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Thread: Investment ?

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    Diamond Member HR Solutions's Avatar
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    Investment ?

    I would like to get an opinion on different type of investments. There are a few factors to take into consideration. It is not for myself - it is for my mother in law. My father in law recently passed away. Unfortunately they did not always do the correct things in life, i.e. take care for your old age.
    But neverless, we now have to help her out financially. She will be getting approx R300 000.00 from a policy they did have. This is not a lot of money considering she is not employable at the age of 69, but is relatively healthy.

    What advise could the investment gurus give me to do with this money. As far as I can see - if I invest this money in a Nedbank Senior Citizens account the best I can arrange for her is 8.7% interest. I also looked at a Liberty policy which is 17.5 % interest paid out monthly but the capital amount depreciates and will run out in 5 years. My thinking is if she invested R300 000 at 8.7% interest, she will get a monthly interest of approx R2175 per month which she will then have to live on - everything else including rent I will have to pay.

    Any advice will be really appreciated
    Thank you
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    Diamond Member Justloadit's Avatar
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    Is she collecting monthly government old age pension?
    If not, she should register, whilst it is only R700 odd, it is more than zero, and can supplement any other income that she will get.
    She can also take advantage of regular senior citizen discounts when made available by some super markets and also public transport. All these little things do help at the end of the day.
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    Diamond Member HR Solutions's Avatar
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    Quote Originally Posted by Justloadit View Post
    Is she collecting monthly government old age pension?
    If not, she should register, whilst it is only R700 odd, it is more than zero, and can supplement any other income that she will get.
    She can also take advantage of regular senior citizen discounts when made available by some super markets and also public transport. All these little things do help at the end of the day.
    Thanks JL - Yes she is collecting the old age pension and I certainly hope that she is taking advantage of old age discounts ..... i will mention this to her.
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    Diamond Member tec0's Avatar
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    I think you already answered this question. Thing is she needs income from the get go and cannot wait for "short term or 5 year investment" i could recommend you ring up old mutual and hear what they have to say. I am not familiar with there new packages but i can say i am happy with them especially on the long term side of things. I'm sorry to hear about your Father in law. My condolences for your family and you.


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    i do play around on the stock market but it is really high risk and i cannot in good conscious recommend that.
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    Diamond Member HR Solutions's Avatar
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    The question is, can Old Mutual offer more than 8.7% ? (Interest paid monthly )
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    Diamond Member tec0's Avatar
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    Quote Originally Posted by HR Solutions View Post
    The question is, can Old Mutual offer more than 8.7% ? (Interest paid monthly )
    I would love to answer that honestly but because i am a long standing client with them "nearly 15 years now" my interest is a bit higher, as i do like to reinvest. 8.7 is not bad at all and you say is it is a monthly interest... HR i will be honest you can just give them a ring but i don't think you will do better then that. That is not bad at all considering.

    That said some banks like ABSA like to take 10% when you invest... "last time i check that was in 2014 month of April. I don't know if they still do. But just check for that when you invest that you don't lose a year worth of interest.
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    Email problem Rafael's Avatar
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    Hi HR

    With the Liberty investment it seems like they talking about an annuity, do not do that as you will be locking her money and she gets taxed on her monthly income.

    What I would do, is invest into a classic investment with Stanlib (you can look at other companies), Stanlib wont guarantee you a return but you can invest into a moderately conservative fund and get around 6% - 8%

    Why a classic Investment
    - liquidity
    - You can add whenever you want
    - You can do a withdrawal whenever you like
    - Access to funds such as Allan Gray, Coronation and others
    - View funds online

    What you would have to do, is look at the brokers fee. He shouldn't take a upfront fee and shouldn't charge more than 0.5% service fee (yearly), many consumers have investments at the banks not realizing brokers are charging a 1% fee. I come across it all the time.

    Does she have access to her money in the Nedbank Seniors account?
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    Diamond Member HR Solutions's Avatar
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    Does she have access to her money in the Nedbank Seniors account?
    Haven't done it yet, but seems like a question I need to find out
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    Email problem Phil Cooper's Avatar
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    Bear in mind that on that level of income there will probably be NO tax payable - under the minimum level.

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    Diamond Member HR Solutions's Avatar
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    Quote Originally Posted by Phil Cooper View Post
    Bear in mind that on that level of income there will probably be NO tax payable - under the minimum level.
    Yes I agree - thanks Phil
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