Investment advice

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Nameite

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Hey guys

I've always been terrible at finance, accounting and business was the only subjects I failed badly at school...even lower averages than Afrikaans.

Anyways, if you were to have R30 - 35k a month to invest, what would be the best option?
I've just saved up enough for FNB Money Maximizer, are there any other good investment options?
 
Nameite said:
Anyways, if you were to have R30 - 35k a month to invest, what would be the best option?
I've just saved up enough for FNB Money Maximizer, are there any other good investment options?
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Just checking....do you mean investing a full R30k once off or investing a full R30k each month?
 
Nameite said:
I've always been terrible at finance, accounting and business was the only subjects I failed badly at school
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this is going to a problem for you, you are going to get screwed by asset managers I'm afraid

my advice is to learn some finance, accounting and economics and then try investing your money yourself
 
Nameite said:
Hey guys

I've always been terrible at finance, accounting and business was the only subjects I failed badly at school...even lower averages than Afrikaans.

Anyways, if you were to have R30 - 35k a month to invest, what would be the best option?
I've just saved up enough for FNB Money Maximizer, are there any other good investment options?
Click to expand...

Nice! So you already have 100k. That can serve as your emergency fund and you can steadily start stocking that up until you get to a comfortable amount (based on your circumstances).

I would max. my TFSA contribution locally, so that's 33k right there. You have full access to this money at any time and it's tax-free, so it's a no brainer.

Next, if you feel comfortable with it (given our country), max your retirement annuity to 27.5% of your annual income. Reinvest the tax credit.

Lastly, I'd open some foreign brokerage accounts (td ameritrade, zackstrade and just2trade) and start investing there.

No matter which of the above 3 avenues you go to, I believe diversification will serve you well.

- Invest in property, equities (EFT's) and dividend stock
- Invest in developed, non-developed and emerging markets (check out Paul Merriman's Ultimate Portfolio)

Depending on your age, you might want to go equity heavy or start slowing down into more stable investments like bonds and 'balanced' investments. That is a topic in its own right and I urge you to do your research.
 
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saturnz said:
this is going to a problem for you, you are going to get screwed by asset managers I'm afraid

my advice is to learn some finance, accounting and economics and then try investing your money yourself
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Exactly this. OP I urge you to put some effort into learning how to manage your money and investing.

My own road got started thanks to Patrick, MMM and the reddit folks at r/financialindependence:

https://investorchallenge.co.za/blog/
https://www.mrmoneymustache.com/
https://www.reddit.com/r/financialindependence/

As with all things, you get out what you put in...
 
Thanks for all the advice and links guys, thats exactly what I needed...a point in the right direction :D

Because of my new job, I'm also learning finance and reviewing company balance sheets and stuff...thought I should also play around a bit with my cash instead of just throwing it into a bank account, so I can learn a bit quicker.

Highly appreciated for the responses

saor said:
Just checking....do you mean investing a full R30k once off or investing a full R30k each month?
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Its a full 30k each month
 
Nameite said:
Thanks for all the advice and links guys, thats exactly what I needed...a point in the right direction :D

Because of my new job, I'm also learning finance and reviewing company balance sheets and stuff...thought I should also play around a bit with my cash instead of just throwing it into a bank account, so I can learn a bit quicker.

Highly appreciated for the responses

Its a full 30k each month
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Well, seeing as you are reviewing balance sheets and stuff, and have R30k net to invest each month - get a financial adviser. Otherwise, just pm me. I can guarantee you 57% a month return. Terms and conditions apply.
 
At 30k a month you should probably look at getting professional advice.

Ideally the kind that makes their money from charging you per hour rather than trying to sell you products for commission.

On here you can look at the posts on finance from supersunbird. His strategy is boring AF but fundamentally sound.

Looking at tax deductible saving is probably your best bet since you're likely in the top tax bracket
 
r4nd0m said:
I would max. my TFSA contribution locally, so that's 33k right there. You have full access to this money at any time and it's tax-free, so it's a no brainer.
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Sure you can access it any time but you really shouldn’t. Use your TFSA as a long term investment only secondary to your RA.

****

To OP once you’ve maxed out the RA and TFSA avenues I would stick to the JustOneLap logic for long term investment and just do it yourself.

Even inside the TFSA I would do that.

They have a short, medium, long term recommendation at present and that’s up to you to decide but either you look at 5 years at least.

ABSA Stockbrokers is an excellent and cheap and efficient choice at this point. Yes I also hate ABSA but this is w separate and decent entity.

Their long term currently is...

CSEW40 - 40%
SYGWD - 40%
PTXTEN - 20%

This is kind of the least fuss all encompassing balanced ETF options out there covering most bases without getting too involved and offering good returns at low cost.

The medium term option just rebalances it a little bit with NFILBI to counter inflation but it also a 10+ years option.

If you really don’t want to touch it yourself, even on someone else’s recommendation then the next best choice is probably the 10X High Equity fund, however if you don’t have an RA in place I would probably just use them for that. And do the stuff outside of that manually.

Also as a start to educating yourself read Warren Ingham’s Become Your Own Financial Advisor. It’s a short read but will solve most of your concerns.
 
Be aware of fees when choosing investment vehicles. Anything above 1% in total is way too much.
 
SauRoNZA said:
Sure you can access it any time but you really shouldn’t. Use your TFSA as a long term investment only secondary to your RA.

****

To OP once you’ve maxed out the RA and TFSA avenues I would stick to the JustOneLap logic for long term investment and just do it yourself.

Even inside the TFSA I would do that.

They have a short, medium, long term recommendation at present and that’s up to you to decide but either you look at 5 years at least.

ABSA Stockbrokers is an excellent and cheap and efficient choice at this point. Yes I also hate ABSA but this is w separate and decent entity.

Their long term currently is...

CSEW40 - 40%
SYGWD - 40%
PTXTEN - 20%

This is kind of the least fuss all encompassing balanced ETF options out there covering most bases without getting too involved and offering good returns at low cost.

The medium term option just rebalances it a little bit with NFILBI to counter inflation but it also a 10+ years option.

If you really don’t want to touch it yourself, even on someone else’s recommendation then the next best choice is probably the 10X High Equity fund, however if you don’t have an RA in place I would probably just use them for that. And do the stuff outside of that manually.

Also as a start to educating yourself read Warren Ingham’s Become Your Own Financial Advisor. It’s a short read but will solve most of your concerns.
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They now charge an inactivity fee of R35 ex vat. Better to go with EE (and use Thor's bucket) or Sygnia if that's the case.
 
backstreetboy said:
They now charge an inactivity fee of R35 ex vat. Better to go with EE (and use Thor's bucket) or Sygnia if that's the case.
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Why would you be inactive?

Easy Equities where a lot of my stuff is sitting is just getting more and more unreliable.

I’m actually moving away from them towards ABSA Stock Brokers.

EE has been an absolute shambles with managing my kids accounts. They can’t even link them and the entire creation process is by hand behind the scenes where ABSA supports it fully.

Not to mention ABSA supports full low cost stockbroker accounts which you can easily enable if you wanted to go hardcore.

EasyEquities is fine when you are throwing a few hundred rands at it every month but the OP isn’t talking about Mickey Mouse money.
 
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backstreetboy said:
Did you even bother to read the thread I linked to? If OP maxes his TFSA in one go he'll get charged R35 per every 60 days because he can't do any more trades.
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So don't max it out it one go? I really don't see the issue here.

Or pay it into the account and break up the transactions to every 60 days.

Besides at 33k once off and the reduced fees over EE you are probably still breaking even or getting ahead.

It's a small price to pay for a more reliable company handling your money.
 
SauRoNZA said:
So don't max it out it one go? I really don't see the issue here.

Or pay it into the account and break up the transactions to every 60 days.

Besides at 33k once off and the reduced fees over EE you are probably still breaking even or getting ahead.

It's a small price to pay for a more reliable company handling your money.
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Then next year they'll introduce some more new limits. No thanks. Not sure why people still trust Blapsa...
 
backstreetboy said:
Then next year they'll introduce some more new limits. No thanks. Not sure why people still trust Blapsa...
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Dude, you do realise we can now move TFSA's between providers right?

I also have an EE TFSA and an ABSA one. I do recon every few months and the figures on my ABSA TFSA always correlate. There is no fuss or errors.

With my EE TFSA I'm having to account for errors on their part (e.g dividend either too much or too little). Their reporting section is quite crap and the report is laden with zero transactions that you need to sort through.

Good for the average Joe, but not the hobbyist or more serious investor.
 
r4nd0m said:
Dude, you do realise we can now move TFSA's between providers right?

I also have an EE TFSA and an ABSA one. I do recon every few months and the figures on my ABSA TFSA always correlate. There is no fuss or errors.

With my EE TFSA I'm having to account for errors on their part (e.g dividend either too much or too little). Their reporting section is quite crap and the report is laden with zero transactions that you need to sort through.

Good for the average Joe, but not the hobbyist or more serious investor.
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Thank you. Exactly where I'm coming from.

Don't particularly like ABSA but this entity is run very well and you get what you pay for compared to EE. And if you use it like I do you don't pay anyway.

Also EE's teenager marketing is really getting on my tits.
 
r4nd0m said:
Their reporting section is quite crap and the report is laden with zero transactions that you need to sort through.
Click to expand...
They do have a proper reporting now (out in beta) since last year already.

r4nd0m said:
Dude, you do realise we can now move TFSA's between providers right?
Click to expand...
Known it since last year but what does that have to do with me not wanting to pay more or take a cut in compounding interest?
 
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