Tuesday, September 29, 2009
Blind Faith During Recession
Since we are all worried about recession, I thought I should post an article that might add value to your financial planning strategy. Most of us have put our faith in banks regardless of what has been happening around the world, and it’s interesting to know that, regardless of how much you trust your bank; the bank will never give you 100% guarantee that your money will be safe. As a matter of fact, banks don’t trust us anymore; hence they’re no longer offering 100% mortgage bonds. Therefore, don’t be short sighted, your money is not 100% safe in the bank. My recommendations: Invest some of your money into RSA Retail Savings Bonds (www.rsaretailbonds.gov.za) and your investment will generate an interest of about 9,25% if you leave your capital for 2 years. Should you decide to leave your capital investment for 3 years, you’ll gain an additional 0.25% per year and about 0.50% if left for 5 years. Please check which option will suite you best – Fixed Rate of Return or Inflation Adjusted Rate of Return, the information is freely available on the website. A minimum investment is R1, 000 for small investors, and up to a maximum R1 million for larger investors. The exciting thing is that you can invest at Pick ‘n Pay, the Post Office, by Telephone or if you are an internet user, you can do it Online. This is (under current economic conditions) your safest bet!