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Kids school fees

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Regular Contributor
I have R100,000 which is for my kids school fees for next year. I would like to invest this money for the next 6 months, where should I put it? I would like to get a better than average return, so I was thinking about either: - Buying one of the Satrix products, or - Keeping the cash; or - Combining it into the rest of my portfolio and just liquidate some of the investments when I need the cash? Any advice would be helpful.
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33 REPLIES 33
Valued Contributor
in the bank .. 6 months is way to short term for the stock market .. what if the market drops 20% in the next 6 monhts ?? now your kids don't go to school ??
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Super Contributor
Just keep it in SBK OST money market account. 5% interest is better than nothing. Agree with Simon, way too much uncertainty in the market to think you can invest for 6 months and turn a profit.
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Spoegs
Contributor
My first response was - R90k short the rand (its got to devalue sometime), R5k happy pills to get you through watching what the rand does over the next 6 months, R5k for one months rent in case your wife finds out what you've done with the cash. Simon's answer is probably the right one though.
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Regular Contributor
Thanks for the laugh! You guys are right I was being silly :)
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Frequent Contributor
Hi sugegst you negotiate a 10% discount and pay the 90 % now for school fees next year. You can invest the 10 % on the stock market with no issues. only down side is : school may close down or kids decide not to got to school Try it , you may be surprised that the school could down and do do with the cash flow injection this year.
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Frequent Contributor
Hi sugegst you negotiate a 10% discount and pay the 90 % now for school fees next year. You can invest the 10 % on the stock market with no issues. only down side is : school may close down or kids decide not to got to school Try it , you may be surprised that the school could do do with the cash flow injection this year.
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Super Contributor
That's a good suggestion.
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Highlighted
Frequent Contributor
Pls don't get divorced it's going to cost you big time know someone who married ANC without accrual now she is claiming R 15,000 per month and half of the R5 million house.
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Frequent Contributor
Pls don't get divorced it's going to cost you big time know someone who married ANC without accrual now she is claiming R 15,000 per month and half of the R5 million house.
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Frequent Contributor
Pls don't get divorced it's going to cost you big time know someone who married ANC without accrual now she is claiming R 15,000 per month and half of the R5 million house.
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Frequent Contributor
Pls don't get divorced it's going to cost you big time know someone who married ANC without accrual now she is claiming R 15,000 per month and half of the R5 million house.
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Super Contributor
er, yes, Goldbull, thanks for that. Re kids - home school and have a big party with the 100k. Kids are very ungrateful when they grow up.
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saki
Not applicable
Flip the coin.
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Super Contributor
The trick is: To always swing this unreachable carrot and they will all be very nice to u. If u give it away buying their empty promises..u gonna be very lonely !!
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Frequent Contributor
My first posting should read "married ANC with accrual" this is how your partner can clean you out. In the case of divorce always but always make it "ANC without accrual". Just to reiterate my friends kids are grown up, he has his own business where he employed a charted accountant. His wife got too involved with the accounts and had the accountant kicked out. After 18 years of marriage she initiated a divorce. The result she gets R 15,000 per month and half the homestead R5 mill. Don't say it cannot happen to you?
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Not applicable
Brilliant advice....I have one trade post SWC....long dollar/short rand...however I would dedicate a larger slice to happy pills though!adios
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Pluto
Contributor
I'm coming into this discussion late. There has been sentiment posted that gains cannot be made in 6 months so rather put the money into a money market account or seek a discount by an early payment. These are low risk options that guarantee the retention of capital. My take is in 6 months in the current market climate a return of 20-30% is attainable by careful selection of strong sectors and strongest shares in the sector. Entry MUST be based on high probability support areas so your TA must have a sound basis. This is not a theoretical discussion as I have done this for clients in the last 2 months.
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Valued Contributor
so lets cut to the chase .. will you guarantee me 20-30% by year end ??
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Pluto
Contributor
There is no such thing as an absolute guarantee in the share market because you do not know what is going to happen next. You have to understand the risk-reward relationship - you have to take on risk to get a reward - the trick is in using TA to give you high probability trade setups that makes the risk small in relation to the reward. So in this senario I would be prepared to take on risk that might reduce my capital by a maximum of 10% to get a reward of between 20 and 30%
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