When deciding to invest on your own you must be prepared to do your homework.
Personal finance expert Paul Roelofse suggests some investments which you can consider investing directly into.
Money Market Account
For contingencies and emergencies it is important that you have ready access to cash. A money market account offers you access to your money at an interest rate which is normally better that fixed deposits.
Banks have certain conditions which you need to explore, such as, minimum balances to keep the account open and how often you make withdrawals.
Ideally, you should have this account accessible on your internet banking profile so that you can manage your savings more easily.
RSA Retail Bond
A bond is an investment in debt. Effectively you are lending money to government for a specified period.
The case of RSA Retail Bonds the periods are 2, 3 and 5 year options. The interest rates are generally higher than the current money market rates and there are options to link your rate to inflation.
This is an ideal investment for those needing interest to supplement their pension as the interest can be paid out monthly to investors who are 65 and older.
Exchange Traded Funds (ETF)
In the universe of investments choosing the right fund manager can be daunting. There are so many styles and objectives which funds are defined by.
An easier approach is to invest in a ETF which invests in the average of the market. There are many types such as SATRIX 40 which offers the top 40 shares listed on the stock exchange by their size of company. For as little as R300 per month you can participate in quality stock market shares.
Understand the investments you make as thoroughly as possible beforehand. That way you will enjoy the power of saving over time using the the magic of compounding.
Listen to the audio below for more information
Read more from Paul Roelofse at www.investforlife.co.za