Investment advice please

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Luckywill

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Hi people,

I am pretty new to the forums but noticed some interesting topics being discussed. I have a few questions in the hope of people being able to give me some advice regarding investments.

Myself and another individual started a business and we are looking into investment options with our business net capital. Obviously it must be a safe option, but I understand with most investments there will be a risk. We are just looking for a few options to look at. If anyone has some advice regarding this it would be greatly appreciated. If there is also any details regarding the term of the investments, interest occurred over the certain period, and when the investment period ends if that amount is taxable? Another thing I am a bit unclear about is one can continuously put capital into the investment, lets say on a monthly period?

Any advice regarding this would be more than greatly appreciated.
 
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I take if with safe before the investment there will be a guaranteed interest over the period. It is net capital of the business, so to a certain point we can afford to have a safe investment over a guaranteed one.
 
No, a guaranteed investment is backed by the government, or protected from failure using insurance.

Before you look at "safe" investments, you had better take a look at guaranteed investments so that you can establish your starting point of low risk.

Once you have a picture of what the low-risk (guaranteed) options are, and the rewards from these lower risk options, you can begin to move onto the higher risk options and will be better able to gauge whether the increase in risk provides an increase in profit that justifies the increased risk.
 
On the governement guaranteed investments are the amount that was invested over a certain period taxable when the period ends? I am not very clued up on the options and options to look at so thanks for the advice. It just makes sense to me that if there is capital left after all the salaries are payed and expenses related to the comany are payed that the extra capital be invested for it to grow over time. And with goverment investments can one over the certain period (example 3years) still pay extra capital into the investment on a montly basis?
 
Luckywill said:
If there is also any details regarding the term of the investments, interest occurred over the certain period, and when the investment period ends if that amount is taxable?
Another thing I am a bit unclear about is one can continuously put capital into the investment, lets say on a monthly period?
Click to expand...

You may want to look into unit trusts, there are a myriad to choose from with various risk markets that their portfolios mandate. You pay tax on interest only, further you can have a monthly debit amount drawn off your bank account to increase the capital.
 
Drake2007 said:
You may want to look into unit trusts, there are a myriad to choose from with various risk markets that their portfolios mandate. You pay tax on interest only, further you can have a monthly debit amount drawn off your bank account to increase the capital.
Click to expand...

That sounds like a good idea. Is there any recommended websites where I can go and do a bit of reading up on?
 
I use http://www.stanlib.com

There's no website portal that I'm aware of that gives reviews of the different companies etc. Check one of the major newspapers in the stock markets section gives all the unit trusts and rank / risk that are out there.
 
Thanks, I will do that. I also though yesterday about taking some of my own money and doind a bit of share trading. I read yesterday about a product called OmniTrader. Is it any good? Or is it just another "share trading" company selling software?
 
stanlib have not been a good perform recently .... might want to rather look at coronation or allan grey
 
This post suddenly becomes an OmniTrader advert.

The opening poster claims to know nothing about investing and harps on about "safe" investments and then suddenly jumps into high risk share trading.

Pfffft.
 
davemc said:
This post suddenly becomes an OmniTrader advert.

The opening poster claims to know nothing about investing and harps on about "safe" investments and then suddenly jumps into high risk share trading.

Pfffft.
Click to expand...

lol yeah RAS
 
lucifir said:
stanlib have not been a good perform recently .... might want to rather look at coronation or allan grey
Click to expand...

Yeah I've been with them since they were Guardbank, many moons ago, understand these sorts of investments are not "playing the stock market" they are long term.
 
davemc said:
This post suddenly becomes an OmniTrader advert.

The opening poster claims to know nothing about investing and harps on about "safe" investments and then suddenly jumps into high risk share trading.
Click to expand...

Unit trusts, or collective investments as they are now known, are not "high risk share trading". You can structure a portfolio to best suit your needs across the whole spectrum from small caps to money market.

@OP - Unfortunately unit trusts do not offer a guarantee. If the OP wants a guarantee on a recurring investment he will need to go the five year endowment route.

The tax implications for each investment is different and it would be rather difficult to explain each one here. It varies for different asset classes and different products. There is also the four fund approach to taxation to consider. Sometimes the investment is taxed in the hands of the investment company and other times it is taxed in the hands of the investor. All of this would need to be weighed up in relation to your individual tax rate etc. This often gets stated but unfortunately the best bet is to sit with a financial adviser to discuss your option and ask questions.

lucifir said:
stanlib have not been a good perform recently .... might want to rather look at coronation or allan grey
Click to expand...

He might be better off diversifying across a number of asset managers and asset classes. Many asset managers, including Stanlib, offer exposure to other asset managers on their platform.

Further to this your investment strategy seems to be based on past performance being an indication of future performance. A big no no. Stanlib has explained the reason for their recent performance and this should hold them in good stead going forward.
 
You have a business, which seems to produce excess amounts of cash. First question, can you use this directly to boost your business?

If you want to park the money somewhere, what are your goals? Presumably you want about 8% to beat inflation? Does your business have debt and if so how much does it cost. If you don't have debt, you have no gearing so maybe your business model is incorrect?

Many questions..............ponder your navel a while.
 
davemc said:
This post suddenly becomes an OmniTrader advert.

The opening poster claims to know nothing about investing and harps on about "safe" investments and then suddenly jumps into high risk share trading.

Pfffft.
Click to expand...

I was talking about OmniTrader as software to use after hours for myself, with money that will be coming from my salary. It is not at all related to the company net capital investing. My apologies for not clearing that up. As putting business capital into share trading does not sound like a smart choice at all, and I merely wanted opinions from people regarding this service.
 
Thanks for your response chemfis. In terms of debt we do not have any. As our premises are rented, and mostly costs are just our workers, telkom line etc. We have a sales team but most of they’re salary structure is based on commission with a small basic salary, petrol and cell allowances. When we started we agreed on not acquiring any assets on credit and we are sticking to it. We would rather wait a year or 2 and get it in cash. The reason for me requesting some advice regarding investments is that we have a bigger picture and are not planning on running and being apart of the business until we are 63. We are looking into selling the business in about 8-10 year dependant on future growth. Myself and the co-founder and owner are still very young but agree on these plans. Upon selling we would like to have made as much interest with the initial capital as possible (less risk-based investments though) and adding the amount we acquire from the sell of the company. Thus being able to pursue further financial challenges and being able to do so and still get in a passive income.
 
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