M23 1.1 mil

[danieldior]

I have over 1 million rand in savings, what would be the best long term investment option. I have looked at bonds and the S&P 500.

I would like to have interest be above 5-9% a year.

What would be the best approach, I’m not expecting a lot

My risk tolerance is quite high

Any ideas?

 

[faith4l]

@danieldior Without knowing much else of your financial position or your definition of long term, assuming 10+ years. USD account into Vanguard Total World (VT). Reduce risk closer to the end of your timeframe in conjunction with your overall financial position.

USD due to cheaper fund costs like VT vs local (ZAR) options like 10X Total World or MSCI ACWI.

VT as it is already diversified in the nature of capturing most of the global stock market at their respective market weights, include small, mid, large cap across both developed and emerging markets.

 

[fxk]

@faith4l I believe it is better to invest in ETF's that are not US domiciled. SWDA is the equivalent of VT if I remember correctly.
Google Bogleheads

 

[faith4l]

@fxk SWDA is not the equivalent. And no, it's only better from an estate tax point of view once you actually reach the break even point. There is dividends tax leakage on foreign investments via US domicile, but needs to be more that non-US, or rather, Irish domiciled fund expenses as well in order to actually be better.

If you google Bogleheads and go through the foreign investor section and take the DTA and tax treaty agreement into account, you can work out the difference and break even point.

 

[danieldior]

@faith4l I make around 100-120k a month

Self sufficient day trader
Weekends I work as a chef ( +6k)

I was looking into dropshipping but I don’t expect that to work

Any businesses that are worth it nowadays?

Seems like every industry is saturated

 

[bea2947]

@danieldior Why is this downvoted , that’s impressive, I would recommend learning about the macroeconomics of the USA, looking at historical data since the 40’s we are almost certainly heading towards a major recession, knowing where to put your money at that point will be life changing.

 

[programofficial]

@bea2947 Because finance subs don’t believe in day trading or trading of any sort. They believe only Warren Buffet can make money when not blindly throwing money at ETF

 

[rehem]

@danieldior You can find a lot of safe investments at that return. The S&P 500 is smack bang in the middle of that range, and it's generally considered one of the safest investments. I'd recommend keeping it safe as your job is not 100% stable. If you want a short term investment, maybe a South African bond or fixed deposit at 8.6%

 

[klaas]

@rehem When you say smack down in the middle, you mean 7% ?

Why would you do that, when, as you say, a fixed deposit at a bank gives close to 9%

 

[klaas]

@rehem When you say smack down in the middle, you mean 7% ?

Why would you do that, when, as you say, a fixed deposit at a bank gives close to 9%

 

[rehem]

@klaas Because we don't know how long interest rates will stay high in South Africa, and a fixed deposit locks your money away while an S&P 500 investment is liquid

 

[klaas]

@rehem When you say smack down in the middle, you mean 7% ?

Why would you do that, when, as you say, a fixed deposit at a bank gives close to 9%

 

[raika]

@danieldior Sa retail bonds,11.5%

 

[skylaradams]

@danieldior Look at some Qualified Investor Hedge Funds. Fairtree Wild Fig QIHF has a very good track record. Welcome to DM me for more info.

 

[zoster]

@danieldior You are rich enough to get a professional instead of asking redditors.

 

[chifunmi]

@danieldior Bro what is your job if you don’t mind me asking?

 

[taepdec]

@chifunmi He's talking Kak lol

 

[chifunmi]

@taepdec Ah I just saw he says day trader

 

[wdford1991]

@chifunmi A day trader making 100k a month, but wants investment advice.. from Reddit.. ja nee

 

[danieldior]

@wdford1991 100k ZAR = $5000

It’s not a lot of money

Lived overseas

If you ever been to the us , 5000 a month is not alot

I risk 1% of my account

My loss risk is 0.5%

$300/pd

My total account equity is R2,341,723