My first job & Unit trusts

PPLdude

PPLdude

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Ill keep it short.

I have my first job and I can save R5000 p.m after expenses.

Besides making an emergency fund, it is worth putting some cash into a unit trust every month?

Will my measly 5k p.m return some nice gains?

Or am I better putting a bit less into the volatile world of cryptocurrency (Mostly altcoins) -- go antshares!!!
 
R5000pm is a great start. I wish I could have saved that during my 1st job!

You can look at something like satrix, or even long term investment in JSE stocks via something like easy equities, depending on your ultimate goal?

It all depends how much risk you are willing to take and how long you want to invest. I can't comment on cryptocurrency, but I am sure others will!
 
I like the idea of high risk high reward. I wouldn't put all my money into something like that, but I would be comfortable putting about 1/3 of it.
 
dunkyd said:
Dont complicate. 1 thousand into each of Allan Grays top 5.
Click to expand...
I just came across this thread by luck. Please elaborate what you mean? Im at my first job as well and in a month I save about R10k on average. I'm planning on getting a car soon, I think I'll be able to save R5k after it. How can I invest it?

Sent from my SM-G610F using MyBroadband mobile app
 
ETFs like the Satrix 40 tend to outperform unit trusts over the long due to lower costs. Also open up a tax free savings account, you are allowed to invest a maximum of R33000 per year completely tax free.
 
static_sa said:
Ill keep it short.

I have my first job and I can save R5000 p.m after expenses.

Besides making an emergency fund, it is worth putting some cash into a unit trust every month?

Will my measly 5k p.m return some nice gains?

Or am I better putting a bit less into the volatile world of cryptocurrency (Mostly altcoins) -- go antshares!!!
Click to expand...

OK, so first of, the emergency savings, make it at least 3 months of net salary.

My emergency savings are in low risk unit trusts (see, there are many types of unit trusts), half Coronation Strategic Income and other half Coronation Global Strategic USD Income [ZAR] Feeder.

Then once you have that you can look into other things.

One must diversify, so yes, decide what amounts you want to put where

Retirement might seem far away but maybe start putting away some per month into a Retirement Annuity (R1000?).

And then maybe R2000pm into a Tax Free Savings Account (ETFs or unit trusts) and another R1000pm into a equity unit trust maybe (it can be seen as second tier emergency saving, to be access before one has to dip into TFSA, which should be savings of last resort, or that R1000 can be seen as eventual house deposit savings too).

And use the last R1000 for playing money for crypto currencies.
 
Jeez to have R5000 a month and not put it into retirement seems utterly illogical.

Even if you took the tax return as "profit" and use that to buy any toys etc.

Unless this "measly" R5k is above and beyond the full retirement contribution already, then that changes everything.
 
supersunbird said:
OK, so first of, the emergency savings, make it at least 3 months of net salary.

My emergency savings are in low risk unit trusts (see, there are many types of unit trusts), half Coronation Strategic Income and other half Coronation Global Strategic USD Income [ZAR] Feeder.

Then once you have that you can look into other things.

One must diversify, so yes, decide what amounts you want to put where

Retirement might seem far away but maybe start putting away some per month into a Retirement Annuity (R1000?).

And then maybe R2000pm into a Tax Free Savings Account (ETFs or unit trusts) and another R1000pm into a equity unit trust maybe (it can be seen as second tier emergency saving, to be access before one has to dip into TFSA, which should be savings of last resort, or that R1000 can be seen as eventual house deposit savings too).

And use the last R1000 for playing money for crypto currencies.
Click to expand...

So its not necessary to have your emergency fund as liquid cash? These low risk unit trusts can be sold in emergency cases?
 
Dylan_G said:
So its not necessary to have your emergency fund as liquid cash? These low risk unit trusts can be sold in emergency cases?
Click to expand...

Settlement may be a few days after sale. Not ideal if you have to have money right now. But that's why overdrafts and credit cards are great, if you have financial discipline.
 
SauRoNZA said:
Jeez to have R5000 a month and not put it into retirement seems utterly illogical.

Even if you took the tax return as "profit" and use that to buy any toys etc.

Unless this "measly" R5k is above and beyond the full retirement contribution already, then that changes everything.
Click to expand...

My advise is assuming that the employer is already deducting 15%. If not, indeed 20% of income must be put into RA.
 
Dylan_G said:
So its not necessary to have your emergency fund as liquid cash? These low risk unit trusts can be sold in emergency cases?
Click to expand...

Maybe have one month as cash if you want, but the 2 or 3 days it takes to pay out gives one a decent cooling off period so you don't spend it on non emergencies.
 
static_sa said:
Ill keep it short.

I have my first job and I can save R5000 p.m after expenses.

Besides making an emergency fund, it is worth putting some cash into a unit trust every month?

Will my measly 5k p.m return some nice gains?

Or am I better putting a bit less into the volatile world of cryptocurrency (Mostly altcoins) -- go antshares!!!
Click to expand...

Don't throw away the Capitec account.
 
supersunbird said:
My advise is assuming that the employer is already deducting 15%. If not, indeed 20% of income must be put into RA.
Click to expand...
Currently R500 into RA. I selected "aggressive", what ever that means.

SauRoNZA said:
Jeez to have R5000 a month and not put it into retirement seems utterly illogical.

Even if you took the tax return as "profit" and use that to buy any toys etc.

Unless this "measly" R5k is above and beyond the full retirement contribution already, then that changes everything.
Click to expand...

What can I google to find out more on RA and tax return in South Africa?
Is there any way I could calculate the amount of tax return?
 
My first job & Unit trusts

static_sa said:
Currently R500 into RA. I selected "aggressive", what ever that means.
Click to expand...

Way too little of you still have R5000 spare on top of that.

Aggressive = Higher Risk.

Perfectly fine at your age. Generally lower the risk when you get within 5 years of retirement.


What can I google to find out more on RA and tax return in South Africa?
Is there any way I could calculate the amount of tax return?
Click to expand...

SARS and RA would do the job.

Good start here.

https://www.taxtim.com/za/blog/reti...march-2016---how-sars-new-changes-affect-you-

You get put up to 27.5% of your pensionable salary towards RA/Pension. And then get a rebate for it which is quite a chunk of change which you can then re-invest or consider a “bonus” of sorts if you like.

It definitely can be calculated but I’m never that hard up for it.

Just bear in mind that RA money would be locked down until retirement age so you kind of need an invest plan towards Short, medium and Long term to figure out where you want to put the money.
 
Last edited:
Buy ETFs

And 5k is a hell of a lot to be able to save every month compared to most people
 
Visit justonelap.com and listen to the fat wallet show podcasts. It's for people like us that is new to investing in the South African market. Also visit platinumwealth co.za and you could learn quite a bit from that website. When asking the question like you did it becomes overwhelming with everyone's input and can become more confusing. I would suggest you just save your money in a normal bank account for now until you have done some research yourself. There is also a little ebook that was published by Thor187 which was very helpful when i first started out this year.
 
openSource007 said:
I just came across this thread by luck. Please elaborate what you mean? Im at my first job as well and in a month I save about R10k on average. I'm planning on getting a car soon, I think I'll be able to save R5k after it. How can I invest it?

Sent from my SM-G610F using MyBroadband mobile app
Click to expand...
Easy enough. Chose their top 5 funds over 5 /10 years. Fill in form online. Set up banking details. Hit "enter". Relax, live a bit, check values every 3 months. Smile.
 
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