What do I do with R50K?

If I put the cash into my bond what will happen when I need it?
 
If you have a access bond or similar you can just draw it again whenever you need it.
 
Beachless said:
If you have a access bond or similar you can just draw it again whenever you need it.
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Yup. There's not even a notice period. The only limit is the transfer limit on your account/internet banking.
 
Just to understand. my bond is at prime + 1.5 or so, let's say 10%. So if I throw the cash into my bond, I'm effectively saving 10% of R50K. How do I work out the effectiveness of this method?
 
Please buy Saturnz's Delta Motor Corporation of South Africa Opel Monza 160i GSi Car of the Year 1991 and spend the extra R10k on fuel doing a nationwide MyBB roadshow in it
 
foschinni said:
I have a spare R50K to put in investment. I don't know how long but it could be anything 1-4 yrs.
The challenge is; I feel that the JSE market is overvalued so going any equity route i.e. direct shares/satrix/unit trust is probably not a viable route right now. Fixed deposit is joke!
So what should I do with the R50K?
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Just because the JSE might be overvalued I don't think that means every stock is affected. Some industries also thrive while others are failing. I would perform a fundamental analysis of a number of companies and still consider investing in those that are not affected by the same market variables.

Disclaimer: I'm still a finance noob.
 
foschinni said:
Just to understand. my bond is at prime + 1.5 or so, let's say 10%. So if I throw the cash into my bond, I'm effectively saving 10% of R50K. How do I work out the effectiveness of this method?
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You save 10% per year on the extra capital you payed but remember its compounded over the remaining loan period. You will be surprised by how much you will save when you pay even a few 100 a month extra or put a lump sum into the account.

Here is a calculator there are others as well if you google home loan lump sum:
http://www.nedbank.co.za/website/content/calculators/calculatorframes.asp?subsubcat=1124&calcid=45
 
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Bobbin said:
Just because the JSE might be overvalued I don't think that means every stock is affected. Some industries also thrive while others are failing. I would perform a fundamental analysis of a number of companies and still consider investing in those that are not affected by the same market variables.

Disclaimer: I'm still a finance noob.
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Agree. and it seems like the S&P 500 has just bridged the 50d SMA so maybe a downfall globally...?
 
supersunbird said:
One option:

Half of the money into a bond unit trust/ETF , quarter into SA large cap unit trust/ETF, quarter into rand denominated foreign unit trust/ETF.
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The above option if for the 1 to 2 year outlook.

If 3 to 4 years, play with those ratios as you see fit, less bond, more equity.

If 5 years or more, 40% SA large cap unit trust/ETF, 10% into properly fund, 50% rand denominated foreign unit trust/ETF.
 
If my bond was at that rate that 50k would already be in there. Why earn 4.75% in one spot while paying 10% elsewhere?
 
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