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Thread: Investing Advice For A Newbie

  1. #11
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    Quote Originally Posted by SauRoN View Post
    In my opinion if you set it up in any account that has "instant access" then you aren't investing but saving.

    It's a small thing but it says everything about your approach and discipline.

    In my opinion, at the very least it should be a 30-day call account so that you leave it well enough alone and get over any kak idea you might have in time before the money gets released.

    Also a very important thing to consider before you just start putting money away willy nilly is what is the point of it all? What is your investment horizon? What are your goals for the money? This ultimatley defines exactly what you need to do with it.

    ****

    Banks also aren't investment companies. They are savings accounts for short term goals.
    Thank you Sauron, solid advice.
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    Instead of making a new thread.

    My investment has matured and I have withdrawn the amount.

    Instead of reinvesting it I want to pay off the car (10.5% rate)

    Then use about 50% of car payment money every month and put into the bond.

    What do you guys think?

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    Quote Originally Posted by xcaliber View Post
    Instead of making a new thread.

    My investment has matured and I have withdrawn the amount.

    Instead of reinvesting it I want to pay off the car (10.5% rate)

    Then use about 50% of car payment money every month and put into the bond.

    What do you guys think?
    Pretty solid concept.

    You are getting a return at the rate of your interest on the home loan and freeing up debt and monthly cash flow.

    Personally, I would dump the entire car payment into the home loan and track it on a spreadsheet.

    Twice a year take that 50% extra you paid in and pay yourself a bonus with it.


    Assuming it's a flexi/access bond you can draw the money out as need be as long as it's more than a grand.

    "Storing" it there for extended periods even if you plan to use it later is saving you interest every month.
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    Quote Originally Posted by SauRoN View Post
    Pretty solid concept.

    You are getting a return at the rate of your interest on the home loan and freeing up debt and monthly cash flow.

    Personally, I would dump the entire car payment into the home loan and track it on a spreadsheet.

    Twice a year take that 50% extra you paid in and pay yourself a bonus with it.


    Assuming it's a flexi/access bond you can draw the money out as need be as long as it's more than a grand.

    "Storing" it there for extended periods even if you plan to use it later is saving you interest every month.
    Thanks for the help

    Home loan is at 10.4% so not really a big difference.

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    Quote Originally Posted by xcaliber View Post
    Thanks for the help

    Home loan is at 10.4% so not really a big difference.
    Well in the current financial climate you would strike it very lucky to earn 10.4% on the money and likely to do much less.

    So settling your home loan faster is a win win.

    If your surplus is R10,000 in your access bond that's R86 a month to make the bond "free" from service fees. if it grows it becomes significantly more.

    R50k in surplus "makes" you R433 a month.
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    Quote Originally Posted by SauRoN View Post
    Well in the current financial climate you would strike it very lucky to earn 10.4% on the money and likely to do much less.

    So settling your home loan faster is a win win.

    If your surplus is R10,000 in your access bond that's R86 a month to make the bond "free" from service fees. if it grows it becomes significantly more.

    R50k in surplus "makes" you R433 a month.
    Thanks man

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    Ja, always first pay off the debt.
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    Anyone Here listen to the Fat Wallet Show?

    Its a South African podcast, its actually given me some really great insight into investing.
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    Ryan Serhant always helps me determine what is relevant for investment today. Try it.

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