[Question] R 4,000,000

[Martinco]

If you had R 4 mil to invest for a secure monthly income..............where would you go ?

Remember....secure, no risk at all.

What is the best rate that you can get ?

Please note: I say "you" not " I "

[Chrisjan B]

SA Government bonds - https://secure.rsaretailbonds.gov.za/

[tec0]

Truth is our banks are too weak to give you a proper growth there prime is stated to be 9% but the true realistic figure is more 3% to 5% growth as bank manager cost eats the rest. I would stay away from Absa because you lose 10% upon investing your money.

Right you deposit the money at ABSA bank and they take 10% (more than what you can earn on prime interest in 1 year. You WILL lose instantly!) So now you have Three million six hundred and thirty-six thousand three hundred and sixty-tree rand left. So you already lost three hundred and sixty-three thousand six hundred and thirty-seven rand.

Now your money will not recover at a prime of 9% thus you will recover at about 5%. So your earning will be one hundred eighty-one thousand eight hundred eighteen rand per 1 year. That is about fifteen thousand one hundred fifty-one rand per month. But there is a catch according to law you need to pay VAT on this monthly earning thus you end up with thirteen thousand two hundred ninety-one rand give or take.

So it is a safe low risk bet, a no risk bet doesn’t exit.

Then there is also a question of inflation and the cold knowledge that the bank’s earnings per loan is almost 100% if not more. Sad but true.

[Blurock]

You will never get a good return by investing in bank deposits. That is why so many pensioners are now dipping into their capital.There is not one good investment, so I'll rather go for a balanced portfolio which will include long term investments and maybe 20% short term (for liquidity). Some low risk investments (lower return) and some high risk (higher return).

The balance will depend on your own lifestyle and appetite for risk. If you want a good return, you have to make your money work for you. That is why I have invested all that I have into my business.

[tec0]

Well when it comes to high risk I would look into oil, chances are that it will hit an all time high within the next 2 years if not sooner. But oil is more than just petrol; it is production more to the point mining production. If the oil price hits a high then naturally mining prices goes up thus the price of gold, silver and the like will go up.

So using oil as a primary indicator I would look at silver especially. When the oil shoots up you will get a higher return on your silver. So when oil is inexpensive it is generally a good time to buy and when the oil hits the roof it is a good time to sell because your earnings is no longer connected to the demand rather the production and there is no synthetic economy when it comes to production.

But in all there is no safety net here if you lose you WILL lose if you win you may win marginally or you can have a massif return. My advice is always identify the users of the product you are planning to invest in. if there demand goes up along with an oil price high you may have a good return.

[Dave A]

SA Government bonds - https://secure.rsaretailbonds.gov.za/

Rather go for tradable bonds if you want to look at bonds, but now is not the time I think - the prospects of interest rates dropping in the short or medium term seems very remote.

I'd go a little in a money market account, just for liquidity - maybe 10%

Then shares across at least three sectors.
If you're looking for a financial share - I'd suggest First Rand at the moment.
Resources? Dunno. Except oil. Sasol maybe?
Commercial property? Worth looking at I think. An Investec property portfolio perhaps?
And then a flutter on transport - shipping perhaps. It's a sector that should do well on a global economic recovery when it comes.

Disclaimer: Pretty much off the top of my head - not much in depth research done other than sniffing the wind. Just a couple of areas that might be worth a closer look.