Which would be better

[The_Mowgs]

I would like to put some money away each month for either holidays or a big purchase or whatever. Which would be better?

Easy equities account and then buying stocks of say 4 different companies each month
Opening an account with Satrix or Coronation and just depositing money there each month?

 

[Sepeng]

Depends on how much time you're willing to spend on researching which companies to choose, the admin around buying the shares etc.
Look there's no reason you can't do both - I was in your shoes I'd start with a monthly debit order with one of the investment companies, Satrix, Allan Gray, Coronation etc, and educate myself around the whole direct shares thing, start up demo accounts, and only when I'm pretty comfortable with how it all works get involved in direct shares.

The debit order one, get started, forget about it, you'll be surprised how quickly it can grow.

 

[krycor]

Yip doing this although it is a bit tough presently with JSE sucking compared to previous years. That being said, when it goes well, it beats the fixed deposit thing

 

[Galactica]

You don't say how long before you need the money, the investment horizon is very important when making a selection...risk appetite too.

 

[The_Mowgs]

You don't say how long before you need the money, the investment horizon is very important when making a selection...risk appetite too.

I would say the money needs to be available in 15-20 days. I just dont want to leave my money in a savings account and I am already paying more into my bond each month.

 

[twaatie]

I would say the money needs to be available in 15-20 days. I just dont want to leave my money in a savings account and I am already paying more into my bond each month.

You don't have an access bond account.

I just pay the holiday money into my bond and withdraw when I need it.

 

[Galactica]

I would say the money needs to be available in 15-20 days. I just dont want to leave my money in a savings account and I am already paying more into my bond each month.

Fine, but how long will you leave it invested before you need to withdraw? So far it sounds like you may need a Money Market account or some low equity investment.

 

[The_Mowgs]

There is no set time. I would just like to do something with the money except leave it in my savings.

I would also rather just dump it in my bond than park it in a money market account

I have already decided to either go with easy equities or Coronation / Satrix. I now just need to figure out which one would be best. I might leave the money for 10 years or if I want to I will withdraw it the next day if I need it.

Easy Equities seems nice as it is not expensive but going with Coronation or Satrix is less risk

 

[Neo_X]

There is no set time. I would just like to do something with the money except leave it in my savings.

I would also rather just dump it in my bond than park it in a money market account

I have already decided to either go with easy equities or Coronation / Satrix. I now just need to figure out which one would be best. I might leave the money for 10 years or if I want to I will withdraw it the next day if I need it.

Easy Equities seems nice as it is not expensive but going with Coronation or Satrix is less risk

you can buy the same Satrix shares through Easy equities as with Satrix itself. (well most of the ETF's)

Only issue tax. if you buy/sell shares before a three year period, you will be taxed on the profit at standard PAYE tax rate.

only issue that basically forced met to choose EasyEquities is Yearly fee's. it is a MAJOR hit on your returns.

see below blog post

http://www.investorchallenge.co.za/those-fees-are-blatantly-robbing-you/

 

[The_Mowgs]

you can buy the same Satrix shares through Easy equities as with Satrix itself. (well most of the ETF's)

Only issue tax. if you buy/sell shares before a three year period, you will be taxed on the profit at standard PAYE tax rate.

only issue that basically forced met to choose EasyEquities is Yearly fee's. it is a MAJOR hit on your returns.

see below blog post

http://www.investorchallenge.co.za/those-fees-are-blatantly-robbing-you/

Thank you very much for the info. I will spend some time reading the link you provided.