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During a time when Wall Street is struggling to contain the raging bull, and banks seem to be closing down like spaza shops, how can you possibly decide on a safe and secure place to invest your money?

As tempting as it may be to invest in your brother-in-law’s ‘foolproof’ scheme that resembles a trapezoid (it’s not a pyramid!), you may want to speak to someone outside of your family circle when it comes to your financial future.

So, while economies are bleeding like traditional offerings on Clifton Beach, who do you trust?

We may at times come across as the village idiots, but when it comes to money, we don’t fool ourselves. That’s why we put together a few ideas on safe local investments for you to peruse before you hand over a bag of cash to your dodgy brother-in-law’s ‘antique cellphone business’.

And while we tend to listen to our partners at Consequence Private Wealth, it’s always good to know what is available when you speak to ‘your guys’.

When we talk about high returns on a low-risk investment, we mean an investment that may generate a larger return than simply keeping your money in a typical savings account.

Government of South Africa Treasury Bills

South Africa’s Treasury Bills are among the safest investments available, they have fairly high returns for a conservative investor. Provincial and federal governments issue these to raise capital. The National Treasury issues Treasury Bills on behalf of the Minister of Finance as a representation of the Government of the Republic of South Africa.

Money Market Funds

Money Market Funds are a form of mutual fund that invests largely in assets with high liquidity and short-term maturity. A Promissory Note, a financial tool that allows investors to lend money to corporations or banks with a defined interest rate and monthly installments, is one such example. Money market accounts and funds are frequently thought to be less risky than stock and bond investments, they also tend to come with high returns.

RSA Retail Savings Bonds

An RSA Retail Savings Bond is an investment with the government of South Africa that earns fixed or inflation-linked interest for the term of the investment. The least amount that can be invested is R1 000.00, and the maximum amount that can be put is R5 million.

Fixed Annuities

In South Africa, fixed annuities are among the most secure long-term investments. Typically, these are granted by banks or insurance firms. They give consistent, typically monthly payments over a number of years. The majority of retirees use annuities to generate income throughout their golden years.

Dividend-Paying Stocks

Stocks that pay dividends are one of the most popular and secure investments among South African investors. These are shares of publicly traded firms on the Johannesburg Stock Exchange that regularly distribute a portion of their income to shareholders as a cash dividend. The majority of dividend stocks represent blue-chip, highly successful corporations in industries such as mining, finance, and real estate.

Real Estate Investment trusts (REITs)

REITs are essentially investment funds that own and manage income-generating properties such as offices, shopping centers, warehouses, and residential buildings. These properties generate rental income, which is then distributed to investors in the form of dividends. REITs are required to distribute at least 75% of their taxable income to investors, which means that they typically offer higher dividend yields than other types of stocks.

Unit Trusts

Unit trusts are a popular investment option in South Africa, allowing individuals to pool their money together and invest in a diversified portfolio of assets such as stocks, bonds, and property. Unit trusts are managed by professional fund managers who make investment decisions on behalf of the investors, aiming to achieve the best possible returns.

Exchange-Traded Funds (ETFs)

Exchange-traded funds (ETFs) are a popular investment option in South Africa, offering investors the opportunity to invest in a diversified portfolio of assets at a relatively low cost. ETFs are investment funds that trade on stock exchanges, allowing investors to buy and sell them like any other stock.

Corporate Bonds

Corporate bonds are a type of debt security issued by companies to raise capital. Investors who purchase corporate bonds lend money to the company, and in return, receive periodic interest payments and the return of their principal when the bond matures. Corporate bonds are considered a relatively low-risk investment compared to stocks, as they are backed by the company’s assets and cash flows.

It’s easy to focus on our immediate needs and worries when it comes to money, but with the cost of living skyrocketing in the last few decades, it’s no longer an option to just hang on tight and see what happens. Much like a good education, investing in your future will ensure that you don’t end up having to borrow money from your family to eke out a living during retirement.

Although the above investments are ‘expert-approved’, it’s always a good idea to speak to a company like Consequence Private Wealth when considering not only your own but your family’s future.

Investment is not a plumbing leak and whether you like it or not, a DIY approach is never a good idea. When the pipe needs fixing, you call a professional. If not, the drip drip drip of money will keep you up every night.

[source:rateweb]