Extra 250k, Where to invest it ??!

[dayna]

Happy Tuesdays y’all

So I have been working and hustling my whole life and I finally found something I’m good at. I have been buying up damaged cars fixing them and selling them for about a year now and I’m 250k in profit.

I am financially woke but I am open to hearing what people have to say about investing this 250k.

I contribute to a RA, TFSA, personal investments ( Crypto and some stocks i own)

I am working full time but I sell cars part time.

So my question is where can I put this 250k to good use.

I was considering putting all of it in Tyme bank to earn a good yield on the money but I’m very sceptical on the % ( Reason being is because I lost over R 1M in Terra Luna ~ Anchor protocol) so as you can imagine such high yields scare me.

 

[ffriemann]

@dayna No advice from me, I just want to commend you on your work ethic. Truly to be admired.

 

[dayna]

@ffriemann Thank you

 

[yell]

@dayna Consider putting some of that into your shop (some equipment, a place to keep the cars, a website for your parts). Reinvesting in yourself can multiply your investment pretty drastically.

Otherwise I recommend investing internationally (interactive brokers + index funds, do a bit of research, but I'd recommend either the American or global index funds), since inflation is pretty noticible, but if you want it to be liquid, check out money market accounts with your bank (they have different names, but generally they give you good rates if you invest over 100k, but anything below that you don't get anything).

I generally can't recommend the local investment firms (not many of them have beaten inflation consistently since 2010 and they don't make it clear how they are performing + fees + penalties)

 

[levi777]

@dayna Great stuff man. Love to see grinders getting the bag.

• First decide on your investment horizont. If you have time, invest into things that can go up and down but pay in the long run.

I personally do "dollar cost averaging" across EUR and USD portfolio.

For USD, I have index fund to copy S&P500 (VOO).

For EUR, I have different ETF to copy European markets.

You can also add other ETFs for Asia, etc.

Then just maintain investing ethic as you do with work - every month, same amount, same date. Doesn't have to be too much - you can put R1000 for USD index fund, R1000 for EUR.

Just stay true to the averaging - no matter if markets go up or down, you always buy funds worth of the fixed amount. That way, you get more in the crashes, and less on the highs. It evens out over time, and I have started seeing profits after about a year. For sure I am ready I might even go negative, but in the long run, it will be some money for the retirement.

Good luck and kudos to you boss.

 

[dayna]

@levi777 Thank you very much, I’ll definitely take a look into this

 

[vancouverguy]

@dayna It is difficult to comment without knowing your current picture in more detail. How much is in the RA/TFSA and what are they invested in? What is the risk profile of your current investments?

Tyme bank is a real and registered bank in SA, not at all a crypto ponzi scheme like Terra

 

[mizmelzywi]

@dayna If you're looking at low risk, relative high yield and safety, I'd recommend Investec fixed deposits. Good rates and guaranteed earnings.

 

[dayna]

@mizmelzywi Thank you, I’ll take a look at this

 

[merlon636]

@dayna Government retail bonds - returns at the current interest rates are healthy

 

[dayna]

@merlon636 Definitely taking a look into this. Thank you

 

[angelic143]

@dayna Tyme bank has limits on how much you can save. I’m not sure about the fixed deposit but the normal savings account is a maximum of R100k.

 

[dayna]

@angelic143 Thank you , I’ll take a look at Tyme bank

 

[merlon636]

@dayna Look at absa dynamic fixed deposits too - interest rate is 10.5% I believe

 

[pragyana]

@dayna Can look at Rsa retail bonds, but all interest is taxed over R23800, so best bet is your bond first then shares if you know what you are doing first R40000 capital gains is tax free per year, tax free account R36000 input per year

 

[dayna]

@pragyana I’m very new to this so I’ll definitely take a deep dive into RSA Retail bonds. This sound very interesting, thank you

 

[pragyana]

@dayna Have to apply online which is a bit of a pain but interest rate is +_10%

 

[arwyn7]

@dayna Go offshore, this country is a bad investment that won’t pay off. If it all comes tumbling down you’ll be grateful to have funds outside this country.

 

[greenleaf62]

@dayna You have to be a more specific with regards to how long you want to invest the money. Is this emergency funds re can't take too much risk with it?

I'll be looking at fixed deposits (you choose your term) at a reputable bank if your TFSA is maxed out. RA's have their pro's & cons

 

[dayna]

@greenleaf62 Thank you for your advice. To be honest i think a max of 5 years. At the right I’m going if I can manage to get 1M I’ll definitely leave it longer than 10 years