash we have seen in 2020.
 

zerocool2009

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As long as its not SA mining firms. Make sure you pick mining firms mainly operating in stable countries, makes a huge difference in their output and thus their share price.
The scary facts. Over the last 3 to 4 years... mining shares up 450%
 

thechamp

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Feb 26, 2011
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29,880
What do you mean saved the balloon payments on a car?
I think he means he has managed to save the amount needed for a balloon payment on his car. He still has two years to go before it would be required and he wants to save it somewhere with decent interest
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
6,908
I think he means he has managed to save the amount needed for a balloon payment on his car. He still has two years to go before it would be required and he wants to save it somewhere with decent interest
Anything but a guaranteed income would be silly. In other words only bonds or interest from bank. Nothing else. Everything carries way too much risk for 2 years
 

John Tempus

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Aug 8, 2017
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The scary facts. Over the last 3 to 4 years... mining shares up 450%
Yes cause metals have rebound across the board over the last 3-4 years :)

The mining industry share price doesn't reflect exactly but take gold for instance close to 100% up in the last 4 years.

So the mining industry depending on the company is either up baseline value or multiples of it depending on how efficient they are mining/producing the metals.

So with just gold for instance being up nearly 100% over the last 4 years it is no surprise that some industries share price could be up 400%-500% or even more in the same time span.

Take a look at the mining industries as a whole post 2008 when metals crashes, they all tumbled like donkeys because their output were cut considerably due to the price of the metals not making it worth mining at high rate.

Mining industry efficiency and profitability is extremely interlinked with the actual market price of the metals.
 

SauRoNZA

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I think he means he has managed to save the amount needed for a balloon payment on his car. He still has two years to go before it would be required and he wants to save it somewhere with decent interest
No hell duck that then.

Kill the balloon and drop the interest on the car and kill that **** double quick.

You aren’t “investing” when you have debt with higher interest rates negating it.
 

RedViking

Nord of the South
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Feb 23, 2012
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29,874
Why not pay it now?

How much is the extra interest on the car over the 2 year period compared to the interest you will get from the bank?
 

SauRoNZA

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Why not pay it now?

How much is the extra interest on the car over the 2 year period compared to the interest you will get from the bank?
Almost a certainty the car finance deal with have significantly higher interest rate than anything offered from a guaranteed interest savings vehicle.
 

surface

Executive Member
Joined
Oct 23, 2006
Messages
9,252
We personally decided to invest 100K in RSA retail bonds the other day. No debt outstanding.

I know. I know.
 

neoprema

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Jan 12, 2016
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Does anyone know if there's vehicle finance account like the one Nedbank had in the early 2000's? (pre MFC days)

It was quite interesting. You bought a car, and opened this particular vehicle finance account. What it allowed you to do was invest money in the car's account and interest earned was directly deducted from monthly installments.

So if you were paying R5000 pm for a car, you had R100 000 lying around BUT you might need tomorrow - you could put it in this account. The interest earned on the R100 000 was deduced on your next car installments so your debit order would run for R4600 or whatever. Some guys I know had so much money saved in their accounts their installments were almost 0. If you needed the funds you just transferred them out and the installment went back to normal .

It was quite ingenious, but doesn't seem to exist anymore.
 

zerocool2009

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Sep 4, 2009
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4,603
Does anyone know if there's vehicle finance account like the one Nedbank had in the early 2000's? (pre MFC days)

It was quite interesting. You bought a car, and opened this particular vehicle finance account. What it allowed you to do was invest money in the car's account and interest earned was directly deducted from monthly installments.

So if you were paying R5000 pm for a car, you had R100 000 lying around BUT you might need tomorrow - you could put it in this account. The interest earned on the R100 000 was deduced on your next car installments so your debit order would run for R4600 or whatever. Some guys I know had so much money saved in their accounts their installments were almost 0. If you needed the funds you just transferred them out and the installment went back to normal .

It was quite ingenious, but doesn't seem to exist anymore.
It sounds like a flexi for a car...
 

RedViking

Nord of the South
Joined
Feb 23, 2012
Messages
29,874
Does anyone know if there's vehicle finance account like the one Nedbank had in the early 2000's? (pre MFC days)

It was quite interesting. You bought a car, and opened this particular vehicle finance account. What it allowed you to do was invest money in the car's account and interest earned was directly deducted from monthly installments.

So if you were paying R5000 pm for a car, you had R100 000 lying around BUT you might need tomorrow - you could put it in this account. The interest earned on the R100 000 was deduced on your next car installments so your debit order would run for R4600 or whatever. Some guys I know had so much money saved in their accounts their installments were almost 0. If you needed the funds you just transferred them out and the installment went back to normal .

It was quite ingenious, but doesn't seem to exist anymore.
So you make debt on a car paying off interest and then invest a big chunk of money so you can pay of the interest......

I guess people *might* gotten a bit smarter.
 

neoprema

Expert Member
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Jan 12, 2016
Messages
2,948
So you make debt on a car paying off interest and then invest a big chunk of money so you can pay of the interest......

I guess people *might* gotten a bit smarter.
I think the model was that you had "perceived" savings you could then put elsewhere. The R500pm you saved you could have invested every month. Sure, the R100k could have been in a 32-day notice account but if I remember correctly at that stage the interest would have been less, and you did not have immediate access to funds without penalty.
Although it is a long time ago, I don't remember exactly how the interest worked. Obviously the bank benefited too.
 
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