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Super Contributor
My kids, 18 and 16, have asked that I invest there savings (R100 k) for about 2 years. Do I buy Satrix, shares or leave he money in the safety of the bank?
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12 REPLIES 12
Frequent Contributor
There are basically two main consideration when investing - Risk and Reward. You have to ask yourself, how much can I risk and what sort of returns am I expecting. Can you risk your childrens's money on the market and what risks are involved in putting the money in the bank. Then consider Satrix, what risks and returns are involved, then make your decision.
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Regular Contributor
Probably the worst idea would be to invest in the markets now. This buy at basement prices is a load of rubbish. Just because its cheap doesnt mean its a bargain! Its cheap because theres no confidence in equities right now. Pretty much everything is tanking so probably invest in something showing a lower decay that others. Having cash at hand never hurt anyone. Some gold dubloons as well :) Tell the kids to learn chinese or something cos i guesss that theyre gonna come out of this rubbish a little healthier than the others. Better still, advance their education better, cos when all else fails, the best currency that anyone has is their skill. And in the forthcoming scenario of increasing unemployment, the ones with weaker skills and abilities will be culled. OMO
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Super Contributor
If that was my situation, and I wasw 18. I would slowly phase the 100k into 10 parts into satrix etf as the market dips say 5-10 % a time.
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Not applicable
I guess particularly the 18-year old will want to start spending the money soon (car, etc). These timescales may be too short to effectively invest in Satrix. Best thing though is to discuss the options with them, make recommendations, but let them make the final decision.
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Super Contributor
i 've got shares, property,own business-i think keep it in cash -sounds boring-put it in the bank then ask yourselves how safe is the bank
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Regular Contributor
Wow. 2 Years? That's way too short for equities. Unless you're going to do derivatives and get it right, I can't see that putting it in the stock market could be a good idea. Buy them a couple of books on investing & speculating. Let them tell you what they think and give them help with that. Until then, do nothing :-)
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Not applicable
Best bet, withdraw the money and keep it under your matress.. :-)
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Super Contributor
Nothing but 9%+ pref shares or fixed income funds for the next two years at least. Maybe a play on gold once it goes below $700.
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Super Contributor
Sorry - I must ask - where the hell do kids get to save R100K??? If you are that rich you should not be asking that question...
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Not applicable
I like Electrox's strategy - invest 10% at a time in Satrix with the buy signal now and again every 5 or 10% drop with a maximum of 50% of total invested in the downswings. Once the market rallies, enter with the remaining 50% + what is still left - buying when the moving averages cross over - 50% each when 15 crosses 30, 30 crosses 60. Just a thought - not a suggestion!!
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Super Contributor
Money market for now and checkout Allan Gray's equity fund for the longer term. They're not perfect but they're a heck of a lot better than most of the money damagers because they have a longer-term view. Look at older graphs and how they handled previous (e.g. 2000-ish) downturns - generally better than the indexes, and much better than competitors.
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Super Contributor
Thanks guys, appreciate the advice. CrownA by the way, where the money came from is irrelevant but if u really need to know e-mail me on [email protected]
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