Investment advice

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kahoel117

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I need some investment advice.
I currently save about R250k with ABSA's "Investment Advantage". At the moment the interest rate is 4.5%.
I would like to invest somewhere where the interest rate is higher.
This is not an long term investment , meaning i would like full access to the money.
 
Sit with an independent adviser* to assess your needs/tax/personal circumstances properly, however, based on the rather limited information provided you should look at investing in a collective investment (more commonly referred to as unit trusts). This would be your vehicle of choice and you'd have access to a wide array of portfolios to choose from ranging from conservative money market funds right through to aggressive equity funds. The choice would depend on those needs mentioned earlier but with a short term horizon you'd probably look at leaning more towards conservative.


* if you're in Durban I'd happily offer my services
 
I guess seeking some professional help would be best. I have been contacted by ABSA's Aims department, so might give them a call.
I also have an investment account at ALLAN GRAY so not too sure if they have something in those lines.
Low to Medium risk with access to my money any time. No waiting period for money to be released.
That was/is my main reason for keeping my money in the ABSA Investment Advantage account. Just i'm sure there is a better way to get higher interest rate.
 
kahoel117 said:
I guess seeking some professional help would be best. I have been contacted by ABSA's Aims department, so might give them a call.
I also have an investment account at ALLAN GRAY so not too sure if they have something in those lines.
Low to Medium risk with access to my money any time. No waiting period for money to be released.
That was/is my main reason for keeping my money in the ABSA Investment Advantage account. Just i'm sure there is a better way to get higher interest rate.
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You will be far better off most other places. At a 4.5% return don't fool yourself into thinking you are making money. With inflation running at around 6% you are losing money in real terms.

I do not know ABSAs Aims department myself but just beware that they do not just try and talk you into a fixed deposit or something else with them. Also ensure the adviser is actually independent and not tied to one investment house. You want to be able to shop around to reduce costs.
 
It all depends on your time frame and why you are keeping 250K cash.

For instance, if you are going to use the 250K for a deposit towards a bond with in the next 6 months then cash will be the safer option.

I don't think you will get +5% from any banks for instance access. The most I saw was 4.8% from investec/fnb, which is only +R60 extra a month.
 
Thanks for the advice !!! ... The cash is not intended for anything specific. I'm currently pumping +/- R4K into the account every month. The initial purpouse for the investment was for a new car, but decided against it as my current car is good enough and paid for.
I will have a talk to my banks investment guys just to see what they are offering with products and fees. Also with other financial advisors.
I can see now that whatever they will be offering is going to be a long term commitment. Which i will not do....
 
There is companies that can do that for you :D
Its a shame the lotto numbers never comes for me too !!! :whistle:
 
I use to have a money market a few years back with Absa and at the time interest were slightly better than the Investment Advantage. The Money Market's interest weren't fixed, it fluctuated on a daily basis, but ALWAYS beat the Investment Advantage rates. However later they decided that you have to had +R100 000 in the account to not get charged when withdrawing from the account.
Unfortunately I did not have that amount of money in there so had to go with Investment advantage.
 
RSA Retail bonds is another option too. The interest is way better as well.
2 years @ 6% ain't bad. It beats the 4.5% i get from ABSA at the moment.

@shaunyct. Are you still invested with Investment Advantage ??
 
The AIMs guys push ABSA unit trusts, look for an independent advisor...
 
kahoel117 said:
RSA Retail bonds is another option too. The interest is way better as well.
2 years @ 6% ain't bad. It beats the 4.5% i get from ABSA at the moment.

@shaunyct. Are you still invested with Investment Advantage ??
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do you know if you have access to these investments? As far as I know your money is frozen for the duration of the investment period.
 
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@rvq. thanks. will seek independent financial advice :D

I must really move my money. Maybe split it in different investment options. As long as its better then SKELM(AB)SA.
 
R250k is not too much. Buy some RSA Retail Bonds or else consider an investment with Coronation or Allan Grey. But use it as a start and invest something each month. Compound interest will do the rest of the work for you.
 
I heard a lot of people saying that investing in property would be ideal. Like buying , then renting out that property. Though personally i dont want the headache with renters and the other things that go with it.
 
kahoel117 said:
I heard a lot of people saying that investing in property would be ideal. Like buying , then renting out that property. Though personally i dont want the headache with renters and the other things that go with it.
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Those that invest in property don't manage their properties themselves. Properry is a good investment because you use other peoples money (opm) to build your portfolio in the form of bank loans and rental income. That is why your percentage return is much higher and your capital growth more steady
 
With the R4k i pump into ABSA every month , i might buy a apartment/flat/house and rent it out if there is a good return.
Guess will just have to see how it all works.

Currently getting 4.5% pa from my investment advantage account.
 
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