Securing a future in 2020

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Dames

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So with everything going on around us at the moment, it’s made me really contemplate the future and how best to keep oneself financially secure enough to deal with what may come. There is so much variance in opinion of the economic outlook (locally and globally) that honestly, I really don’t know what the solution is anymore. Do you keep your wealth (if you have any) invested into markets either local or offshore, do you invest in gold, do you invest in property which is relatively affordable at the moment? Do you keep cash? Has anyone else been thinking a lot about this as well - what are some of your plans?

I’m very fortunate to have some savings already, and they’re currently invested in predominantly offshore funds through Allan Gray, but I’m starting to wonder if I should be re-thinking this. Just don’t know what the safest and best option is at the moment - and I suppose a lot of people will say you simply can’t really ever know!

Would be interested to see what the MyBB community’s thoughts are on this.
 
Dames said:
So with everything going on around us at the moment, it’s made me really contemplate the future and how best to keep oneself financially secure enough to deal with what may come. There is so much variance in opinion of the economic outlook (locally and globally) that honestly, I really don’t know what the solution is anymore. Do you keep your wealth (if you have any) invested into markets either local or offshore, do you invest in gold, do you invest in property which is relatively affordable at the moment? Do you keep cash? Has anyone else been thinking a lot about this as well - what are some of your plans?

I’m very fortunate to have some savings already, and they’re currently invested in predominantly offshore funds through Allan Gray, but I’m starting to wonder if I should be re-thinking this. Just don’t know what the safest and best option is at the moment - and I suppose a lot of people will say you simply can’t really ever know!

Would be interested to see what the MyBB community’s thoughts are on this.
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MTI
 
My 'wealth' (haha I have so little, but give it time) is mostly offshore apart from the company mandated pension fund I have to invest in. I also have my TFSA, but that's also invested in offshore ETFs.

There's more options in the American market than what we're used to over here including lower expense ratios. No tax breaks though, but it's good to have value in the dollar / reserve currency.

With covid happening there's the uncertainty of the Fed bailing out companies (they keep propping up the market) and printing money to keep things afloat (thereby devaluing the dollar). The Fed will do what they need to in order to keep things sustainable.

Look into some recent talks by Ray Dalio regarding the best place to invest. It's in stores of value, which isn't necessarily gold, but something that is of tangible worth.

Strategy: Stocks like medical, staples, food, etc...
Strategy: Buy up the big guys buying up the little guys (FAANG)
Strategy: Prospect on future possiblities (Biotech, Tesla, etc...)
Strategy: Look at battery tech and commodities
Strategy: Look at nuclear power and commodities
Strategy: Think about China becoming a dominant power along side, maybe even surpassing the US.

I'm an index investor, so I don't concern myself with companies specifically, rather I choose to focus on sectors.

Diversify not just geographically, but across industries too. Look at Paul Merriman's 'ultimate buy and hold' portfolio for a nice weighting.

Unfortunately I hold no commodities, but I have REITs both local and abroad.

Buffet said to buy when people are fearful and perhaps now is a good opportunity, but that little man on the other side of your shoulder is saying "but what if they're (the doomsayers) right?".

Just expect flat markets and returns until this pandemic gets resolved. With a market this flat, buying opportunities are plenty for those with cash.

My 2c.
 
One last thing to add.

Invest in yourself.

Your health (otherwise what's the use of saving and investing all that money?)
Your career (study something that will increase your remuneration or happiness)
A business (also an investment if you have the acumen and drive for it)
 
Avoid debt and pay off the debt you have as fast as possible, and have some money for a rainy day is the best advice I have received. Sometimes a lot of things hit you all at once making a super crises and if at that point you have big debt repayments it can be a real issue. Anyways, managed to get debt free just before I turned 40 last year, and am now building up some savings with the goal being that I have enough to keep going with no change in lifestyle for a year in the event of being unemployed. That requires me to save up about 30% of annual cost to company as so much stuff would fall away or be frozen if I had no income, its just really the essentials and bills.
 
Cius said:
Avoid debt and pay off the debt you have as fast as possible, and have some money for a rainy day is the best advice I have received. Sometimes a lot of things hit you all at once making a super crises and if at that point you have big debt repayments it can be a real issue. Anyways, managed to get debt free just before I turned 40 last year, and am now building up some savings with the goal being that I have enough to keep going with no change in lifestyle for a year in the event of being unemployed. That requires me to save up about 30% of annual cost to company as so much stuff would fall away or be frozen if I had no income, its just really the essentials and bills.
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Luckily I’m also living debt free at the moment -massive weight off shoulders that’s for sure! Good advice, thanks.
 
Dames said:
So with everything going on around us at the moment, it’s made me really contemplate the future and how best to keep oneself financially secure enough to deal with what may come. There is so much variance in opinion of the economic outlook (locally and globally) that honestly, I really don’t know what the solution is anymore. Do you keep your wealth (if you have any) invested into markets either local or offshore, do you invest in gold, do you invest in property which is relatively affordable at the moment? Do you keep cash? Has anyone else been thinking a lot about this as well - what are some of your plans?

I’m very fortunate to have some savings already, and they’re currently invested in predominantly offshore funds through Allan Gray, but I’m starting to wonder if I should be re-thinking this. Just don’t know what the safest and best option is at the moment - and I suppose a lot of people will say you simply can’t really ever know!

Would be interested to see what the MyBB community’s thoughts are on this.
Click to expand...
2020 is almost over. You might want to secure 2021 and beyond.
 
Dames said:
Luckily I’m also living debt free at the moment -massive weight off shoulders that’s for sure! Good advice, thanks.
Click to expand...

You could always do what stupid us did ..... we are debt free, so, rented the house out, got a job off shore and and took a working holiday.
Nice to have $$$ rather than ZAR in my grubby paws.

Was going to be a longer term thing, but a few viruses pitched up, one Chinese, one Republican .... so looking at possibly a year in India or maybe Australia ...... see what fate dishes out.

I think sometimes we plan so much for ou dae - we forget to live.
At 40, you have time and age on your side.
 
Cius said:
Avoid debt and pay off the debt you have as fast as possible, and have some money for a rainy day is the best advice I have received. Sometimes a lot of things hit you all at once making a super crises and if at that point you have big debt repayments it can be a real issue. Anyways, managed to get debt free just before I turned 40 last year, and am now building up some savings with the goal being that I have enough to keep going with no change in lifestyle for a year in the event of being unemployed. That requires me to save up about 30% of annual cost to company as so much stuff would fall away or be frozen if I had no income, its just really the essentials and bills.
Click to expand...
Finally got myself out of a bad overdraft situation. Took a few months, but now onto other things.
 
One other point is to try secure a job that is as recession proof and virus proof as possible.

Recession proof: Company doesn’t depend on the general population having free capital.

Virus proof: Can work at home, and company doesn’t require in-person interactions with other staff or customers.
 
In terms of investments - rental property is something to be careful of, but for those reasons there may be some deals. Target middle income/professional tenants (who are likely to remain employed in the current situation) and ideally don’t leverage it.

Don’t invest in volatile markets beyond your stress tolerance - equities is a relatively small part of my portfolio, but I was nevertheless having heat attacks all through March. This is just a mental health thing.

Being in SA, it’s probably best to invest globally and diversify for stability (asset classes and countries).
 
cguy said:
One other point is to try secure a job that is as recession proof and virus proof as possible.

Recession proof: Company doesn’t depend on the general population having free capital.

Virus proof: Can work at home, and company doesn’t require in-person interactions with other staff or customers.
Click to expand...

Debt collection business is doing really well :X3:
 
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