MyBB Stokvel

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Keeper said:
i don't see why the last person would get "interest" though as they money doesn't build up over time but is withdrawn every month?
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Correct. Even if there was interest it would be negated by bank charges/admin fees depending on what you do with it.
 
I don't see the point of these things - there is no "magical" way to turn R50-00 into R5000-00 unless you're contributing. essentially you are setting yourself up for a loan, and if you bugger off, then everyone else is lumped paying off your debt. Will never work on the forum.

Blu, the interest over such a short duration will be negligent. And actively managing such a small investment is not financially viable. And you need a fairly liquid investment as well...
 
Reading hj2k_x's expose on stokvels, I guess it was just one of the oldest forms of community banking ... and not entirely suited for us :(
 
why the name "stokvel" though?

want as jy nie betaal nie slat ons jou met 'n stok tot die velle spat!
 
blunomore said:
Reading hj2k_x's expose on stokvels, I guess it was just one of the oldest forms of community banking ... and not entirely suited for us :(
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Yeah, I am starting to think the same :p

I guess if you got a lot of cash together and then made a withdrawal only at the end of the year, then you'd get a lot of interest together...
 
You guys fail to see if there are a 1000peeps... Each give R1 that is R1k a month for 1person but* person 1000 will wait 1000month before he could claim!
 
Oh and by the time person 1000 has payed R1 for a 1000 months he only gets back the 1000 he invested! Hahaha what a stupid scheme hey? So only the first guy pays R1 and gets a R1k then every person after him will have to wait 1 month longer and would have payed lets say for 3 months so thats R3 payed. He gets his 1k but it cost him R2 more than the first guy. Now with ever passing month you will get less! So if the first guy is still paying or forced to pay by the time he has payed his 1001th turn to be 1st
 
So now the first guy has lost 1k! To make up for the 1k he had first, this will go around some one is going to ow 1000 and a a other guy before him 999 and so on. So if you keep the withdraw rates and invest the same you will always be in dept or be owed. Kind of sucks ya know rather invest in a insurance company that pays out over 5years+ 1 limited withdraw before the 5years and as much as you want to withdraw after the 5 of your total savings and intrest. They invest the money and you will get it back.
 
Assuming that the contributions to the stokvel do not accrue interest then the premise of a stokvel is flawed under modern financial systems - particularly with regards to the issue (and power) of compound interest.

If either the monthly contributions or number or contributors grow large enough then the opportunity cost of the foregone interest would be incrementally larger for each successive contributor i.e. The person receiving the first lump-sum payment would benefit the most, whilst the last person would be screwed royally...

Consider this: 12 people who each contribute 1k/month with the caveat there exists a bank where you could get 8% p.a return on cash (for example)

So to value your worth today (quick & dirty eg - the bank would not calculate interest accrued this way, but it's close enough):

Person 1: would get 12k immediately, therefore he is worth 12k! Great!
Person 12: would only be worth 12k/1.08 = 11111.11....a loss of cR889 - this is the time value of money concept

Even if we take away the assumption that we can't earn interest at a bank, there remains an element of inflationary risk that will erode/benefit the value of the investment.
 
From my side - let an independent person arbitrate this stokvel and not a moderator/member of this forum, otherwise things might get ugly, with some name-calling and bannings.

Also, another problem will be in whose account will this money be deposited? And the taxman surely will be watching said account like a hawk....
 
As I said last night, I think this was more suited for the 'unbanked' people. Also, I think the idea was not necessarily to make profit, but to encourage saving, as opposed to squandering one's money.

Anyhow, I am doing that as far as my own financial affairs are concerned (saving, not squandering!), so let's keep the status quo.
 
hj2k_x said:
LOL. There is no magic.

*googles furiously.
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you get the same money if you were saving it on your own. the only thing a stockvel does is to give you access to the money you would have save quicker and people feel obligate to pay that x amount every month to someone then to save it themselves...

the only thing is that you need people that are disciplined because most stockvel end over time...

people don't pay their cars and houses what makes you think they will pay the stockvel?:p
 
koeks said:
you get the same money if you were saving it on your own. the only thing a stockvel does is to give you access to the money you would have save quicker and people feel obligate to pay that x amount every month to someone then to save it themselves...

the only thing is that you need people that are disciplined because most stockvel end over time...

people don't pay their cars and houses what makes you think they will pay the stockvel?:p
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Stockvel? Is this a new concept ? :)
 
there is no profits on stockvels...
like someone already said. you take R500 and there is 5 of you...

so it means you get R2000 when it's your turn.... your turn comes after 4 people...

it's the same as saving R500 for 4 times = R2000
 
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