Investing

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RVQ

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So withdrew and closed all my investment/bank accounts I had all over the place and as of this morning I'm sitting with a decent 300k. The initial idea was to dump all the cash into the home loan but looking at the interest rates and reading around it seems like investing it may be a better option in the long term.

Investment advice seems to be just as bad as computer advice, the adviser may be a professional in his field but you never know if he is the expert/go to guy. Access to the web also doesn't make it any easier, especially for a n00b. So I thought I'd do the same thing I'd do for computer advice which seems to have worked in the past, ask the powers that be and finally settle the age old questions NVidia/ATi, AMD/Intel, IOS/Android...

So I'm thinking of splitting the cash and going with 2/3 EFTs (Satrix?) and using a smaller amount on the stock markets. A colleague also mentioned PSG-Online for investing?

Any comments/suggestions?

Thanks
RVQ
 
Save some more, buy a flat and rent it out. I wont play around in the stock market hoping that one day it will make me rich, with the flat, you have a steady income. Real estate is the best thing to invest in.
 
You going to get lots of different advise from different people on this forum. Some pretty good advise, but they will probably conflict each other.

I would look at these as ideas, but i think getting a financial advisor is probably the best thing to do. Thats my 2c.

That said - i dont have a financial advisor - but i also dont have 300k lying around.
 
CamiKaze said:
Save some more, buy a flat and rent it out. I wont play around in the stock market hoping that one day it will make me rich, with the flat, you have a steady income. Real estate is the best thing to invest in.
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So would you say it would be best to park the cash in my current access bond until I find decent place and have enough cash.


Ecco said:
I would look at these as ideas, but i think getting a financial advisor is probably the best thing to do. Thats my 2c.
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On that note can anyone recommend any decent financial advisors my last one was not that good.
 
What you want from your money will determine where you invest it i.e. capital growth, capital preservation or income.

Figure out your needs, and then decide where to place it.
 
CamiKaze said:
Save some more, buy a flat and rent it out. I wont play around in the stock market hoping that one day it will make me rich, with the flat, you have a steady income. Real estate is the best thing to invest in.
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do you use an agency to collect fees. don't look forward to knocking on doors for rent every month.
 
Let me help you:

* Most will recommend you put it in your bond - always pay off debt first before investing as the interest on debt is almost always higher than other safe investments

* Some will recommend you put it into ETFs like Satrix - apparently people seem very happy with Satrix Divi all the time.

* Few will recommend buying a place to rent - although it will take a few years before you start seeing real returns on this investment.

* I would recommend giving it to me :)

* Some would recommend not investing it right now - the market is very volatile and it would be easy to lose that money, especially if you have no experience.

* Go see a financial advisor that charges per hour.
 
^^vampire^^ said:
Let me help you:

* Most will recommend you put it in your bond - always pay off debt first before investing as the interest on debt is almost always higher than other safe investments

* Some will recommend you put it into ETFs like Satrix - apparently people seem very happy with Satrix Divi all the time.

* Few will recommend buying a place to rent - although it will take a few years before you start seeing real returns on this investment.

* I would recommend giving it to me :)

* Some would recommend not investing it right now - the market is very volatile and it would be easy to lose that money, especially if you have no experience.

* Go see a financial advisor that charges per hour.
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You have 300k

Diversify it.
Can do the Satrix - excellent exposure to equity at the moment (avoid money market at all costs),currently the money market isnt really even curbing inflation let alone a decent return on capital investment.

If it was me,Id probably do 125 into the satrix 125 into a corronation/prudential inflation plus or balanced fund for some form of decent return as well as guarenteeing my capital in some part leaving you with a cool 50k

This is the play dough that will attempt to diversify in riskier stuff and offset the bad times with the good and average you out.

It completely depends on your risk appetite here nothing more.

I risk level of around 6-7 and above is suitable for this.Attempt to put offshore and AVOID europe(in my opinion)
Funny enough you will do decently within the yen or dollar.Dollar is strong at the moment.

Anyway as stated by previous posters everything here is opinion and what not.So good luck and I hope for the best for your returns.
 
See a few financial advisors (one from each company) with history in investing money...

Take all the advice you got, make ur own decision based on what that.

Try to go to the investment companies direclty (bypassing the financial advisor), most companies like alan grey, coronation will allow you to invest on your own behalf, and you wount have to pay the high comissions and extra fees.

OR if you are too lazy, buy SA retail bonds. 7.5% interest, no fees, no comissions.
 
One of the key principles to investing is to diversify. I wouldnt invest "all" of your cash in another property, or shares, or a high interest bank account etc.

So you should do some investigation yourself and see what appeals to you. Stocks you can manage your self, funds or unit trusts that someone else manages, property, bonds, savings accounts etc. You could look at how these different vehicles have performed in the past (with the understanding that past performance doesnt guarentee future performance, but it can provide some kind of indication when you look at it wholistically).

Once you have done this, then you should work out whether the potential return beats out the interest you would save over the life of your property bond if you just put the money into that. Then make a decision.
 
This is a game of risk vs reward.

If you put the 300K into a bond you have a guaranteed return (savings on interest) and you lower your risk should something go wrong (like losing your job).
If you invest in a high growth product such as ETFs you have no guarantee of returns and your risk is higher since you're sitting with a house which you could lose if something goes wrong, plus your investment may take a turn for the worse.

Equity funds have historically done well over the the medium to long term but that does not mean that there could not be a stock market crash or major calamity which reduces your investment to peanuts overnight.
My advice would be to first make sure you are financially secure and have your bases covered (retrenchment, disability, retirement) before you invest.
 
Until you figure out three things you are either going to go round in circles or make the wrong decision.

Thing 1) Your objective
Thing 2) Your time frame
Thing 3) Your appetite for risk
 
Thanks for the advice so far guys. When it comes down do it I'm looking at a long term, grow my capital solution with a 6to7 risk level. At this point I prefer staying clear of trading.

With my current bond sitting at prime I figure all I need is for my investment to do prime plus anything to come out with a positive balance, ruling out all the safer investment options. To add I'm already putting a decent amount extra into my access bond which has already left me with a significant amount of emergency funds. I will only get another property once this one is paid off which if all goes as planned should be in about 8 years. Apart from my bond the only other debt on my name is my car.

I'm now thinking of consulting a financial advisor but thanks to previous experience I'd like to at least know one or two fancy words before walking in and getting taken for a ride...
 
RVQ said:
With my current bond sitting at prime I figure all I need is for my investment to do prime plus anything to come out with a positive balance
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Beware of RIY (Reduction in Yield) on investments or TER (Total Expense Ratio).
This is made up of admin fees, agent commission, trading charges, etc. which eat into your investment.
So if the RIY on your 10% per annum investment is 2.5% it means you're effectively only getting 7.5% growth which is 1% below prime.

The admin fees and charges are what really eat into an investment because of their compounding effect over time.
Make sure that your broker or financial adviser explains this to you in detail because this is where most investors get bitten.
Fancy graphs of high growth rates are presented while the expenses and fees are brushed over or hidden in pages of fine print.
 
BBSA said:
Be careful for advisors who works on a commission basis, their advice is usually what is the best for them and not for you.
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While this may be true in isolated or a small number of cases, ask yourself what are two of the best ways to generate business? Doing a good job and keeping the client as a happy customer over the long term and doing a good job so that your clients are confident in referring and recommending you. Now read your statement again.
 
Freshy-ZN said:
While this may be true in isolated or a small number of cases, ask yourself what are two of the best ways to generate business? Doing a good job and keeping the client as a happy customer over the long term and doing a good job so that your clients are confident in referring and recommending you. Now read your statement again.
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I had a financial adviser speak to me who pushed a specific RA very hard. Personally, I don't find a RA appealing at all so told him straight that I would prefer looking at other options, which he then proceeded to provide me with details about. A few days later he phoned and tried to push the RA off on me again, which I again refused. Never heard back from him since, even after trying to get in touch with him on more than one occasion. People are stupid sometimes.
 
Read Benjamin Graham's The Intelligent Investor (look for the one with updated comments). It is a long book, but it gives good advice regarding investing.

Then decide
 
Messugga said:
I had a financial adviser speak to me who pushed a specific RA very hard. Personally, I don't find a RA appealing at all so told him straight that I would prefer looking at other options, which he then proceeded to provide me with details about. A few days later he phoned and tried to push the RA off on me again, which I again refused. Never heard back from him since, even after trying to get in touch with him on more than one occasion. People are stupid sometimes.
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I agree, there are idiots in any profession/business but we shouldnt condemn a whole industry based on the actions of a few misfits.
 
1 - Satrix
2 - Allan Gray
3 - Coronation
4 - Property portfolio in a mutual fund
5 - Kruger Rands
6 - Cash on hand in deposit account

If this makes sense, I'll suggest proportions

I do not like RAs
 
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