That’s a wrap, folks! 2018 had a lot to teach us and none of it pleasant. In this episode Simon and I talk about some of the assumptions we have to challenge after this year. Mine borders on cynical: doing things by the book doesn’t always get you ahead. Nothing like buying a house to bring that idea home (if you’ll pardon the pun).

At least we had an excellent time putting together The Fat Wallet Show. We can’t thank you enough for your support.

Happy holidays!

Here’s a link to Herman’s algorithm findings.

Pierre also made a spreadsheet.

I listen to the Fat Wallet Show every week and noted that some people ask the question to go direct investment or retirement annuity.  (I know TFSA account is always first to max out)

Earlier this year I did a quick calc as I was wondering this also.  You can play around with the assumptions in the yellow cells as the answer will be different for everyone, but it should usually come to that direct investments are more favourable at the start and then later on you would want to switch to RA. Download the spreadsheet here.

First Adam has a private banker.

I'm with Absa and have had a private banker for a few years now.

With the private banker comes the private facility which is now R515 per month (2019 fees). I have a Private One facility - so my all-in-one account.

This credit facility - which is only available to legacy holders - has done me well, since I bought my previous house with it, and now have bought into a second one too (after paying off the first one).

The private banker has been useful for the "odds and ends" and has indulged many basic requests (which I could do myself, but hey - she's there).

Is it worth it - no, however the credit facility IS. The interest rate is very favourable so it's worth the R515 for the time being.

Also, there's Absa Rewards.

I still maintain it’s one of the best loyalty programs. You get cash back on all credit card purchases. The higher tiers have cash back on groceries from all major retailers where you can get back 6% - 20% on the upper Tiers. You need to jump through some hoops, but they are pretty reasonable (pay your salary into an Absa account, debit orders here, odd saving account there).

Siphathisile is investing for her retired mom.

I have about R300K that I want to invest short-term for my mother who is over 60.

Do you think putting it in Capitec at about 7.5% interest in a fixed deposit account is decent? I could keep getting the interest then fix it for another year etc.

I also came across FedBond, which is a participation bond offered by FedGroup at about 12% interest over 5 years with no fees. And what are participation bonds? I was drawn to this because I can get my interest monthly(I think) as i wait.

Conrad has many irons in the fire. He wants to know how to proceed.

After many years of listening to various people I did various things and I'm more frustrated than ever before.

He has a budget, investments in three good ETFs (RAFI 40, MSCI Emerging Markets, Ashburton Investment Global 1200), Steinhoff and Sacoil (respectively down 84% and 78% since he bought) and dread and disability insurance.

He doesn’t have an emergency fund or a TFSA.

Listen to the podcasts on structuring your pay cheque about these.

Do I sell all shares and investments clear debt and have an emergency fund?

Do I stop with all investments and use my contributions towards debt and Emergency.

I think Emergency must be top priority and the Tax Free.

Actually I would go the other way around. My emergency fund is in a constant state of flux. You don’t need to have it fully funded and sitting there.

Pat

In the spirit of the fat wallet show, what does it mean when you say "the conditions of sale"? All the things you agreed he would fix if anything went wrong with the property in a certain period?

Find the Inspect-a-Home article I mentioned here.

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