Where to save/invest?

Worst part is that Nedbank Financial Planners cannot do the math on what the fees would be either. And they give you extra money to invest at the start? Sounds so scammy...
 
if I pay R110 a month on my RA for admin/invest fees, is that a lot? (I can't find any %'s)
 
jsheed_sa said:
If I place up to 27.5% of my income in to an RA then when do I see the tax back?

e.g. when do I see the lower tax rate (due to less income). Immediately or do I only get refunded come tax return time?
Click to expand...

If your HR department is wise, you can see it from month 1 and not only when you complete your yearly tax. (You will get more out from your salary)
 
akescpt said:
I have no words

http://today.moneyweb.co.za/article...Mp08WkHj2+XORA==&date=2016-04-25#.Vx2wra9XerU
Click to expand...

A very good friend of mine send me a screenshot of this, and I found the article online (HERE)

I can say, I am in that boat, but not nearly R1.9KK !

That is why I raised questions with my broker to told me to f-off (or rather his CEO (the broker firm)), as I started to ask hot questions about my investment !

My story is more, the value of my little RA is R285K, in 7 years I made R40 000 in growth and R40 000 in fees !

I just wanna CRY !!!!!! But tears wont help me now. Time to make changes ... (AND BIG ONES)
 
halfmoonforever said:
0, I currently don't contribute on a monthly basis at all (nor a lump sum for the previous years), planning on starting though
Click to expand...

Well where did you get the R110 costs from then? R110pm on R1000 is a lot. R110 on R20,000, not so much.
 
jsheed_sa said:
If I place up to 27.5% of my income in to an RA then when do I see the tax back?

e.g. when do I see the lower tax rate (due to less income). Immediately or do I only get refunded come tax return time?
Click to expand...

If you let your company know about this RA they can tax it monthly.

If you don't then only after filing your return.
 
I've just thrown all my spare cash into an ABSA 90/10 account. 7.10% interest with no fees (no deposit fees too) and instant access to 10% of the cash. Ok for now.
 
SaiyanZ said:
I've just thrown all my spare cash into an ABSA 90/10 account. 7.10% interest with no fees (no deposit fees too) and instant access to 10% of the cash. Ok for now.
Click to expand...

Just don't use this as your only savings/investing vehicle, it barely beats inflation.
 
Hendrix said:
Just don't use this as your only savings/investing vehicle, it barely beats inflation.
Click to expand...

Yeah, I'm just throwing in spare cash to eventually buy a property when settling down. It's still better than situations like this though:

My story is more, the value of my little RA is R285K, in 7 years I made R40 000 in growth and R40 000 in fees !
Click to expand...

On R250k I'll end up with around R17k interest per year, risk free without fees. About R120k interest over 7 years for direct comparison with instant access too.
 
Simbachippy said:
Dear Grumpster

Do you have any debt?

If yes, then list your debt smallest to largest, excluding home loan. Make minimal payments on everything and attack the smallest loan with all that you have.Once payed off transfer the payments to next biggest debt and repeat proccess until you are debt free.
If you are debt free, well amen brother

Do you have an emergency fund?
If you don't have, place R1000 in a saving account. Once you debt free focus on your emergency account. A minimum 3-month expenses should be saved

Once you completed the above steps then look at retirement. the next question is what age are you.
If you are young then an aggressive fund is what you looking at and vice versa
It is very difficult to give you an exact fund to invest in as many factors can influence the choice you make
Click to expand...

I have some questions...

Debt - Pay the one with the highest interest first or Pay the one with the highest balance first?
Emergency Fund - Where would be the best place to save this? Some friends have said normal savings accounts, others have said money market account.
Retirement - Is the 27.5% limit on your gross income or net income?

Sorry to Hijack Thread...
 
Last edited:
>Reaper< said:
I have some questions...

Debt - Pay the one with the highest interest first or Pay the one with the highest balance first?
Emergency Fund - Where would be the best place to save this? Some friends have said normal savings accounts, others have said money market account.
Retirement - Is the 27.5% limit on your gross income or net income?
Click to expand...

Debt - I'd say pay the one costing you the most off first. 20% on R100 is R20, 5% on R1000 is R50. I'd pay off the 5% first.

Emergency fund - 7 day call account so that you cannot casually dip into it spur of the moment. Maybe keep a much smaller amount in a Money on Call account you can access immediately. (or use credit card and pay off once the emergency funds become available).
 
Hamster said:
Debt - I'd say pay the one costing you the most off first. 20% on R100 is R20, 5% on R1000 is R50. I'd pay off the 5% first.

Emergency fund - 7 day call account so that you cannot casually dip into it spur of the moment. Maybe keep a much smaller amount in a Money on Call account you can access immediately. (or use credit card and pay off once the emergency funds become available).
Click to expand...

Thank you very much!

Everything in this thread needs to be taught at school!!!
 
>Reaper< said:
Thank you very much!

Everything in this thread needs to be taught at school!!!
Click to expand...

NO! School is for finding X and some Cosine going off on a Tangent. You know, the important things in life. Why would you want to teach children about investing their salary from day one in an ETF or the like if you have parents that can teach you to keep your money in a savings account... :rolleyes:
 
>Reaper< said:
I have some questions...

Debt - Pay the one with the highest interest first or Pay the one with the highest balance first?
Emergency Fund - Where would be the best place to save this? Some friends have said normal savings accounts, others have said money market account.
Retirement - Is the 27.5% limit on your gross income or net income?

Sorry to Hijack Thread...
Click to expand...

Debt - Highest interest rate first, then when paid off use that money to pay the next highest.

Emergency Fund - What I am working towards, only got 2 months worth so far:
1 month - Coronation Money Market (very low risk)
2 months - Coronation Strategic Income (low risk)
2 months - Coronation Global Strategic USD Income [ZAR] Feeder (low risk, invests in $ fund, so influenced by currency fluctuations)
1 month - Coronation Global Capital Plus [ZAR] Feeder (medium risk, invests in $ fund, so influenced by currency fluctuations)

Retirement - Gross
 
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