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What to do with 1 Million Rands

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Contributor
Gents If any of you guys had R1m spair cash ...What would you guys do ? Hope to here some great ideas ... Cheers VUSI
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Contributor
Buy a vintage car(jaguar) and buy hugo boss suit,perfume and italian shoes,Ray ban glasses hit the night clubs
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Contributor
I already have that ... Tell me if this sound realistic: PV = R1m PMT = 0 NO YRS = 20 Return P/A 20 (Inc Div's - assume Div's are reinvested). FV after 20 yrs = R 38m Working on a 5% div payout p.a after year 20 , that works out to about R1.9m per annum or 160k per month ....Sound enough to live on ? Lets check : A livable salary of 30k per month now : In 20yrs are - the equivalent (assuming inflation of 8%) is R140K Per Month ... Ok Gents --- What going to give me 20% (inc dividends) for the next 20 years ????
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Super Contributor
you will need to create a diversified long term strategy that uses multiple asset classes, i would think multiple geographic locations could also help, where you don't try to buy shares that have enormous growth and high risk, but rather a consistent future with above average growth prospects, this would have to be researched and fit to your profile - its hard to say exactly which companies will do well. e.g. i got some US bank shares at a very good time, but now might not be so good for some of them anymore, other considerations would be preference shares with good dividend yield as well as more capital gains orientated shares, combining together you get good annual income which can be allocated to discounted opportunities over the years which would give you more possible gains as opposed to holding investments that only appreciate and don't allow you to enter other value opportunities - i hope this makes sense... this is what i am trying to do - some of my investments are not huge dividend yielders right now, but they will be in the next 2 years or so when times get better, then my entry will yield excellent results - this is how my long term views work...
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Super Contributor
20% inc divi would be reasonable if divi consistently hits around 5% and Capital growth is at about 15%. Give us an index on what all those abreviations are exactly, as I'm not following your math of getting ave R1.9 mil per year over 20 years? Or is that 1.9 for the full 20 years ....
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Super Contributor
So what are you going to do with the remaining of the 9ooK
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Valued Contributor
long term average of the Top40 including dividends is around 18-20% ..
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Super Contributor
and if you throw in a chunk of BATs shares you will out perform the Alsi..with a 5% div yield
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Super Contributor
Ok - so who feels like throwing in a 20yr time value of money calc into that equation - will R198kpm still be enough to maintain our std of living?
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Super Contributor
Ok - so who feels like throwing in a 20yr time value of money calc into that equation - will R198kpm still be enough to maintain our std of living?
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Super Contributor
Ok - so who feels like throwing in a 20yr time value of money calc into that equation - will R198kpm still be enough to maintain our std of living?
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Super Contributor
Argh - its monday morning - I'm clearly not concentrating. Seems like a feasable calculation. Its a pitty it needs the full 20 year term to reach the BEP. No 10 year shortcut!
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Super Contributor
Buy GLD! And hold on to Gold for the next 5 Years. Major currencies are going to be shaken i.e. $, Euro, Pound, etc - all heavy indebted nations' currencies are going to lose lost of value.
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Super Contributor
Buy a house on the beach and make sure you pay 996 thousand so you have R4000 for a new board .Money is zero value unless you can live it . No use having a million if you cant live a million
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Valued Contributor
four grand for a board ?? noot .. R1k for the board and R3k for wine ..
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Frequent Contributor
The Mayan Calendar ends in 2012 and as per doomsday profits...the end of the world...:)...pay the 1 Mill in my account...I'll pay it back after 2012....lol
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Not applicable
Get Khanyi Mbau to spend it for you
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Super Contributor
How old are you Vusi ? See if you are in your 80's I'd spend 99% on exclusive call girls and 1% on viagra. 70 - 80: spend half on wheels and half on exclusive call girls. Leave a small amount for viagra. 60 - 70: 25% in a share portfolio (JSE, SOL, VOD, BVT, TBS, BTI), 25% in a moneymarket fund, 25% on a world tour, 24% on my children, 1% on a one night stand. 50-60: 50% in a share portfolio (JSE, SOL, MTN, TBS, BTI, REM), 25% in Satrix RES, 23% Money Market Fund, 2% on wife. 40 -50, 75% in a share portfolio ((JSE, SOL, MTN, TBS, BTI, REM, SBK), 20% in a money market fund, 5% on wife. 30 - 40: 80% share portfolio (JSE, SOL, ALT, REM, NPN, MTN, TBS, SBK), 10% in a money market fund, 10% on wife, 20-30: 100% in a share portfolio (JSE, SOL, ALT, REM, NPN, MTN, DSY, TBS, SBK, BTI). Under 20: Clothes, car, playstation, flat, booze, paries, condoms etc.
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Contributor
Kwagga , thanks ..that probably the best answer to date... To the rest thanks ....for your comments ..even to those who's comments were of comical value...
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