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What is the best way to invest money on long term and where? Low risk and high income. (Or is this wishful thinking?)
Regards,
Dirk Fourie
Regards,
Dirk Fourie
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Hi Dirk, I'd advise actual shares and not futures or anything like that. Then it depends how much money we talking about, will you do adhoc or monthly payments, also will you need to withdraw, when, how long is your term and etc.?
Then different asset classes come into play depending on where the economy is one can make a decision.
Generally low risk means low returns and high risk means high returns but it could also mean loss. If you see something that is low risk and high return I'd be very careful. There's much more to investing than it sounds, there are so many things to consider including taxation, different life situations, your age, what are your goals and expectations and so on, based on that a proper financial plan can ve put in place.
This is what I do all day every day so if you like PM me your number and I can give you a call to give you a few ideas based on the information that you will give me.---There is no traffic at the extra mile--- -
Start invest your money through depositing your half of your income in a trustworthy banks and it is better for you to get a credit card so that if you decided to start a business you can used your credit card.Factoring and Invoice DiscountingComment
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Banks??? Worst idea sorry John, way too many implications, to mention a few interest bearing instruments, tax implications for big amounts and high net individuals, higher inflation than returns...---There is no traffic at the extra mile---Comment
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www.satrix.co.za - Not without risk - but the fees are low and your investment is spread over a number of shares.Comment
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Depends what you mean as low fees? Describe low please and compared to what? And what are the tax implications and how about managing the portfolio, what are the choices? People are like sheep,they hear something and they go for it, but have no idea of what they are doing.---There is no traffic at the extra mile---Comment
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All the details are on the website.Comment
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Look at the website is a spot on answer
Ian I asked a few questions and looking at the website wonn't give me the answers. A while back I wrote a post about Satrix and by the way I'm not dissing them, all I'm saying is that you can't base your decisions on what someone that has no idea what he's talking about, people love making uneducated comments and besides their money should be where their mouth is before telling someone what to do and how to do it. It's so easy to say things!---There is no traffic at the extra mile---Comment
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Ive been playing with the idea of investing, but dont know the first thing... almost went with FNB's share builder or share investor, but a gut feeling tells me thats a bad move? Im 25 with a less than desirable net income, so want to do what i can with what i have to secure my future id love some insight on options!!Comment
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ouch.
*I am not a financial advisor. I just gave Dirk something to consider.
(The idea about forums are not to PM people but to give advice on the forum so that it can have value to someone else at a later stage.)Comment
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Google is my friend I see Moneyweb is quite happy with SATRIX.
Moneyweb article for the full article.So it looks like Satrix's claim stands, the cheapest (at least in terms of the tracking error/performance gap) way to get into the market.
Nick what is better investment in terms of risk/reward/liquidity?Only stress when you can change the outcome!
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Does cheap mean good? Well in terms of fees their charges will be 0.75%-0.65% + brokerage fees and etc then they add VAT, these will be your annual fees plus switch fees and monthly fees and that is considering there's no brain behind it like will be the case with a fund manager or a stock broker for example. Satrix 40 foe example will buy the top 40 shares, the process is a day behind the real time market. Nobody gives you advise on tax, estate planning, there is no personal touch, nobody will tell you to move money out of there and put the accumulated lump sum in a less risky assets depending on the cycle of the economy. Markets react different to news and assest classes in which you invest need to be activly managed to maximize your returns. Do yourself a favor and have a look at 5 years satrix 40 performance http://www.satrix.co.za/products/satrix40.aspx now show me one fund that had such a loss! On their webiste shows how they've made 20% or whatever, but can you see that it still hasn't reached the levels of 2007 never mind the inflation. Now if you look at say a fund that is activly managed you'll pay say another 0.50% more but you'll even have an advisor looking after you, ate we still gona talk about cheap? Just remember that sometimes more expensive things turn out cheaper. Please don't get me wrong satrix is good because you can buy a bucket of shares, it is cheap if you manage your investment, but expensive if you don't have a clue of what's happening. The reason why I was getting upset is because people just hear something and they think they know everything and offer it to others, so when you give an advice explain why that is what you saying.---There is no traffic at the extra mile---Comment
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When you use advice given it is always buyer beware.
Nick the link you gave is interesting I compared satrix 40 to the divi fund, and the divi fund outperforms the satrix 40 by a substantial margin. My gut feel says this should not happen. But I have been out of watching the JSE for 12 years so lots has changed.
What this means is do lots of research before investing.Only stress when you can change the outcome!
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