What do you see as the current best investment to make in the RSA

[katzby23]

As the title explains i’d like to gauge what South Africans currently view as the best investment an individual can make with their surplus funds.

Fixed deposits? Bitcoin? JSE? Property?

Everyone has a unique insight and I’d like to see if there are any interesting suggestions that come up.

I’d like for the suggestions to be for passive income and/or long term investments. I.E. cannot use examples such as day trading as I believe that is actually a full time job and requires a certain level of skill.

For arguments sake let’s take a theoretical amount of R100k in cash, with the option to finance and additional amount if you think the return on investment would exceed the finance costs.

 

[vancouverguy]

@katzby23 A diversified portfolio that matches your long term goals and risk profile, is as tax advantaged as possible and that you can afford to leave invested in market downturns.

Which means it takes into account your context and financial situation fully, and is not necessarily just one sector or instrument like the majority of the answers you're going to get.

 

[katzby23]

@vancouverguy When you say portfolio do you only mean JSE shares or do you mean across the board?

Goes without say that diversification helps to hedge against risks. But what specifically do you deem a good investment.

 

[vancouverguy]

@katzby23 Across the board. Whether you have bonds, international ETFs and stocks, property funds, RA, fixed interest etc all together.

And that's exactly why I did not mention anything specific, because without knowing the rest of a person's situation there is no single 'best'. US stocks might outperform SA bonds on average but if a person is a year from retirement and overexposed to US stocks for their risk profile then more US stocks is NOT the best investment for them.

A primary property might be a good buy in the right area, a third property for someone who doesn't have any equity exposure probably wouldn't be.

Anyone who replies just 'property' or 'tesla shares' or 'bitcoin' is not giving any value to your question

 

[katzby23]

@vancouverguy Awesome man! Love that and it’s really sound advice to not have a cookie cutter approach to everyone’s situation.

For this post though it’s just for fun, and I’d like to know what you think is a good investment. So if you had the funds available what would you do.

Hoping that maybe this thread has some unique investment ideas or strategies.

Appreciate the interaction!

 

[vancouverguy]

@katzby23 I would continue to DCA into my post tax ETFs like normal. TFSA is maxed and I have regular RA contributions to decrease my income tax. I have interest income up to the non-taxable limit.

I have some individual SA stock pics and crypto that I look at as fun money and separate from my plan and normal investments

 

[faith4l]

@katzby23 There is no such thing as the best investment.

There is however an optimal portfolio (or rather, close to one) out there based on ones holistic financial position.

If you want a simple broad answer, capture the market via cheap index funds like MSCI World, MSCI Emerging markets for long term goals and short term should be capital preservation.

Learn more about how capital markets work and how to determine risk. What exactly is diversification, why do we do it, how is it achieved. What is modern portfolio theory? What does market efficiency mean for my investment decisions? etc.

 

[anthony8]

@katzby23 solar

 

[katzby23]

@anthony8 Very interesting answer

 

[lzaccaro]

@katzby23 SA Retail Bonds or money market accounts if you require liquidity.

 

[airel]

@katzby23 If you're young. An education (from academia, trade school, self teaching, etc, whichever is relevant) in a career-worthy field.

If you're . Investing time in an education in personal finance.

 

[robvasi]

@katzby23 My two cents are:

1. Invest first and foremost in your own financial education and understand how different investments work etc
2. If you have a home loan then I would most likely prioritise putting the extra in here
3. Bitcoin and possibly Ethereum if you have the risk appetite for it, many will oppose this. Time will tell like it has with many other things in the world, heavy resistance is always expected, many great inventions and industry changing ideas were heavily opposed. That is why I say if you have the risk appetite for this then I think this is well worth the investment
4. TFSA, only as long as you are in control and remain in control of your money

Any long term pension type savings is a waste due to the fact that the ANC controls and regulates this as they wish, any money you put in cannot be accessed as you wish. This really is no longer your money once you invest in one of these vehicles.

 

[alexll]

@robvasi RA with private company should rather be opted for than any Government pension right..? Point is RA as much as possible due to TAX benefits…

 

[robvasi]

@alexll RA is better but again access to your own money is restricted and since it falls under the pension savings banner there are rules and regulations regarding it that can, will and have changed over time. You used to be able to withdraw everything from your RA for example, now you can no longer do that and regulations will most likely change again in the future.

TFSA is for the time being (unless they change regulations) a much better investment if you are young. Reason for this is you get to withdraw any growth tax free and you also get to invest in much higher growth/riskier underlying assets that you cannot do in an RA since it is once again regulated far more.

 

[alexll]

@robvasi Understand this yes, however how are you getting around paying all that TAX if you don’t invest as much as possible into an RA..?

 

[katzby23]

@robvasi Awesome answer thank you!

 

[magdaleen]

@katzby23 I invest a percentage in BTC

 

[apryll]

@katzby23 Right now

I'm red in virtually all my JSE stuff. But luckily I haven't put in much lately.

Crypto is doing well for me, I'm in the green (mostly just BTC /ETH. I'm up 30-40% over 6-7 months.

But right now the US market is killing it for me, Tesla is doing +45% .

But Looking to sell my US stocks and crypto soon, take profit and use it towards paying off the car.

As for best investment, all depends on you, your risk tolerance and investing goals. Personally a well diversified portfolio over many sectors and many regions is ideal.

 

[katzby23]

@apryll Great answer!

 

[arwyn7]

@katzby23 Immigration.