What if you had R100 000 in a foreign account say USD or Pounds 15 years ago or put that R100 000 in the stock exchange here. What would the difference be today. I'm thinking of putting spare cash in a foreign denominated account, with no risk as opposed to the stock exchange.
TIA
Its such a broad question, buying USD for example with zero interest is betting against ZAR assuming you ever cash out if you never cash out you not even beating inflation to a certain degree.
I held USD denominated stable coins but that had interest tied to it cashed out before the chaos of last year but I would not just stack dollars with zero returns.
Also looking back 15 years and saying your money would have doubled etc isnt a good way of looking either.
If you have spare cash a split between the two options would likely be a better option, fx is "low" risk and stocks as the higher risk, stay away from single stocks thats gambling unless you know what you doing.
Figure out your risk profile.
50/50 (maybe even 70 stocks for more risk) is likely a good split, put in and forget about it. Also to be honest R100k isnt going to make you a millionaire anytime soon either. Investec prime saver is around 8% a year risk free so figure out what you want.
The higher the % return the higher the risk.
To put things in perspective you buy only USD, USD/ZAR needs to hit R35 to make that R200k now. Just showing you what you looking at realistically.
