What to do with R100K?

[saturnz]

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

well fiat currency is legal theft and all that...

in order for the scam to work people have to be financially illiterate

 

[Sinbad]

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

20 percent pass mark and all

 

[supersunbird]

100%

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



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.

OK, the above is a bit... concerning, your low risk at age whatever might not be anywhere near her low risk at age whatever, capiche?

 

[SauRoNZA]

OK, the above is a bit... concerning, your low risk at age whatever might not be anywhere near her low risk at age whatever, capiche?

Low risk is always low risk.

It's rather that you wouldn't go into medium and higher risk as you get closer to retirement to preserve your capital over the longer term and even then it would still be in a large part of equity and definitely not pure cash.

Chasing Inflation +2% or 3% instead of say 5 or 7%.

And one could then even still argue that Inflation + 7% might be high risk as concerns retirement planning but that in and if itself bring low risk opposed to the investment industry as a whole.

To keep it purely in cash would be the highest risk of all as you are losing money almost always.

Age defines risk aversion, but the actual level of risk itself.

Lower risk equals lower volatility with lower returns. It doesn't mean putting your money into something that literally results in a negative real return...because that would be silly.

Also...one has to take it from whence it comes and therefore assumption is easy.

There is risk and then there is guaranteed going backwards, which kind of means there is actually no risk at all if you were standing to lose it anyway by doing nothing.