MyMoney Online, Personal Finance with Warren Ingram

What is better - money in the bank or investing in shares?

If you have five to seven years or longer; then you can start to invest in shares…

Warren Ingram, Personal Financial Advisor - Galileo Capital

A regular listener of Bruce Whitfield’s The Money Show asked the following question:

It's been stated on numerous occasions on The Money Show that investing in shares earns one compound interest. You even had an example of a young lady, I think it's Julia, who's saved millions and earns compound interest through shares. I've had an online share trading account for many years and have never seen any interest. I've been wondering if this is a fact. I called my online share services provider and I was told they are not allowed to discuss compound interest with me as they are non-advisory. When I asked why I do not see such credits in my account, I was told it’s because they don't offer such interest. Is it perhaps about a type of broker I'm using?

The Money Show listener

Arabile Gumede (in for Whitfield) asked Galileo Capital personal finance expert Warren Ingram for an answer.

Compound interest vs compound growth

Money in the bank earns you interest.

Over time; the interest compounds (i.e. you earn interest on interest).

When you invest in shares; you reap the growth in value of those assets.

They may sound like the same thing, but they’re not.

Which one is better; money in the bank earning compound interest, or investing in shares?

It depends whether you’re playing a long or a short game, said Ingram.

For more detail, listen to the interview in the audio below (and scroll down for more quotes from it).

Don’t start thinking about investing if you have bad debt. Credit card debt, personal loans, overdrafts, microloans, store card debt…

Warren Ingram, Personal Financial Advisor - Galileo Capital

You always need an emergency fund… About three to six months’ expenses… that you can keep in a money market account at a bank…

Warren Ingram, Personal Financial Advisor - Galileo Capital

Investors are starting to think the stock market will never ever go up again… a common mistake investors make all around the world…

Warren Ingram, Personal Financial Advisor - Galileo Capital

Our stock market consists of many companies that operate right around the world… It’s not a reflection only of our economy…

Warren Ingram, Personal Financial Advisor - Galileo Capital

It’s not that I’ve been smoking some heavy stuff or drinking too much… what I do know is that patient investors… get the reward…

Warren Ingram, Personal Financial Advisor - Galileo Capital

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Naspers fell 30% after listing its spin-off Prosus. Here’s what happened…

Naspers fell 30% after listing its spin-off Prosus. Here’s what happened…

Prosus is now the holder of a 31% stake in Chinese tech giant Tencent. Financial educator Simon Brown explains.

Busloads of Nigerians arrive at OR Tambo to go back to their country

Busloads of Nigerians arrive at OR Tambo to go back to their country

Nigeria this week said it would repatriate 600 of its citizens. The first two busses arrived at OR Tambo on Wednesday morning.

Nando’s is the boss of Pick n Pay ('iNkukhu'),  says ad expert Andy Rice

Nando’s is the boss of Pick n Pay ('iNkukhu'), says ad expert Andy Rice

“Pick n Pay dug themselves a hole, then jumped into it,” says branding and advertising expert Andy Rice.

Julius Malema (and the EFF) spent poor people’s stolen money - Pauli van Wyk

Julius Malema (and the EFF) spent poor people’s stolen money - Pauli van Wyk

They broke the law and spent money stolen from poor South Africans, investigations by Scorpio journalist Pauli van Wyk shows.

Nigeria calls for sanctions against South Africa

Nigeria calls for sanctions against South Africa

"Enough is enough," said the Nigerian government in an official statement.

'The baby is lying there, and she just starts hitting him, seven times!'

'The baby is lying there, and she just starts hitting him, seven times!'

Police expect to make arrests after a video surfaced of teachers assaulting a baby and small children at a Randfontein creche.

Popular articles
'Duke and Duchess of Sussex visit highlights goodness of South Africa'

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

Professor Pitika Ntuli weighs in on Prince Harry and Meghan Markle's tour of the country.

Audi Q8 'marries elegance and practicality', but it comes at a price

Audi Q8 'marries elegance and practicality', but it comes at a price

'Large and in-charge' - Motoring journalist Naresh Maharaj rates Audi's new luxury SUV offering.

4 things you should never say if you want to get rich

4 things you should never say if you want to get rich

Don’t ever say or, worse, believe any of these wealth-destroying platitudes, implores personal finance expert Warren Ingram.

Fraudsters are getting professional, scamming consumers with ingenious methods

Fraudsters are getting professional, scamming consumers with ingenious methods

“It makes all of us a target to fraudsters,” warns Manie van Schalkwyk of the South African Fraud Prevention Service.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.

46 women rescued in Joburg sex trafficking raid

46 women rescued in Joburg sex trafficking raid

An expert on human trafficking explains how the syndicate operates and how women are lured into dens.