South African Mr Money Mustache?? early retirement guru

[airborne]

I used to spend quite a lot of time on these things, but not anymore.

As I said my focus has tended to social initiatives.

It's not easy money trading goods off of those platforms, you have to have your wits about you and a very good idea of value. Else you will get burnt to a crisp in short notice!

 

[saturnz]

It's not easy money trading goods off of those platforms, you have to have your wits about you and a very good idea of value. Else you will get burnt to a crisp in short notice!

I developed good relationships with many of the people I did business with, especially those on the forums. When I would go to Jo'burg for work I would even stay at their homes during my stay.

In saying that I've got burnt a few times yes, but overall the experience was still extremely positive.

Your idea of value comes from your knowledge on the item, you would have a knowledge on the item because you have an interest in it. To give another example, my knowledge on turntables arises from my interest in vinyl and music collection.

 

[Thor]

So you need money to make money situation

 

[saturnz]

So you need money to make money situation

only the reserve bank can make money

 

[d0b33]

Here's a question I've been pondering... say you had a million rand... is there a good enough of an investment account that could return a good portion if interest per month to live off?

 

[supersunbird]

Here's a question I've been pondering... say you had a million rand... is there a good enough of an investment account that could return a good portion if interest per month to live off?

If you can live on R4000 per month (just just growing with inflation) for 20 years... sure there is.

 

[d0b33]

If you can live on R4000 per month (just just growing with inflation) for 20 years... sure there is.

Hmm, I was think something like a 32 day notice account would attract more interest... then again, tax would also take a cut.

 

[Billy]

Hmm, I was think something like a 32 day notice account would attract more interest... then again, tax would also take a cut.

I think that you need to look at the Mr Monet Mustache site. Your 32 Day deposit will not cover inflation.

 

[supersunbird]

Hmm, I was think something like a 32 day notice account would attract more interest... then again, tax would also take a cut.

Tax and sustainability. If you take more you and the capital amount can't grow to withstand inflation its purchasing power will keep falling every year.

2 x R500 000 rental property units will give you more perhaps, but has its own risk and issues.

 

[ronz91]

Definitely possible to do this in SA. Achieved FI recently after wife and I saved and invested two-thirds of after-tax income&bonus since varsity. MMM is a great resource.

Now work is because it's interesting/challenging and to look at building up the asset base to build up a few other buffers, namely for parents to retire, some capital for businesses I'd like to fund, fun stuff, and just because.

Any tips on what investment vehicles you used?

 

[ronz91]

I think that you need to look at the Mr Monet Mustache site. Your 32 Day deposit will not cover inflation.

What are best compounding savings accounts available in SA?

 

[gimpex]

What are best compounding savings accounts available in SA?

I think probably the only ones that should at least keep up with inflation are the RSA retail bonds , also depending on your tax bracket.

To outperform inflation you would need to take on some risk. There are many options from the more traditional ones like unit trusts , equity , property ,etc to more creative ones through local or foreign banks ( return depends on performance of an indicator with some downside and upside limits ).

 

[whatwhat]

What are best compounding savings accounts available in SA?

Time.

It doesn't matter where you put it, start as soon as you can.

 

[supersunbird]

What are best compounding savings accounts available in SA?

How accessible must the cash be?

 

[hj007]

Any tips on what investment vehicles you used?

I store most of my investments (>70%) in low-cost index trackers, such as SA top 40 and then MSCI World-linked index tracker (something like DBXWD). The simpler the better - and low cost or tax consequences.

 

[SauRoNZA]

I store most of my investments (>70%) in low-cost index trackers, such as SA top 40 and then MSCI World-linked index tracker (something like DBXWD). The simpler the better - and low cost or tax consequences.

If it's tied up in those how do you draw money from them?

Or is that the other 30%?

 

[gimpex]

Time.

It doesn't matter where you put it, start as soon as you can.

Say what ??

If it earns below inflation the longer you keep it the worse it gets !

 

[TheBadMadMan]

I must be honest, Saturnz is not always the most popular guy on the forums I've come across but it would appear he knows what he is doing...

Well done budd.

 

[whatwhat]

Say what ??

If it earns below inflation the longer you keep it the worse it gets !

He asked for savings accounts. Which are around inflation or under it already.

Doesn't matter, and I would assume they would be smart about where they put it. But one cannot just give ideas without knowing how easy they need access to the money, their risk appetite etc.

After all that, time is still the thing that matters the most. Especially after 10 years.

 

[hj007]

If it's tied up in those how do you draw money from them?

Or is that the other 30%?

No, most of the money is not in liquid cash. We have a combination of sources but we do sell down shares as we need cash.

It doesn't really matter in the long run whether it's dividends or a sell down of shares - look at Berkshires, it never pays a dividend and you can live off dividends or capital, have a Google on Warren Buffet's analysis on dividend vs living off capital gains.