Hi guys
Lots of friendly folk on here (Orca included
), and i would like to see if someone can bite the bullet and help some of us out.
I am still very green on this, and would like someone to explain in plain English (if thats possible
), what am i to do.
the obvious question - where best to invest my money
.
What i try to understand, is if i should choose a bank do do my investments ( lets say R1k per month with inflation), or should i directly buy shares with that.
At a bank, they will pay me annual interest monthly at a small % rate, but the interest is straight back into my account, and thus next month its interest on top of interest. thus after a few years this could really work.
but if i should go with a shares platform ( lets go with the satrix INDI), what will the end result be? eg if i use dividents to buy shares again each 3months, for about five years, what will the resulting fee be?
eg month 1 , R1k shares, month 2 R1k shares, Month 3 R1k shares, month 4, R1k shares + dividents, and so on
Complicating the question more is obviously how does tax affect both scenario's? i don't remember ever submitting my interest gained via bank account to SARS, but it seems to be a very strict thing when looking at shares...
Also the next thing that comes to mind, is which platform to use to go for the long term ( ie i wont be buying and selling - just a constant monthly "investment"). Is the usual FNB/ Standerbank platforms too expensive in terms of monthly costs and brokerage fee's? what other options does a guy on the street have ( without having to shell out R100's of thousands). Brokerage fee's is something i don't usually pay in the bank scenario, which could affect the comparison i guess..
hope this discussion will help other people in the future too
thx guys
Show Posts