Streaming issues? Report here
Bongani Bingwa 702 Gradient Bongani Bingwa 702 Gradient
Breakfast with Bongani Bingwa
06:00 - 09:00
volume_up
volume_mute

Up Next: The Eusebius McKaiser Show
See full line-up
Breakfast with Bongani Bingwa
06:00 - 09:00

Home
arrow_forward

What are the best investment options if you decide to go it alone?

14 July 2019 2:50 PM
Tags:
Financial planning
National Savings Month
investment options
sound investment decisions
managing your money
Certified financial planner Paul Roelofse gives the lowdown on the money market, retail bonds and exchange-traded funds.

If you're choosing to go it alone when making investment decisions and not relying on an financial advisor, the devil really is in the detail.

Do your homework to ensure you can make an informed choice, advises certified financial planner Paul Roelofse.

RELATED: Tax-free savings - how to get more bang for your buck

Aside from a money market account which is handy for emergencies because it gives you instant access to your savings, what are the options?

Roelofse says RSA retail bonds are useful - although you can't tap into your funds this fixed investment has its own rewards.

They come in options of two, three and five years. It basically works on a fluctuating type of interest offering.

Paul Roelofse, Certified financial planner

You get a very healthy interest rate, slightly higher than the money market rate.

Paul Roelofse, Certified financial planner

If you are of pensionable age you can actually draw down the interest on a monthly basis and receive that as an income.

Paul Roelofse, Certified financial planner

When it comes to exchange-traded funds says Roelofse, things get a lot more technical, requiring additional research.

It's an investment in equities, shares, property - a whole bunch of options you can consider, but you're not buying the average of a specific index.

Paul Roelofse, Certified financial planner

When buying shares he cautions, be very aware of the risk factor.

For more practical investment tips, listen here:


14 July 2019 2:50 PM
Tags:
Financial planning
National Savings Month
investment options
sound investment decisions
managing your money