Is it safe to keep large amounts of money in your savings account?

[Willie Trombone]

Totally mad. What are we at now? 14.5ish to the dollar?

What were we at a few years back - 6 to the dollar.

Thats what can happen to your money if you leave it in a **** currency like the rand.

The real question is would you take financial advice from someone who doesn't understand what a few is.
The Rand hasn't been 6 to the dollar in over a decade. You'd have to go back 15 years for that.

 

[chrisc]

Better in a bank than under the mattress
(Or as I saw once, in a plastic bag in the fridge vegetable drawer)

 

[RonSwanson]

I'm heavily invested in gold, which I have buried in several different locations around Pawnee.

 

[PseuDohNom]

Alternatively if you have a flexi bond dump it in there, another thing I do to eliminate as much interest as possible.

Flexi bond is actually the best spot pull out as and when you need the funds.

Would you mind elaborating a little on this please? Trying to get money out without paying 40%+ tax will be my next hurdle.

Do you just withdraw it into an access bond? Sorry, in unfamiliar with Flexi bond. And how does it offset taxable income?

Thanks Snyper.

 

[Messugga]

Would you mind elaborating a little on this please? Trying to get money out without paying 40%+ tax will be my next hurdle.

Do you just withdraw it into an access bond? Sorry, in unfamiliar with Flexi bond. And how does it offset taxable income?

Thanks Snyper.

It doesn't offset taxable income. Once you sell your crypto, that triggers a CGT event and you're liable for taxes.

 

[Willie Trombone]

Would you mind elaborating a little on this please? Trying to get money out without paying 40%+ tax will be my next hurdle.

Do you just withdraw it into an access bond? Sorry, in unfamiliar with Flexi bond. And how does it offset taxable income?

Thanks Snyper.

Flexi bond=Access bond.
You have ot sit there reducing your interest while it's available to withdraw at any time. No tax implications.

 

[Snyper564]

It doesn't offset taxable income. Once you sell your crypto, that triggers a CGT event and you're liable for taxes.

Slightly incorrect, once you sell your crypto you trigger either income tax/CGT there is a massive discussion on this already. 95% of ppl would be income tax and 5% CGT, if you go the CGT route better be ready to argue it. You only trigger tax on your profit not the whole amount.

I myself buy and sell frequently and fall into income tax.

Using the bond doesnt mitigate any tax whatsoever I just store all my profits in my bond till I need funds for the next round.

Its just making the most of the money instead of sitting in a low interest rate savings acc I place it in my bond to reduce interest. Not related to tax at all.

@PseuDohNom see above

As noted flexi bond = access bond just different names used by different banks

 

[SauRoNZA]

Would you mind elaborating a little on this please? Trying to get money out without paying 40%+ tax will be my next hurdle.

Do you just withdraw it into an access bond? Sorry, in unfamiliar with Flexi bond. And how does it offset taxable income?

Thanks Snyper.

Tax you need to pay either which way, no getting away from that.

He didn’t say it offsets tax, he said offsets interest by working against the debt that is your home loan.

 

[Leisure Larry]

I bought physical gold/silver/platinum. I managed to get these for R100k each, after negotiations because of the large quantity that I ordered.

Rand Refinery 100g Gold Bar – IBV Gold Online

www.ibvgoldonline.co.za

You can get these for around R18k per kilogram if you negotiate:

1kg Fine Silver MC Cast Bar – IBV Gold Online

www.ibvgoldonline.co.za

Buying this is easy.
But where oh where do we stash it?

 

[Aghori]

Buying this is easy.
But where oh where do we stash it?

It's not too much of storage space so I rent a small-ish safety deposit box from Union Vault (They're in Pretoria). Free insurance for the contents of the box of a million rands , or the option of increasing it for a fixed monthly premium.

 

[Leisure Larry]

It's not too much of storage space so I rent a small-ish safety deposit box from Union Vault (They're in Pretoria). Free insurance for the contents of the box of a million rands , or the option of increasing it for a fixed monthly premium.

.... And sell to who when you need to?
Quite a mission to find a buyer and sell with risks involved.

 

[Thor]

Safe, yes, wise, no.

Your money lose value in the bank every day. It's called inflation and in South Africa it's out of control because the ANC government destroyed the ZAR.

You don't want ZAR.

 

[Speedster]

Safe, yes, wise, no.

Your money lose value in the bank every day. It's called inflation and in South Africa it's out of control because the ANC government destroyed the ZAR.

You don't want ZAR.

Do you know what the inflation rate was before the ANC took over?

 

[Aghori]

.... And sell to who when you need to?
Quite a mission to find a buyer and sell with risks involved.

Why would I want to sell my precious metals?

It's an investment that will go to my family after my eventual demise due to excessive drug/alcohol/prostitutes/violent lifestyle.

 

[Snyper564]

Why would I want to sell my precious metals?

It's an investment that will go to my family after my eventual demise due to excessive drug/alcohol/prostitutes/violent lifestyle.

I don't think that's the point that you won't sell it the question was who would buy it...

 

[Aghori]

I don't think that's the point that you won't sell it the question was who would buy it...

You melt it down, make it into jewelry and sell it at an inflated price. I probably made a coupla bars profit doing that over the years.

 

[airborne]

You melt it down, make it into jewelry and sell it at an inflated price. I probably made a coupla bars profit doing that over the years.

Do you have a Jewellers precious metals license?

Because melting gold without one will get you in deep sht if the the wrong people find out.

 

[/dev/null]

Safe, yes, wise, no.

Your money lose value in the bank every day. It's called inflation and in South Africa it's out of control because the ANC government destroyed the ZAR.

You don't want ZAR.

What if the interest in OP savings account beats rate of inflation?

 

[richjdavies]

What if the interest in OP savings account beats rate of inflation?

After tax though?

 

[Snyper564]

After tax though?

Taking this into account too:


Interest received by or accrued to an individual is taxable. However, an exemption applies to the first ZAR 23,800 of local interest income (ZAR 34,500 for taxpayers who are 65 years of age or older)