@CiroDeSiena It's important to note that the last few years the market was really really good, and since you can't tell the future, it's typically a very very bad idea to invest borrowed money.
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Patrick
2.2K posts
Patrick
@TravelBugBitten
Typos are all the fault of autocorrect, obliviously.
Here, there, everywhere Katılım Temmuz 2011
373 Takip Edilen4.6K Takipçiler
@CiroDeSiena It's a simple question to answer: Was the total market return greater than the interest rate on the loan. Nothing else matters.
The global ETF I use, based on the FTSE all world index returned 18.5% over the last 3 years. The average car loan was +- 12%, so yes, investing won.
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People who can math, clock in!
My friends bought a car three years ago for R700,000 - cash. They might want to trade in soon so they approached the same dealer, who said best he can do is R350,000, the car is super low milage and in mint condition.
So my question is, would they have been better off financing the car and investing that lump sum? Or even just putting it in a decent interesting-earning account?
Would love to hear your thoughts on this, many thanks in advance.
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@MuloiwaThendo I once owned 3 houses, now I own none.
Buying is only better when you have a crystal ball and can see what will happen in the future, or if you're a terrible saver and owning a house forces you to save.
If you can save and invest you'll end up way ahead renting.
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I want to show you guys exactly the difference between renting and own. For the past 2 years I lived at this place in Victory Park rent was R12k. My unit was on sale for R1 400 000.
[Thread]
Hope Dlamini@HopePerfect_Dla
Buying a House is better than Renting a house ka 10K per month.
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🇿🇦How did SAPO go from being debt free with R10,65bn in cash and financial assets in 2019 to writing off R7,4bn of debt in 2024, despite a further R2,3bn capital injection in 2023?!🇿🇦 news24.com/business/econo…
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@EMukumbo @francgroup Every asset type has a purpose. Of course if the market crashed the pictures would have looked completely different.
Now that I'm no longer earning a salary I have some fixed income assets in my portfolio for the first time. Just enough to survive a few really bad years!
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The difference between saving ( money market fund) & investing (Satrix top 40 ETF) is evident in the two pictures below, I saved and invested the same amount of money in the two but after 5 years, the money invested (Satrix top40) has almost doubled compared to the savings ( money market ) on the left .Saving gives you easy access to your money in case of an emergency whilst investing, you take on more risk and have 'limited access' to your money but growth is 'faster' over time. That's why it is important to consider which one works for your goals and circumstances.
Saved Invested
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The rest of the world always knew this, it was literally only the Americans who thought their stock markets reach was enough to consider it globally diversified.
There have been many top economic powers in the past, it's foolish to think there won't be new ones in future.
Peter Mallouk@PeterMallouk
Start of 2025: ‘Why should I own anything outside of the US?’ 14 months later: South Korea +204%, Peru +143%, South Africa +108% … S&P 500 +18%. The future is unknown. That’s why you diversify.
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Really good to see this! In my opinion a TFSA is the best investment you can make as a South African. I rank it above an RA. moneyweb.co.za/news/south-afr… via @Moneyweb
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@mayaonmoney Given enough time though, going all in and taking the tax hit upfront will always win!
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In my latest podcast I'm joined by Janine Langenhoven, senior legal counsel at Ninety One.
We explore the often-overlooked tax benefits of exceeding the annual contribution cap on retirement annuities of R350,000.
We also discuss the dos and don'ts for parents who may want to give their children a head start on their retirement savings.
audioboom.com/posts/8863185-…
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@mayaonmoney I know but run the numbers long term. You're front loading your taxes which get paid outside of the TFSA wrapper.
You end up with a R500k investment you'll never have to pay tax on again in your life. I believe if you do this early enough, the long term tax saving is worth it!
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@TravelBugBitten You get hit with a 40% tax - so no, it does not make financial sense.
Langa, South Africa 🇿🇦 English
@iamkoshiek I once owned 3 properties, my home and two rentals. Being a landlord is at best a part time job, one where the stress to income levels don't add up.
I now own ETFs instead of properties, make significantly more from them and they cause zero stress!
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Johannesburg is a property owner’s nightmare 💔💔
inflation far outstripped property growth every single year for 15 years ⚠️
crumbling infrastructure, poor service delivery & absent leadership translate into a weak property market 🏚️😓
the result? a failed era for investors
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@RamonJThomasMBA @EasyEquities To be fair, the Rand usually depreciates faster than the dollar, so under normal circumstances you'll see gains as that happens, on top of any gains in the S&P500.
Personally I've only ever held offshore ETFs in my TFSA, and been very glad I did.
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@TravelBugBitten Yes, I am realising that investing in US ETFs using ZAR is a bad strategy. @EasyEquities never made that clear
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@EasyEquities @CharlesHSavage @carelnolte why is there such a big difference between the S&P500 index and the @sygnia S&P500 ETF in my #TFSA? I noticed the same difference with @Nasdaq 100 ETF. When I logged a support ticket, I received no explaination
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For the last three years my wife and I have lives on our boat in the Med. I've just added up the budget, and it turns out it's actually cheaper to live in paradise than in a big noisy city. Here's the breakdown: youtube.com/watch?v=-rJMiB…
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Rule of thumb for globally diversified ETF investments:
1. If price drops, just hold
2. If price goes up, just hold
Then smile knowing that your returns will be better than practically all the experts out there 🙂
Stocks World@anandchokshi19
Rule of thumb for investment in fundamentally solid stocks: 1. If price drops 10%, just hold 2. If price drops 20%, add 10% 3. If price drops 30%, add 30% 4. If price goes up 10%, just hold 5. If price goes up 20%, still hold 6. If price goes up 30%, sell 10% 7. If price goes up 40%, sell 20% 8. If price goes up 50%, sell 30% 9. If price goes up 60%, sell 40% 10. If price goes up 100%, sell all
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Yep I've owned all of these for over 10 years... In a global ETF, because I'm not a fortune teller and neither are you!
Jon Erlichman@JonErlichman
Value of $1,000 invested a decade ago: Nvidia: $250,311 AMD: $95,603 Shopify: $67,277 Tesla: $30,963 Broadcom: $25,920 Apple: $10,670 Microsoft: $9,137 Alphabet: $8,897 Netflix: $8,124 Amazon: $8,100 Meta: $6,638 Oracle: $5,465 Adobe: $3,866 Salesforce: $3,571 IBM: $2,404
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@JonErlichman Can you give me the list for the next 10 years please
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Value of $1,000 invested a decade ago:
Nvidia: $250,311
AMD: $95,603
Shopify: $67,277
Tesla: $30,963
Broadcom: $25,920
Apple: $10,670
Microsoft: $9,137
Alphabet: $8,897
Netflix: $8,124
Amazon: $8,100
Meta: $6,638
Oracle: $5,465
Adobe: $3,866
Salesforce: $3,571
IBM: $2,404
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