Publish Date: 17/04/2018
Best investments today mean financial peace of mind tomorrow
Investing, at its heart, is the trading of your money today for a lot more money in the future.
Unfortunately, many people do not think about where to invest money early on in their lives. It’s only when they are nearing retirement that the penny drops (pardon the pun) and they realise the importance of having extra funds at hand to supplement their pension.
Another stumbling block is education. Many people are put off by the thought of investing as they believe that it is only for high-rollers or those who have thousands of Rands to play around with on the stock market.
This is far from the truth. Investing is not complicated, nor is it only for those with wealth. The best time to start saving or investing is right now — each cent will help you gain financial freedom in the future.
No matter where you find yourself in life’s journey, now is the time to consider the best investments and how to secure the best return on your investment. They more time you give your investments to mature, the more time interest has to work its magic.
Before you can determine where to invest money, you must know how much money you have to invest. Scrutinise your income and expenses to determine how much you have to invest into an opportunity that will offer you good returns.
You should be putting away about five to 10% of your monthly income – so, if you are bringing R15 000 home, then you should be investing between R750 and R1 500.
There are many short term investment options available to South Africans seeking financial security for the future — you can invest on the stock market, in unit trusts, a stokvel, retirement funds, Kruger Rands or buy an affordable fixer-upper that you can flip for profit a year later.
African Bank has investment management experts you can talk to about alternative investments, such as a fixed deposit or notice deposit account, our Access Accumulator or tax-free investing products.
If you are a pensioner, for example, a fixed deposit account is an ideal choice. This five year fixed investment product is ideal because you receive monthly interest income equivalent to 10.25% for your investment.
It is exciting to daydream about the possibilities when you have some cash to invest, but this is also when you could be at your most vulnerable if you are ill-advised or duped into a bad investment. Remember, wise investments bring good fortune and unwise investments bring misfortune.
5 important tips which can prevent you from making a bad investment:
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.