Investment Advice

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Pope33

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So I am 22 years old and would like some advice and inputs for possible investments.

My situation is that I will be able to use R5000 a month for these purposes. My goal is to build the value of the investment over a long period of time. Thanks
 
Go to easyequities.co.za and sign up. You'll get two accounts, a stockbroking account and a TFSA. You can put upto R30K p/y into the TFSA - put the rest into the normal stock broking account.

On the TFSA side probably choose 4 -5 ETF's and every month distribute your money evenly into them. Do some research, but I would suggest that SatrixINDI and DBXUS could be two. ETF's are groups of shares.

You would be buying single shares in the stock broking account once you have used the R30K cap - you might decide though to split it R2.5K each p/m

I would suggests you buy shares for the long, long term - and buy shares in companies that you understand - maybe use like Vodacom, Woolworths, FNB, Discovery. Later you might want to dabble with smaller caps, but give you portfolio a solid base. spread the cash between a few sectors. Personally, I would not have more than 5% in any one company unless it grows to more, but that's just me.

Start reading business forums and websites

Wish I started at your age..
 
Pope33 said:
So I am 22 years old and would like some advice and inputs for possible investments.

My situation is that I will be able to use R5000 a month for these purposes. My goal is to build the value of the investment over a long period of time. Thanks
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I would suggest getting a financial adviser.
They will guide you through the different types of investment, the associated risks and costs thereof, and the the potential profits.

Alternatively, start doing a lot of research (this doesn't really count except for some pointers on what is out there to be researched)
 
The financial advisor's I have chatted too, in an informal setting, have always shocked me with how little they know. I mean, really little. It often surprises me that clever professionals, guys with 7 year degree's, take advice and gives commissions for life, to guys that barely made it out of school. Just my opinion though. Save yourself a fortune, it's not rocket science, just takes a little bit of effort on your side. or just chuck it into ETF's and it takes 0 effort.

* i am sure there are clever, savvy FM's around - I see them on TV all the time (JP Vester being my favourite).
 
I would suggest that you dont take any advice on this forum.

Your individual goals and risk appetite will determine what investment will be best for you.

Go talk to an experienced financial adviser, that has a successful track record.
 
There's lots of free advice. It's good to give yourself a basic understanding, and then perhaps go see a financial advisor.

Standard Bank holds a nice free seminar called "getting started in shares" Link

You don't have to bank with them to attend. The ones I've been to in Cape Town were presented by Simon Brown, of justonelap.com (also a good resource for information), so not really even affiliated with the bank. They were a nice intro.
 
Above all assumes u already putting away 15%(soon to be 27.5%) for pension/retirement.
 
I'm going to assume you don't have RA's in place etc if you have R5000 a month to burn at 22.

Therefore getting a financial adviser in place and start planning your financial future and with those figures hopefully early retirement.
 
Yeah, financial advisor is probably the way to go. That said, what they'll most likely tell you is to:

1. Settle debt
2. Get security (income protectors etc)
3. Invest

No 1 is obvious.
No 2 is good to do through a financial advisor since they keep up with this stuff.

No 3 - investment - well get an RA that is flexible so you can stop contributing if something happens. You'll get to claim back on tax every year so that's a mini bonus BUT you will be taxed one day when it starts paying out.

TFSA is a very good option. Do this yourself through easy equities or FNB. You DO NOT want to do this through an advisor or anybody that charges you performance fees.

If I was you I'd settle no 1 and 2, take R2500 pm and push it to easy equities TFSA and push what is left to an RA. Only you know what your goals are though so go see a pro (just beware of costs).
 
Hamster said:
Yeah, financial advisor is probably the way to go. That said, what they'll most likely tell you is to:

1. Settle debt
2. Get security (income protectors etc)
3. Invest

No 1 is obvious.
No 2 is good to do through a financial advisor since they keep up with this stuff.

No 3 - investment - well get an RA that is flexible so you can stop contributing if something happens. You'll get to claim back on tax every year so that's a mini bonus BUT you will be taxed one day when it starts paying out.

TFSA is a very good option. Do this yourself through easy equities or FNB. You DO NOT want to do this through an advisor or anybody that charges you performance fees.

If I was you I'd settle no 1 and 2, take R2500 pm and push it to easy equities TFSA and push what is left to an RA. Only you know what your goals are though so go see a pro (just beware of costs).
Click to expand...

How do you feel about that relating to Easy Equities up and coming managed fund?
 
SauRoNZA said:
How do you feel about that relating to Easy Equities up and coming managed fund?
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Depends on cost. What will they charge you for the managed part and how much better will the managed account do than a lay person investing 50/50 in say DBXWD and STXIND?
 
I have no debt so that is a positive. I am at first going to set aside 5000 amount as this i think is achievable bit i think I will be able to increase the amount later on.

When talking about a financial advisor would it be sufficient to go see PSG as i have a local branch. Or should I go see a independent advisor who does not sell its own products.
 
Pope33 said:
I have no debt so that is a positive. I am at first going to set aside 5000 amount as this i think is achievable bit i think I will be able to increase the amount later on.

When talking about a financial advisor would it be sufficient to go see PSG as i have a local branch. Or should I go see a independent advisor who does not sell its own products.
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My vote goes for independent with a track record.

Mine works for NMG. NMG as a whole decided STANLIB products (amongst some others) are the better ones at the moment so that is all they are punting. Even when TFSA was announced my advisor punted the STANLIB one even after I told her I'm more interested in the Easy Equities one. Not that STANLIB products are bad but due diligence is required on your part to make sure you are getting the best.
 
Pope33 said:
I have no debt so that is a positive. I am at first going to set aside 5000 amount as this i think is achievable bit i think I will be able to increase the amount later on.

When talking about a financial advisor would it be sufficient to go see PSG as i have a local branch. Or should I go see a independent advisor who does not sell its own products.
Click to expand...

This. I cannot understate this enough.

When choosing a FA, make sure you pay for his advise/time. It might cost a bit more upfront, but it will save you much more in the long run. If you can, find one that is a fiduciary (ie has the legal responsibly to do what is best for you).

If you need some help, I can try help you out, PM me.

But honestly it's better to meet with a FA face to face, it just makes it a lot easier to explain things.

Irrespective though, if I had R5k to invest pm, R2.5k would go into my TFSA (assuming a few other criteria are met).
 
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