Investing R100k

[ice_cubes]

Hi Guys

I'm not sure if this has been asked before.
Whats the best way to invest R100k cash? The aim is to invest it and cash out after 11years (2025)

 

[Sinbad]

What is your risk appetite?

 

[Hamster]

Go
Ask
A
Professional

 

[Debeer165]

Give
It
To
Me

 

[Ecco]

Go
Ask
A
Professional

Awe, no fun dude.

But he is right. Risk profile needs to be checked etc. If you can take risk, some might say equities, if not some may suggest something as simple as a fixed deposit. All depends

 

[nand]

I'm a professional invest broker at Bank of Nigeria. I handle your monies very well.

Invest, we will.
Please give me number to call you soonest.

May god be with you
Ivest Monataries

 

[Sinbad]

I put a big lump sum into my bond. 7.25% minimum return, tax free.

 

[onexios]

Unit trusts do seem to be promising, I would think with that over 11 years will build a nice solid profile.

 

[Galactica]

Awe, no fun dude.

But he is right. Risk profile needs to be checked etc. If you can take risk, some might say equities, if not some may suggest something as simple as a fixed deposit. All depends

Fixed deposit for 11 years is insane, equities should be in the picture regardless of risk appetite. The question is the percentage that should be in equities. With a fixed deposit she won't do that well against inflation.

 

[Cius]

Pick a good unit trust that has excellent returns for more than 10 years. Compare some Corononation, Alan Grey, Nedbank, etc funds that are heavy in equity.

Pension compliant funds can only have a max of 75% equity generally so a little less risky but decent returns. I have a split between Alan Grey Global Balanced (5Y return 14.7%), Coronation Global Balanced segregated portfolio (5Y return 17.6%) and Investec Balanced (5Y return 15.4%).

If you look at the 100% equity funds the returns can be better. I like Nedbank Rainmaker and a few others but am not in them as for now I keep spare cash in the bond rather. Still, this is just an indication, not trying to make you join a specific fund.

Also be careful of financial advisors. The info they give on fund performance can be found easily via google and if you do go via them they will take an up front fee (generally around 5%) and then ongoing fees for as long as you have the product. Try to invest yourself without the expensive fees if you can.

 

[ice_cubes]

Thanks for the tips

Give
It
To
Me

no such luck! It was also given to me...wont be parting ways with it anytime soon

 

[OGroteKoning]

Thanks for the tips



no such luck! It was also given to me...wont be parting ways with it anytime soon

Please disclose full details of said giver. I have a letter to write

 

[Bosvark@]

I shall pm you my bank account details. I will look after it for you... Promise..

 

[Arthur]

If you're averse to risk, you could do worse than putting it into RSA Retail Bonds. The brokers and financial advisers never mention it because they make nothing. Simply register on their website, EFT the funds to National Treasury, and voila, you're invested. Very simple. Last I looked the fixed interest 5y bond was paying 8.25%. There's an inflation-linked option, too.

Edit: Here's their website https://secure.rsaretailbonds.gov.za/

 

[f2wohf]

I would say, open an Interactive Brokers account (10 000$ so you will have to put a little more than 100k) and you will have access to a lot of markets at low fees.

Keep investing on ETF and if you want to go on blue chips, go at their 52 weeks lowest price with a balance between industries, currencies and mostly, read their annual reports thoroughly so you will learn.

 

[dunkyd]

RSA bonds.....?Read the newspapers and decide. Anything that our trusties can lay their grubby hands on should be avoided like the plague !

 

[Arthur]

Huh? How can they ever get their hands on the bonds? RSA Bonds are as safe as any deposits anywhere.

Btw, I suggest them only as better than dumping into a money market or call account. There are plenty of other options with similar or better returns, though slightly higher risk.
RSA Bonds are about as low risk as you can get.

 

[froot]

Unit trusts do seem to be promising, I would think with that over 11 years will build a nice solid profile.

I've racked up around 10% in the last 4 months, but one bad day on the JSE and you lose a big chunk of that. It's all good and well when equities are profitable, but it's been a little unstable on some days.

 

[dunkyd]

I know a Transnet pensioner. She thought her money was safe, sadly.......

 

[Hamster]

I've racked up around 10% in the last 4 months, but one bad day on the JSE and you lose a big chunk of that. It's all good and well when equities are profitable, but it's been a little unstable on some days.

Over 10-20 years the "good" days will far outnumber the "bad" days though. Besides if the JSE completely crashes and never recovers we'll have bigger things to worry about.