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Quote from: MoneyChief on June 28, 2017, 03:36:54 pm

Quote from: Hamster on June 28, 2017, 02:51:29 pm

EDIT: assuming that the average person is not money savvy and have no pension fund forced on him over his 20 years of working.

Surely your pension fund is part of your net worth calculation.

MC - not sure what your argument is 1)whether no provision out of gross is recorded as a contribution towards a pension, or 2) a pension payment ex employer is part of ones overall wealth. If 2 then I don't consider it as part of ones wealth as it is in the same realm as a monthly salary and there would only be a portion which would contribute towards your wealth if you set aside a portion and invested it. Also I am not sure how you would factor in ones salary/pension future value as part of your future wealth - the reserving of a portion would contribute to wealth creation, but, the future value of salary/pension should be excluded

My point is that money saved in your pension fund is part of your net worth. If you contribute 20% a month to your pension, you are saving 20% essentially. I don't think we should make this stuff too complicated.

A person with R1m in their pension fund and nothing else is better off than a person with nothing at all.

Well, according to Payscale, the average South African earns the following salaries:

Less than 1 year experience: R135k
1 to 4 years experience: R154k
5 to 9 years experience: R231k
10 to 19 years experience: R293k
more than 20 years experience: R356k

Taking these numbers and assuming a savings rate of 20% and the ability to grow your assets by 10% a year, your projected net worth for the number of years working should be:

Year   Net worth
0   R0
1   R27,000
2   R58,300
3   R94,330
4   R135,563
5   R182,519
6   R238,371
7   R304,008
8   R380,409
9   R468,650
10   R569,915
11   R682,107
12   R806,317
13   R943,749
14   R1,095,724
15   R1,263,696
16   R1,449,266
17   R1,654,193
18   R1,880,412
19   R2,130,053

If your net worth is above the average numbers you are doing well.

Quote from: Moneypenny on May 23, 2017, 08:40:40 am

Love synchronicity 

I've registered 15 minutes ago for a seminar this Saturday at Midrand for emigration to Aus/Nzl.

I stayed at a guesthouse on Wednesday where the owners were espousing the virtues of New Zealand. They plan to keep their guesthouse and other properties and relocate to NZ.

Afterwards they apologised for sounding like recruiters. Go figure.

Ah, New Zealand, the land of insanely high house prices, slow internet and bad weather.

The best option looks to be Nedbank, with 9.56%

That should be safe. I hope.

I am surprised that nobody has pointed this out yet, but you are about to commit one of the biggest investment mistakes there is, putting all your eggs (or almost all) in the same basket.

Open up multiple accounts at different banks and spread the risk. I have four investment accounts at four different companies and two bank accounts at two different banks.

Investment mistake 2, putting too much in cash. You do need some cash, but not too much. Once you have enough cash to fund 6 months or max a year of expenses, you really don't need any more cash.

Investment mistake 3, having too much capital in Rands. Try to get some international exposure.

Do you have any debt or a home loan? Pay that off first.

That I understand, but I feel that is a flawed economy, because... Correct me if I am wrong, but does this not basically mean we export our raw materials for next to nothing and then we buy back the expensive refined and processed products?! Thus we will never make money as exporting to buy back the end product will always be more expensive.

Should government not start creating companies that can use our raw resources to manufacture products we can sell to other countries instead of other countries buying our raw resources for bottom price and then they manufacture products and we end up paying 10 times more to buy those products which we could've manufacture our self?

Not all exports are resources/commodities. I work in the service sector and we export intellectual property for vast sums of money. The service sector is by far the largest sector in SA and I suspect a lot of trade is in IP.

What is the longest time you can go long on Forex?

I mean there's not a lot of guarantees in life, but in the long term the zar will always weaken against the USD.

So a geared position going long for 30 years should yield a interesting result no?

Betting money on Forex is an excellent way to lose a lot of money. Been there, got the T-shirt.

Tax