Investment ?

**Justloadit** · 01-Oct-15, 10:49 AM

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.

**HR Solutions** · 01-Oct-15, 11:19 AM

Originally posted by Justloadit

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.

**tec0** · 01-Oct-15, 11:22 AM

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.

***edit***
i do play around on the stock market but it is really high risk and i cannot in good conscious recommend that.

**HR Solutions** · 01-Oct-15, 11:27 AM

The question is, can Old Mutual offer more than 8.7% ? (Interest paid monthly )

**tec0** · 01-Oct-15, 11:46 AM

Originally posted by HR Solutions

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.

**Rafael** · 01-Oct-15, 12:59 PM

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?

**HR Solutions** · 01-Oct-15, 01:03 PM

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

**Phil Cooper** · 05-Oct-15, 12:12 PM

Bear in mind that on that level of income there will probably be NO tax payable - under the minimum level.

**HR Solutions** · 05-Oct-15, 02:45 PM

Originally posted by Phil Cooper

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

**Rafael** · 06-Oct-15, 01:03 PM

Originally posted by Phil Cooper

Bear in mind that on that level of income there will probably be NO tax payable - under the minimum level.

correct

**Pap_sak** · 08-Oct-15, 07:51 AM

I think the state pension is around R1400 p/m these days. Had something similar with my M/L - she has less capital but a paid of house and one of her daughters living there - so probably in a slightly better situation for now. Of course having you pension money in a bank account really is a problem - you capital is just being eroded yearly. Being a healthy 69 - she could possibly have 20 years of life yet.

My M/L was getting around 6% from the bank - I said we could open a equities account (easyequities.co.za has no monthly fees and low trade costs) and then I would buy listed property and high dividend paying shares - around 50%/50% - you could easily get a 6% return PLUS get a decent capital return over the long term. Not only that, but on the whole dividends generally grow at around 10% a year so you will out strip inflation and actually have a bit more to spend every year.

I said I would guarantee her 6% as well as her capital after 5 years - basically to put her mind at ease but really, you not buying capital growth, you looking for dividend growth so fluctuations in the market do not effect you at all. The offer is still on the table but has not been taken up - it seems she would rather take advice from the first person that picks up the phone at the local ABSA. I asked her to at least look at Coronation, Foord and Alan Grey - people that know a bit more about it.

Just my 10c - I am retired (age 42) and have all my money in invested in the stock market and live of dividends - works well.

Getting an 8% initial yield would be a bit of a stretch - the bulk would be small cap REITS - I prefer to spread the money between a few companies and a few sectors - 6% would be a better initial yield - 10 companies @ R30K each - would also include R30K in the tax free saving account for this year and next and not pay the 15% dividend tax.

**Houses4Rent** · 17-Oct-15, 08:52 PM

Originally posted by Pap_sak

I am retired (age 42) and have all my money in invested in the stock market and live of dividends - works well.

Well done fro that. However, Robert Kiyosaki and Gordon McKay both exited the stock market totally. They see some big crash coming up. I hope you will be able to stay retired if that happens. I personally put pretty much all into global residential property.

**Pap_sak** · 18-Oct-15, 08:23 AM

Originally posted by Houses4Rent

Well done fro that. However, Robert Kiyosaki and Gordon McKay both exited the stock market totally. They see some big crash coming up. I hope you will be able to stay retired if that happens. I personally put pretty much all into global residential property.

Although I will not pretend that I do not like capital (as in share) growth - as I have no interest is selling my shares, the actual share price means nothing to me. In 2008, when share prices tanked, companies still made money and still paid dividends - often increasing them. I do avoid cyclical sectors like building and resources. Economic slowdowns and rescissions will effect me to a point - as will rand depreciations but I am quite well hedged and might actually be better off if the rand tanks.

All I really care about is that the dividend growth beats inflation - and even there I have started to measure MY inflation every 6 months.

**Phil Cooper** · 19-Oct-15, 02:02 PM

You can NEVER lose money of the stock market crashes - unless you sell your shares at the time.

Wait it out, and they will (eventually) come back plus more.

As the rich investor says - Buy when the market is down, sell when up (or hold)!

Investment ?

Investment ?

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