What is the best investment right now in South Africa?
With Sanlam Smart Invest you can invest in a unit trust from R500 per month and join over 200 000 South Africans who invest with Sanlam. We'll take you through some easy steps to find the right investment for your financial goals.
- Exchange Traded Funds (ETFs): ...
- Tax-Free Savings Accounts (TFSA): ...
- Fixed Deposits: ...
- Real Estate: ...
- Retirement Annuities: ...
- Government Bonds: ...
- Unit Trusts:
With Sanlam Smart Invest you can invest in a unit trust from R500 per month and join over 200 000 South Africans who invest with Sanlam. We'll take you through some easy steps to find the right investment for your financial goals.
- Discovery Bank. Get up to 9.5% monthly interest when you deposit a large sum into a fixed-deposit savings account at Discovery Bank. ...
- Capitec Bank. ...
- FNB. ...
- Investec Private Bank. ...
- Nedbank.
Real estate has historically been a reliable source of monthly income. Investing in rental properties can provide you with rental income, and you may also benefit from potential property value appreciation over time. REITs are companies that own, operate, or finance income-generating real estate across various sectors.
A sure way to get to R1 000 000 is to save your way there! Saving is when you put money in a savings account, usually at a bank, that earns interest. Put away something each month, don't withdraw any money that you have saved or interest you earn, and you can get to your first million.
- Stocks - Best for portfolio control. ...
- Robo-advisors - Best for hands-off investment. ...
- Index funds - Best conservative approaches. ...
- Cryptocurrencies - Best high risk high reward approach. ...
- Government bonds – Low risk retirement planning.
- Start now and be consistent.
- Save to invest.
- Stay on top of your tax.
- Get rid of unnecessary fees.
- Get good advice.
- Choose the right tools.
- Next step. Are you interested in growing your money? Speak to one of our financial planners today and set your dreams in motion.
Those who are able to save a significant amount beyond their retirement account contributions may be able to generate $200 monthly in interest. “If you have $50,000 in a high-yield savings account offering 5% APY, that's $200 a month right there,” Henry says.
- 40% FTSE/JSE All Share Index.
- 20% MSCI World NR USD.
- 30% BEASSA All Bond Index.
- 10% STeFI Call Deposit.
How much interest can I earn on 1 million rand?
As an example, with an interest-focused investment of R1 million, generating a return of 6.7% over 12 months will mean a return of R67 000 for the year.
At 4.25%, your $100,000 would earn $4,250 per year. At 4.50%, your $100,000 would earn $4,500 per year. At 4.75%, your $100,000 would earn $4,750 per year. At 5.00%, your $100,000 would earn $5,000 per year.
This stayed constant from the previous number of 11.750 % pa for Nov 2023. South Africa Prime Lending Rate data is updated monthly, averaging 10.500 % pa from Jan 2000 to Dec 2023, with 288 observations. The data reached an all-time high of 17.000 % pa in May 2003 and a record low of 7.000 % pa in Oct 2021.
However, according to data from Numbeo, a salary of R30,000 or more per month is considered to be good. This income would allow you to live comfortably in a major city like Johannesburg or Cape Town and have some money left to save or invest.
Time To Calculate Your Retirement Target
Did you know that the current average South African salary comes to around R22 500 per month? So, if you want to continue living off this amount for the rest of your life, you will need to have R4. 5 million saved up by the time you retire at the age of 65.
- Online Hustler. New. ...
- LinkedIn Manager (Remote - South Africa Based) New. ...
- International Nuclear Medicine Technologists. Hiring multiple candidates. ...
- Auto Eletrician. New. ...
- Cyber Security Analyst. Clever Content Jhb. ...
- Strengthen your profile. ...
- Aluminum Fabricator/Installer. ...
- Transport Intern.
- Sell your preloved items online. ...
- Take online surveys to earn extra income. ...
- Make lunches for people in your office block. ...
- Watch online videos. ...
- Become a translator. ...
- Become a voice-over artist. ...
- Bake up a storm. ...
- Sewing and alterations.
- Stay away from debt.
- Invest early and consistently.
- Make savings a priority.
- Increase your income to reach your goal faster.
- Cut unnecessary expenses.
- Keep your millionaire goal front and center.
- Work with an investing professional.
Fixed Deposits
Like money market funds, fixed deposits pay interest that usually beats inflation. Money market funds are your best choice if you want an almost completely risk-free investment that doesn't 'lock you in' – money market funds allow you to withdraw your savings at any time.
South Africa has a well-developed and diverse economy, boasting sectors such as mining, manufacturing, agriculture, and financial services. The country's economy is a cornerstone of the African continent, and it offers numerous investment opportunities.
What to invest in South Africa 2023?
South African government bonds, RSA Retail Savings Bonds and Money market funds offer the safest investment options in volatile markets. South African government bonds, RSA Retail Savings Bonds and Money market funds offer the safest investment options in volatile markets.
- Fixed deposits.
- Unit trusts (collective investment schemes)
- Certain endowment policies issued by long-term insurers.
- Linked investment products.
- Exchange traded funds (ETFs) that are classified as collective investment schemes.
Accessible/long-term/low-risk
For accessible, longer-term investments (five years or more), you would be well advised to go the unit trust route. These invariably come with higher investment risk than bank deposits, but if you are investing for the long term, the risk of losing money declines over time.
mining (world's largest producer of platinum group metals, gold, chromium), automobile manufacturing, metalworking, technology, machinery, textiles, iron and steel, IT, chemicals, fertilizer, foodstuffs, manufacturing, commercial ship repair.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
