What to do with R100K?

[Splinter]

Thats bank employee rate

Ok. Then I doubt they would allow you mortgage that bond for better returns

R100k then. Need better than an after tax return of 7.5%

 

[SauRoNZA]

Thats bank employee rate

But no it makes far more sense that everyone is a liar for no good reason so they can ask advice for a problem they don't really have.

/s

 

[HavocXphere]

Ok. Then I doubt they would allow you mortgage that bond for better returns

R100k then. Need better than an after tax return of 7.5%

lol - when I left SA 3 years back I had a credit card at 6.5%.

So yes bank employee mortgage at 7.5 is very plausible.

But no it makes far more sense that everyone is a liar for no good reason so they can ask advice for a problem they don't really have.

/s

Well I must admit I was a bit shocked to see prime is >10%...

But yeah...have a blurry memory of CamiKaze or his gf being bank connected somehow.

 

[saturnz]

Tell us more. 10m2 storage. What are the real parameters? 5x2? In what location in Adderly park? proof of rental income?

I changed my mind, don't buy storage units, no income to be made here, don't mind me

 

[saturnz]

So 8 years to make your money back while sitting on an illiquid asset.

Not exactly what the OP is looking for.

I'm not sure how you got to 8 years, as for illiquid, well thats debatable since property generally flies within days in the CBD and you receive cash every month

 

[Dan C]

I work at a bank.

Now we know where you got the money from... any for me ?

 

[Sly21C]

Invest in cryptocurrency bru, it's the future. Just because you don't know how it works, doesn't mean you can't learn.

If you invested R100k in a cryptocurrency coin called Vechain in early November 2017, you would have about R2.8 million now. Obviously things are easy in hindsight. I also didn't invest, one regret that I'll never forgive myself for.

 

[Hamish McPanji]

This ^^^ is bad advice. People have lost a lot of money in crypto as well. And will continue as well.

Invest your hookers and blow money in crypto, I'd you are willing to give them up...but not your savings

 

[backstreetboy]

People have lost a lot of money in crypto as well. And will continue as well.

Only if they sold. Hodl!

 

[supersunbird]

Only if they sold. Hodl!

But if you just hold forever, how do you pay for stuff?

 

[HavocXphere]

Please don't tell me about Bitcoin or Eth

Invest in cryptocurrency bru, it's the future..

 

[LOTR]

Well, if you truly have a bond at 7.5% (which, to be honest, I doubt), you would simply make (certain) money by getting a bigger bond and investing in fixed deposits.

Totally possible. My bond rate is repo plus 1% (which equates to 7.5% at the moment)

 

[NarrowBandFtw]

Totally possible. My bond rate is repo plus 1% (which equates to 7.5% at the moment)

Repo plus? Banks quote in terms of prime +/- no?

 

[Jehosefat]

Repo plus? Banks quote in terms of prime +/- no?

It's common practice for banks to quote relative to Prime but it's not a requirement. Besides, Prime is defined to be Repo + 3.5% so quoting relative to either is pretty much the same thing. It only makes a difference if you are quoted relative to some market determined rate like JIBAR which can change on a daily basis (although for a loan it would only reset as frequently as the tenor of the reference rate e.g. for 3 month JIBAR your rate would change every 3 months).

 

[Celine]

my husband and i have money in an Absa account. we have over R800 thousand in a savings account. every now and then some fool phones wanting us to put it in some unit trust or some funny thing and i tell them to f off. i know my capital is safe just where it is thank you very much. don't play with my money on some stock exchange.

 

[SauRoNZA]

my husband and i have money in an Absa account. we have over R800 thousand in a savings account. every now and then some fool phones wanting us to put it in some unit trust or some funny thing and i tell them to f off. i know my capital is safe just where it is thank you very much. don't play with my money on some stock exchange.

Actually it's not safe at all.

It's only marginally better than putting it under your mattress because due to inflation it's worth less and less every day.

So they are 100% right to want to have you move it elsewhere because you are losing money every day.

You would do well to put it in a balanced fund even if a low risk one, all depending on your goals for the money.

Just sitting on it in a savings account is not doing you any favours.

 

[SauRoNZA]

Which brings me to an interesting point.

Is it a failure on the employer's part when someone who works FOR a financial institution goes elsewhere to discuss what to do with their money?

Even outside of working for one shouldn't employers be doing more to give their employees a financial education?

I just sat through our annual provident fund meeting and it astounds me that people I consider technically superior over myself have absolutely no clue how financial markets and systems work based on the borderline elementary questions being asked.

The lack of understanding with regards to compound interest, inflation and and different investment vehicles is truly shocking.

 

[Hamish McPanji]

Which brings me to an interesting point.

Is it a failure on the employer's part when someone who works FOR a financial institution goes elsewhere to discuss what to do with their money?

Even outside of working for one shouldn't employers be doing more to give their employees a financial education?

I just sat through our annual provident fund meeting and it astounds me that people I consider technically superior over myself have absolutely no clue how financial markets and systems work based on the borderline elementary questions being asked.

The lack of understanding with regards to compound interest, inflation and and different investment vehicles is truly shocking.

Forget employers. It's a crime that this isn't taught in schools. I think it needs to be as compulsory as maths and English

 

[Celine]

Actually it's not safe at all.

It's only marginally better than putting it under your mattress because due to inflation it's worth less and less every day.

So they are 100% right to want to have you move it elsewhere because you are losing money every day.

You would do well to put it in a balanced fund even if a low risk one, all depending on your goals for the money.

Just sitting on it in a savings account is not doing you any favours.

it's in some special savings account not just a normal savings account. and my capital does not move anywhere thank you. i get interest which is taxable end of year. i would rather pay a bit on the interest and know it's there and not in some shady place where someone is playing with it and i could lose my money especially these unit trusts etc.

 

[SauRoNZA]

Forget employers. It's a crime that this isn't taught in schools. I think it needs to be as compulsory as maths and English

100%

But targeting employers (private sector) would be better than barking up the Education tree.

it's in some special savings account not just a normal savings account. and my capital does not move anywhere thank you. i get interest which is taxable end of year. i would rather pay a bit on the interest and know it's there and not in some shady place where someone is playing with it and i could lose my money especially these unit trusts etc.

If it's got savings account in the title it can only get so special. But I would love to hear exactly what type of account it is as I can then pull some real stats and facts for you to draw you a pretty (terrible) picture.

You need a financial education my dear. Investment in the correct risk profile (and assuming you understand the time lines required) your money is as safe in a unit trust while actually increasing in value.

Keeping it safe while not beating inflation or only just matching isn't "safe" at all.

There is nothing "shady" about any of these things. And unit trusts are the best way to go (or ETF's) as they are generally balanced and therefore quite low risk.

The market never goes down...it pretty much always goes up. So sure you might hit a dip and it might look terrible but over the longer term view it always wins.

https://www.moneyweb.co.za/mymoney/...punts-sa-equities-property-and-bonds-in-2017/

Even the worst equity based investments will yield higher real returns (returns compensated for inflation) than a savings account.

https://www.moneyweb.co.za/investing/multi-asset-vs-equity-funds/


I know you won't listen, but I strongly implore you to take a real world look over the longer term before you also end up unable to retire like the rest of the country while thinking you are in the green.