What to do with 20k

Hamster said:
Forget TFSA

I'd go EasyEquities: R10k in DBXWD and R10k in STXIND or BBET40
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He can get the same investments on TFSA with the extra benefits of no dividend and capital gains tax.
 
Be sure to check the fees for the accounts you checking out as you wouldn't want the fees to wipe out what little interest you will be earning. I would suggest keeping the money as a rainy day fund that can also be used for a deposit on a car or something similar.
 
Galactica said:
He can get the same investments on TFSA with the extra benefits of no dividend and capital gains tax.
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...and ruin his TFSA lifetime cap limit for the rest of his life. He only wants it for 5 years.
 
Hamster said:
...and ruin his TFSA lifetime cap limit for the rest of his life. He only wants it for 5 years.
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Not necessarily, he will still be able allowed to invest R30 000 per year for many years after that 5 years. That's no reason not to invest in a TFSA for 5 years. Not everybody is going to leave their money in that account for a lifetime. If it can satisfy his goals he can use it. Using 4% of your TFSA lifetime allowance (to make a 5 year equities investment) can hardly be described as "ruin", dramatic much? :rolleyes:
 
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Galactica said:
Not necessarily, he will still be able allowed to invest R30 000 per year for many years after that 5 years. That's no reason not to invest in a TFSA for 5 years. Not everybody is going to leave their money in that account for a lifetime. If it can satisfy his goals he can use it. Using 4% of your TFSA lifetime allowance (to make a 5 year equities investment) can hardly be described as "ruin", dramatic much? :rolleyes:
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The potential of R20k tax free growth over 25 years is substantial. The amount of tax he is going to save on R20k wont be that much anyway, so he won't be using the TFSA to it's full potential. But...whatever. We clearly have very different mindsets when it comes to these things. I don't really look at benefitting in the short term.

And like you said it's only 4% so I suppose, when you put it like that, TFSA may not be that bad an idea. OP might decide to leave the money for longer than five years anyway.
 
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I see many posters here recommend cash in fixed deposit, money market stuff. Those are purely for emergency funds and not for gains in capital. The OP wants Returns on his investment. A gain of 8% pa is a joke.

Hardly any Fund Managers are able to beat the STXIND ETF due to restrictions placed by the FSB so why not invest directly into it yourself?

You can do this via the TFSA without triggering a tax event when you sell. STXIND has done superbly well at +- 30% pa over many years and as industries are the "life blood" of our economy. it must continue.
 
Might not be the popular opinion, but have you considered buying some booze and drugs with the money instead?
 
Why so many stupid remarks is beyond me. If you have nothing but garbage to add then stay out and play your games on your stupid X Boxes and leave this thread for what it is. The OP is serious unlike you. So please keep to the subject and not spam it with your gutter posts. Sies. It reflects your knowledge.
 
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Oopsie said:
Why so many stupid remarks is beyond me. If you have nothing but garbage to add then stay out and play your games on your stupid X Boxes and leave this thread for what it is. The OP is serious unlike you. So please keep to the subject and not spam it with your gutter posts. Sies. It reflects your knowledge.
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teh_internet.jpg
 
Oopsie said:
Why so many stupid remarks is beyond me. If you have nothing but garbage to add then stay out and play your games on your stupid X Boxes and leave this thread for what it is. The OP is serious unlike you. So please keep to the subject and not spam it with your gutter posts. Sies. It reflects your knowledge.
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:wtf:
 
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