Paying off your bond vs investing right now

[BusinessTech]

Paying off your bond vs investing right now

We intrinsically know that paying off a bond as soon as possible is a good thing. But how does it compare with other alternatives to building a long-term nest egg?

 

[Lew Skannen]

Investing in the JSE over the next 20-50 years is not an option. There is likely not to be a turnaround in this period of time and possibly long after that. Instead, paying off your bond would be the best thing you can do before your property will be expropriated without compensation.

Investing in other markets in the short term is a massive risk. Global markets are suffering and will do so for the foreseeable future.

Perhaps putting your money into physical gold may not be a bad option.

 

[Speedster]

Investing in the JSE over the next 20-50 years is not an option. There is likely not to be a turnaround in this period of time and possibly long after that. Instead, paying off your bond would be the best thing you can do before your property will be expropriated without compensation.

Investing in other markets in the short term is a massive risk. Global markets are suffering and will do so for the foreseeable future.

Perhaps putting your money into physical gold may not be a bad option.

Is there anything in life you are positive about?

 

[Lew Skannen]

Is there anything in life you are positive about?

Yes, invest in Gold in difficult global conditions. You will do much better with your money.

 

[cguy]

Hmmm... not sure how that one was worked out. Since you don’t get interest tax deductions, your alternative investment would to have a post-tax return greater than the bond to be better at all. In SA, isn’t there a capital gains tax on stock sale? (Dividend tax too, if dividends go to repurchase?)

Even then, the expected return has to be much higher (than the bond interest rate) to justify the risk of a stock market investment.

 

[3WA]

For argument's sake you could invest the money into tax-free savings until you hit the cap, or a retirement annuity. A retirement annuity seems like the best alternate investment to stashing in a bond.