What to do with R350k?

[Confused_Man]

Hi there,

I recently inherited about R350k and would like to get an idea on what to do with it. I am 32 years old and very likely to leave the country permanently next year Oct-Dec so any investment can't be long term. I rent my home and have no debts and I already have a very basic savings account plus an RA I already contribute to. So essentially just looking for what to do with it for ~one year max before taking it overseas.

My thoughts:
Tyme Bank - R100k to get the max interest but, then what do I do after?
Crypto - I am risk averse so this is less than ideal but may be an option.

Any thoughts will be welcomed.

 

[Tman*]

Crypto - I am risk averse so this is less than ideal but may be an option.

you have answered your own question on this section - dont do something you wont be comfortable with.

 

[Mike Hoxbig]

 

[Confused_Man]

you have answered your own question on this section - dont do something you wont be comfortable with.

I guess writing it out sometimes helps.

 

[3WA]

Save it for your emigration. Consider converting it to the currency of the new country (unless you’re moving to Turkey or Brazil or something)

 

["D"]

Give 1000 people a once-off social grant.

 

[Confused_Man]

Would be great but too many responsibilities.

Save it for your emigration. Consider converting it to the currency of the new country (unless you’re moving to Turkey or Brazil or something)

Hmmm unlikely. Moving to a country similar to what you mentioned and the currency is not in an ideal place. Moving for a change in lifestyle mostly.

 

[Confused_Man]

Give 1000 people a once-off social grant.

One of the many things pushing us to jump ship. . . bloody ridiculous.

 

[Affieplaas]

You need to decide what you want i.e.:
- Do you simply want to take the money out of SA, or
- Do you want to maximise returns on it during the next 12 months before you take it overseas.

You have a few options:
- Open a FNB Channel Islands account. Transfer the money offshore and leave it there in USD, UKP, AUD or EUR until you get to your final destination. Interest is less than 1% though but you are hedged against future forex shifts.
- Open a Easy Equities account, convert the ZAR to USD and buy foreign shares.
- Keep it local in a 12 month fixed deposit. You can earn between 3.5% and 4% over this period. Then cash out and convert it to a foreign currency before you leave.

 

[GhostSixFour]

Use it to emigrate.

 

[Confused_Man]

You need to decide what you want i.e.:
- Do you simply want to take the money out of SA, or
- Do you want to maximise returns on it during the next 12 months before you take it overseas.

You have a few options:
- Open a FNB Channel Islands account. Transfer the money offshore and leave it there in USD, UKP, AUD or EUR until you get to your final destination. Interest is less than 1% though but you are hedged against future forex shifts.
- Open a Easy Equities account, convert the ZAR to USD and buy foreign shares.
- Keep it local in a 12 month fixed deposit. You can earn between 3.5% and 4% over this period. Then cash out and convert it to a foreign currency before you leave.

Use it to emigrate.

Maximizing returns before we leave will be the best thing to use it for. We are pretty covered for the move (tickets, pets, houseold goods etc.)

I guess the Easy Equities route is also a good option for higher rewards. Just dont want to leave it in a basic savings account losing money,

 

[Barbarian Conan]

Some in any other fixed deposit with 24h to 31 days notice.

Emigration can also take a lot longer than you expect, so put something in equities. Even if you emigrate permanently, I don't think you can financially emigrate for 3 years or something.
I suggest putting some money in Aus or the US with Easy Equities. That way you have some money that will be protected against a weak Rand. On the other hand, if the Rand strengthens it will have the opposite effect.
I like hedging, so even though I want a short term investment I have money in US and SA stocks. And then some as fixed deposits.

 

[Confused_Man]

Some in any other fixed deposit with 24h to 31 days notice.

Emigration can also take a lot longer than you expect, so put something in equities. Even if you emigrate permanently, I don't think you can financially emigrate for 3 years or something.
I suggest putting some money in Aus or the US with Easy Equities. That way you have some money that will be protected against a weak Rand. On the other hand, if the Rand strengthens it will have the opposite effect.
I like hedging, so even though I want a short term investment I have money in US and SA stocks. And then some as fixed deposits.

I like this approach. Thanks, appreciate it.

 

[Affieplaas]

I'm not planning on emigrating (I'm too old, don't play well with the English, rather the Devil you know and a few other reasons) but I have a fixed deposit USD account with FNB Channel Islands. That way the money is properly outside of SA and I am hedged against the ZAR's volatility. Returns on the money at the moment is not great due to the ultra low interest rates in the first world countries but my main concern is that I have cash available should this place ever implode and the "leadership" freezes all SA bank accounts and/or blocks any forex transactions. At least now I can buy a Starbucks while standing in the asylum seeker queue at JFK Airport or a Guinness at Dublin Airport.

 

[GhostSixFour]

Maximizing returns before we leave will be the best thing to use it for. We are pretty covered for the move (tickets, pets, houseold goods etc.)

I guess the Easy Equities route is also a good option for higher rewards. Just dont want to leave it in a basic savings account losing money,

In that case.

Yolo $GME and HODL.