The JSE and finance forum for South Africa
General Category => Shares => Topic started by: Junz on May 26, 2014, 09:24:46 am
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Hi Guys,
I read an article a few months back see linkhttp://www.moneyweb.co.za/moneyweb-investment-insights/save-until-your-kids-are--50 (http://www.moneyweb.co.za/moneyweb-investment-insights/save-until-your-kids-are--50)
I am thinking about doing something similar, My son is 2 months old and this would be the perfect opportunity to save some spare cash for my son.
I worked out that a once off investment of R1000 over 50 years @ 15% return ( inflation inc ) would yield R 1 000 000 or 1 Million, which I worked out to be worth 55k devalued at 6% over 50 years.
so how do i go about this , is it feasible , how can i ensure that my kid(s) dont use the money before hand.
1. should i invest in a unit trust ( allan gray or coronation )
2. EFT's , what are my options here ?
3. Buy blue chip stocks ?
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Great idea. Every R1000 you put away will be worth R58k in today's money after 50 years: http://www.investorchallenge.co.za/calc_compound.php?initial_deposit=1000&monthly_deposit=&yield=15&years=50&inflation=6
If you can pick a company that will be in business and profitable in 50 years your a great soothsayer! I'd go for ETFs and avoid unit trusts for this reason: http://www.investorchallenge.co.za/those-fees-are-blatantly-robbing-you/
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I fully agree with P. For your purpose, Satrix is the way to go.
You can also substantially increase your gains if you buy at the correct times. For instance, the Satrix Indi ETF is too expensive right now but remains the best performer over time.
If I could, I would switch most of my stocks to SATRIX.
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Thanks for the reply guys
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I second the ETF route. Just keep in mind it is not a do once-and-forget thing. Learn all about it and compare. Be active. :TU: