I must be too. I'm really baffled by some people's investment expectations on here. 15% per annum is great. CPI + around 9%!
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Satrix - people still using them?
- Thread starter xrapidx
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I must be too. I'm really baffled by some people's investment expectations on here. 15% per annum is great. CPI + around 9%!
HavocXphere
Honorary Master
ai sometimes I think us fin okes tend towards the conservative a bit too much.
fortune favours the bold & all that.
Hamster
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So since you guys know a lot about this stuff, I'm clearing up some debt middle of this year and want to put that money away else it will just "disappear". Do I just shove it into Satrix every month (Divi and Indi) and forget about it for a good couple of years or are their better options? I want the money to grow over long term but would be nice to have access to it if there is an emergency or opportunity.
EDIT: I'm asking your opinion and not your advice...if that helps with any legal issues.
EDIT: I'm asking your opinion and not your advice...if that helps with any legal issues.
kripstoe
Expert Member
That's not a low return as far as investments go. Saying "anything is better than making R4k" comes across as being greedy.
kripstoe
Expert Member
Many people like the conservative, especially if you have other priorities and don't want to pay much attention to your investments.
There seems to be vastly different definitions on here regarding conservative and aggressive as opposed to in investment circles... Satrix40 would sure as hell not be referred to as conservative. Neither would an investment aiming at a 15% per annum return (or more accurately around 9% in excess of inflation). Part of the role of a scrupulous adviser is managing an investor's expectations. There is no way that anyone should be advising, never mind promising, returns in excess of 20% per annum over the long term.
HavocXphere
Honorary Master
Hamster std advice is clear debt first, then invest since debt usually > invest interest rate wise.
Needs 3 years on the "forget about it" part to clear SARS rules @ CGT vs income...assuming shares.
Money to grow over long term...depends on age. If young go from shares (&assoc dividends) heavy, if older go for interest. If its a large amt...say half a bar then a diff strategy might be appropriate & create own thread for that.
looking at past posters in thread...clintza is legit, on the whole you can listen to his advice without major risk. Alf, SSB & DJ too, tough they approach things from a diff angle than I would - personal preference I guess.
Needs 3 years on the "forget about it" part to clear SARS rules @ CGT vs income...assuming shares.
Money to grow over long term...depends on age. If young go from shares (&assoc dividends) heavy, if older go for interest. If its a large amt...say half a bar then a diff strategy might be appropriate & create own thread for that.
looking at past posters in thread...clintza is legit, on the whole you can listen to his advice without major risk. Alf, SSB & DJ too, tough they approach things from a diff angle than I would - personal preference I guess.
kripstoe
Expert Member
I wasn't referring specifically to Satrix in that specific reply as being conservative. Point I was trying to get across is that a high risk investment (such as the food caravan example) is for someone who knows the risks involved and has a hands on approach with regards to their investment. Whereas a "standard" investment where you put away your money in some form of investment (such as Satrix, or any investment advised by a scrupulous advisor where risks and expected returns are communicated properly) is less hands on. Ie. You know exactly (as per advisor) what you've gotten yourself into.
supersunbird
Honorary Master
Keeping it "liquid" means you are probably earning some 4 to 5% interest rate (hopefully), which would give to some R1100 to R1300 return which is worse than R4000.
And lets not talk about all the effort involved in something else like a food caravan. You will need to pay staff for the food caravan if you dont do run it yourself (and miss other money making oppertunities like your job) . Deal with unhappy customers. Deal with getting supplies. Severe thunderstorm over a lunch hour keeping customers away for a day.
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Like others have said, I dont see how xrapidx investment has done badly.
Sure, you can get better returns by doing some more risky ventures, but that also requires more capital and obviously more risk.
I pump a small amount every month into satrix and forget about it. There is no real goal for the money, its just taking cash i would have spent at the pub and putting it into something that might buy me something nice in 5 - 10 years.
Sure, you can get better returns by doing some more risky ventures, but that also requires more capital and obviously more risk.
I pump a small amount every month into satrix and forget about it. There is no real goal for the money, its just taking cash i would have spent at the pub and putting it into something that might buy me something nice in 5 - 10 years.
Initially it was R1500 a month, R500 to each, then I upped the INDI one to R1500 for a total of R2500 a month... I'm not worried about the returns - it beats the money sitting in a savings account each month... we'll see how its done by same time next year.
Thats quite good going from where I am sitting.
Im just putting R500 a month, with 20% increase per year.
The rest I am putting on my bond, im still a bit scared to put any more into non homeloan "investments"
Well - the return has been double my home loan interest rate.... if you look at the price graph, INDI is currently the best to go for from their product offering, but that could change at any time.
Not totally correct. A liquid investment is one that can be quickly converted to cash without dramatically affecting its price. Now depending on your definition of "quickly", most unit trusts that I am aware of would allow you to convert them to cash within a 5 day period, or sooner. This is not dependent on the portfolio chosen, so it needn't be a money market type unit trust.
Obviously if your intention was only to invest for a very short period of time then a more aggressive portfolio may not be advisable due to market fluctuations.
supersunbird
Honorary Master
Satrix repurchase is 5 days too. But since that is not liquid enough according to Velenosos post, it must mean he is referring to cash, and I'm sure he is.
Take a look at the interest charged on your homeloan. Compare this to the return on your investments. If your returns on your investments exceed your home loan interest, over the long term, then there is no reason you should be scared of investing further funds. Yes, these returns could fluctuate but you are getting rand cost averaging with a recurring investment anyway.
Velenoso
Expert Member
But you have the cash ready when a good opportunity comes by. I guess the 5 day out time frame is not bad, so it's a little better than keeping it in a bank account, but still.
That's the risk you take as an investor. R26k is not too much to risk anyway, if the caravan business fails, so be it. But it could end up making you R1000 a day as well, you could always pop in at lunchtime (if you work full time), grab a hot dog and manage the business this way.
It's better than loosing money but it's not GOOD? I usually aim for 50% return on my money. I've made 100% on my money before, it's not impossible but it involves a much higher risk.
You gotta take a chance.
That's not a low return as far as investments go. Saying "anything is better than making R4k" comes across as being greedy.
That's exactly how it should come across.
Not certain it is advisable to talk about 100% returns, or even 50%, in a thread where others are sharing decent investment returns from "traditional" investments. You create a return expectation for others that exceeds reality and may well lead to them taking on far more risk than they are advised to.
I can also make them 100% return in a few seconds. Go to Suncoast Casino, put the R26k on number 12 on the Roulette table and sit back and pray. Unfortunately there is a little risk that you may lose it all...