Investment help please

OP: Double check with your car financier/lender whether your interest is simple or compounded. AFAIK they're all simple. What this means is that no matter how much extra you put in, you'll still pay the same total interest, the only thing that will change is how soon it'll be paid off. If it's compounded on the other hand, then yes, it will save you by paying extra.

EDIT: Never mind, just did some browsing, it's compound too.

As for investment. The first and foremost one I'd recommend is someone who can effectively teach you self-control because of this:
i know if i pay of my car I'll just adjust my living standard and will never force myself in saving....
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As for Capitec, the reason for their relatively high interest rates on < R10k is exactly that, to attract the low-income crowd. If they kept it 6% at sums > R100k they'd have very weak margins and will be playing with the prospects of a net-loss fiscal year. Giving 6% for the < R10k means that a relatively small amount of money will they actually have to pay back 6% on, unlike the big amounts.
 
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Hamster said:
Doubt it. You have one Global Account with them to which you can link up to 5 (iirc) fixed deposit accounts.

Can have up to 4 linked savings accounts under your one card, I have 4 savings accounts with them just keep each one at R9999.00 and on the 1st of every month in the morning I move the interest to another account. On average each account brings in like R40-R50 per month and costs R1.50 to EFT to another account.

I like it cos it's a decent enough amount of money to have liquid in case of emergencies.
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OP, if you have a lump sum to invest, forget bank interest. You WILL loose money over time taking inflation into consideration.
Go to www.imaraspreid.co.za and register. Send your FICA docs to them. It's a pain I know, but you will get over it. Deposit your money into your account. You will be registered on the JSE and will get interest more than any bank while you not investing.
Now it is easy as you can invest even with your cell phone. Or call your broker. Ask for advice etc. You will be allocated a broker that you will get to know personally.
Just do this. You will not be sorry. You can have a Managed Account that does well over 30% or pick your own shares.
I was with a Managed Account but now do my own and 60% PA is my average and expect to do better this year.
 
marco said:
OP, if you have a lump sum to invest, forget bank interest. You WILL loose money over time taking inflation into consideration.
Go to www.imaraspreid.co.za and register. Send your FICA docs to them. It's a pain I know, but you will get over it. Deposit your money into your account. You will be registered on the JSE and will get interest more than any bank while you not investing.
Now it is easy as you can invest even with your cell phone. Or call your broker. Ask for advice etc. You will be allocated a broker that you will get to know personally.
Just do this. You will not be sorry. You can have a Managed Account that does well over 30% or pick your own shares.
I was with a Managed Account but now do my own and 60% PA is my average and expect to do better this year.
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Thanks for the reply!!
I had a look at the site, and to be honest, I have absolutely no idea whats going on there, my broker (from SASFIN) is coming to see me on Wednesday, maybe he can inform/help me with this!!, the whole JSE with its Bulls and Bears scares the hell out of me, I’ll rather leave this for someone that actually knows what’s he is doing
 
NBS said:
Thanks for the reply!!
I had a look at the site, and to be honest, I have absolutely no idea whats going on there, my broker (from SASFIN) is coming to see me on Wednesday, maybe he can inform/help me with this!!, the whole JSE with its Bulls and Bears scares the hell out of me, I’ll rather leave this for someone that actually knows what’s he is doing
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:D

Ya hey :D I used to feel that way about markets & investments :o But I have a desire to know what's going on & understand these high risk high returns playing fields so i have started just last year to educate myself with the basics. Hope one day I'll be as sharp as most guys in this forum & use that knowledge to my advantage. Take it one step at a time :)
 
IF you are not going to go high risk then definitely pay off your car.

Then just set up a debit order to pay in to a call account, make it equal to the value of your car payment. This will force you to keep saving.

Once you have another lump sum, put that in to a more permanent investment, but just keep out of debt !
 
Nerfherder said:
IF you are not going to go high risk then definitely pay off your car.

Then just set up a debit order to pay in to a call account, make it equal to the value of your car payment. This will force you to keep saving.

Once you have another lump sum, put that in to a more permanent investment, but just keep out of debt !
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The problem is even if i pay the money into my car i will still owe +- R40k.
I'll talk to my broker regarding the "high risk" option, if i can take like 20 - 40% interest per year, i'll definitely consider it!!
 
Cadre said:
:D

Ya hey :D I used to feel that way about markets & investments :o But I have a desire to know what's going on & understand these high risk high returns playing fields so i have started just last year to educate myself with the basics. Hope one day I'll be as sharp as most guys in this forum & use that knowledge to my advantage. Take it one step at a time :)
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i even tried registering on the JSE site to try out the "demo", man, i had no farking idea what was going on their, obviously i'm not English, most of you can probably tell, but i cant even pronounce half the words on that site, wish they would provide a day course somewhere on the JSE.
 
Consider this though... lets say you got a R200k car.

When you financed it your finance charges could have been easily R100k. I know most of that has probably been covered but of that 140k you still owe you could easily be paying R40k in interest. So work that out.
If you dump the 100k on the car and pay off the rest of the car in a year or so you could free up all that cash and you save 40k.

So even though you don't have the 40k, you still get a 40% return on your investment.
 
Just an update to this thread:

Given the recent economic happenings, cash & commodities seem to be a really inviting investment at the moment (other than starting a business). We're well headed for a second recession dip so the possibility of you tanking with putting money into equities and ETFs is quite realistic.
 
Nerfherder said:
Consider this though... lets say you got a R200k car.

When you financed it your finance charges could have been easily R100k. I know most of that has probably been covered but of that 140k you still owe you could easily be paying R40k in interest. So work that out.
If you dump the 100k on the car and pay off the rest of the car in a year or so you could free up all that cash and you save 40k.

So even though you don't have the 40k, you still get a 40% return on your investment.
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No ways is a car an investment. Much like a primary house, they are Lifestyle EXPENSES.
 
UnUnOctium said:
Just an update to this thread:

Given the recent economic happenings, cash & commodities seem to be a really inviting investment at the moment (other than starting a business). We're well headed for a second recession dip so the possibility of you tanking with putting money into equities and ETFs is quite realistic.
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Cash yes at the moment. Commodities no. Gold now thinks it is an equity and behaves as such. We in for a long volatile term and should go down somewhat. Stick to cash for a while.
As to starting a business. No ways now. People just don't have spare money. Petrol and food has gone sky high.
 
Nerfherder said:
Consider this though... lets say you got a R200k car.

When you financed it your finance charges could have been easily R100k. I know most of that has probably been covered but of that 140k you still owe you could easily be paying R40k in interest. So work that out.
If you dump the 100k on the car and pay off the rest of the car in a year or so you could free up all that cash and you save 40k.

So even though you don't have the 40k, you still get a 40% return on your investment.
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Where is the investment? What will you pocket after 5 years? What will your car be worth after 5 years? You are, I'm sorry to say, a looser.
Unless you change your mindset, you will stay a looser. I had the same thoughts as you when I was young and stupid.
As I'm now older, I can see why my "investment" in cars did not work. I thought I was clever when bought all those cars the same as you. I now realize how much money I had lost with the cars compared to if I had invested wisely.
 
marco said:
Where is the investment? What will you pocket after 5 years? What will your car be worth after 5 years? You are, I'm sorry to say, a looser.
Unless you change your mindset, you will stay a looser. I had the same thoughts as you when I was young and stupid.
As I'm now older, I can see why my "investment" in cars did not work. I thought I was clever when bought all those cars the same as you. I now realize how much money I had lost with the cars compared to if I had invested wisely.
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It's "loser" you loser :D
 
NBS said:
i even tried registering on the JSE site to try out the "demo", man, i had no farking idea what was going on their, obviously i'm not English, most of you can probably tell, but i cant even pronounce half the words on that site, wish they would provide a day course somewhere on the JSE.
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The demo account is a good tool use to get the feel of the markets.

Try out the free seminar by IG Markets http://www.igmarkets.co.za/cfd/live-seminars.html

I have attended one of these, it is somewhat informative.
 
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marco said:
OP, if you have a lump sum to invest, forget bank interest. You WILL loose money over time taking inflation into consideration.
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One can get 8.50% on R100 000+ for 49 months at capitec these days.

marco said:
Go to imaraspreid... Deposit your money into your account. You will ... get interest more than any bank while you not investing.
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How much round about?
 
froot said:
Taking for example, I have some of my funds invested at Absa's Managed Funds
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I had money sitting with ABSA Investments (AIMS) for a few years until I reached a certain age (it was left to me). They charged me some horrendous fee on maturity of the money ... so I mailed them and asked why it was so high etc. All they replied was 'you signed for it ...'

Took it straight away and I'll NEVER use or recommend ABSA for investing
 
ld13 said:
One can get 8.50% on R100 000+ for 49 months at capitec these days.



How much round about?
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My bond is 7%. Is it worth putting money from bond into this account??!
 
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