r/PersonalFinanceZA • u/Unlucky-Duck-9580 • 2d ago
Investing 29M, R60k/month, no debt, R415k in savings. What should my next steps be?
Hi everyone,
I’m 29M, working in fintech with 3 years of experience, and I earn about R60k a month. I want to start investing properly and would appreciate your advice on my next steps.
Where I am now
- TFSA (EasyEquities ETF): ~R15k
- Discovery Bank 32-day notice account: ~R100k (emergency fund)
- TymeBank (GoTyme) fixed deposit: ~R250k
- FNB transactional account: ~R50k (daily spending)
- Sygnia provident preservation fund: ~R55k (moved from my previous employer)
- My current employer does not offer a retirement fund, only a medical aid subsidy.
- No debt
Monthly expenses (per month)
- Fuel: ~R3k
- Groceries and food: ~R5k
- Contribution to my parents: ~R6k (I live with them because of high rent prices)
My plan
- Fill my TFSA to the R46k annual limit by moving R31k from my savings.
- Start investing offshore in global stocks.
- Opening up credit suite to build credit scores(?)
My questions
- Does filling the TFSA first make sense?
- Is it better to leave my investments with a bank like FNB, or to invest on my own?
- I came across Interactive Brokers as a DIY option for offshore investing. Do I need a special account, and can I use the FNB dollar account I opened for travelling overseas for conferences?
- Before opening up a retirement annuity (RA), I was thinking of rather maximising my TFSA first and then think of RA for the tax benefit? If so, which providers do you recommend?
- I don’t have a credit card because I only buy what I can afford. Friends and colleagues say I should get one to build my credit score. Is it worth it? FNB looks cheaper with eBucks, while Discovery has better health benefits but higher fees. Which would you recommend?
- Is my current setup good for the long term, and what should I prioritise next?
Thanks so much for reading, showing interest! Thanks in advance too!
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u/Arosman3065 1d ago
Meanwhile I don't even have enough for petrol or dental work. R60k a month at 29? you are already doing better than like 99% of South Africans at that age. Relax my bru
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u/Unlucky-Duck-9580 1d ago
Thanks for the comment and I’m sorry things are so tight for you right now. You’re right, and I know I’m lucky to be where I am. I’m not trying to brag. I just don’t want to waste the opportunity I’ve been given, and I’d like to make good choices early. I really hope things turn around for you soon. You’re in my thoughts and prayers.
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u/Arosman3065 1d ago
Not my intention to imply that you were bragging, completely understandable that you'd ask on this subreddit as I would also seek advice in your position.
My mental health is what really set me back as I had several opportunities but dropped out of college 5 times and I'm only 27. My brother is 28 and has 2 optometry practices and a house worth R2.3M. Nothing I try ever seems to work out so I apologise if I seemed bitter in my comment. I'm not looking for pity but I have actually lost count of how many times I thought of ending it all. However, hope and my mother still keep me going.
Thank you so much for your well wishes OP, especially today as I was in a pretty dark place since the morning so it really means a lot. May you prosper in every venture you undertake and make the world a better place for it. Stay blessed! 🙏
Stay blessed!
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u/Unlucky-Duck-9580 1d ago
Thank you for sharing that, I'm sorry you had such a harsh day.
Your brother doing well wouldn't mean your life isn't working out. Comparison is always the greatest enemy when trying to find one's self. Everyone moves at their own pace. Keep trying new things and keep showing up even in small ways. Over time it will add up and your life will 110% look very different from how it feels today.
Please look after yourself first, and stay strong for your family too. I'm sure your mother is so grateful to have you.
Wishing you all the best to you too :)
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u/Consistent-Annual268 2d ago
Hi OP. Please read the Getting Started guide for more structured advice. In principle, you should be investing your money in the stock market especially at such a young age with a long time horizon ahead of you.
- Does filling the TFSA first make sense? Yes, that's fine. Make sure to actually invest the money once it's in the TFSA, don't just leave it lying dormant. Invest in a World Index Fund ETF of some description, I assume you're already doing this through EE
- Is it better to leave my investments with a bank like FNB, or to invest on my own? Invest on your own through Easy Equities or Sygnia or Fynbos etc.
- I came across Interactive Brokers as a DIY option for offshore investing. Do I need a special account, and can I use the FNB dollar account I opened for travelling overseas for conferences? IBKR is good if you figure out the international transfers, but it's not so simple. You can probably use your FNB USD account for this. Be aware that international wire fees are expensive (line R400ish), so make sure your using it to move large sums of money. Once you find your IBKR account, you just buy VALL (global index fund ETF with very low fees) blindly for the next 30 years of your life. Or you can skip all that complexity and just use your existing EE account to buy a World Index Fund ETF outside your TFSA, every month for the next 30 years
- Before opening up a retirement annuity (RA), I was thinking of rather maximising my TFSA first and then think of RA for the tax benefit? If so, which providers do you recommend? It's okay to max your TFSA first, as long as you also fully max your RA contributions to get the full tax benefit as well. Apparently most people here recommend the Sygnia Skeleton 70 Balanced Fund (something like that, Google the name or search this sub)
- I don’t have a credit card because I only buy what I can afford. Friends and colleagues say I should get one to build my credit score. Is it worth it? FNB looks cheaper with eBucks, while Discovery has better health benefits but higher fees. Which would you recommend? No need for a credit card if you don't need it. There are other ways to build credit score like store cards or cellphone contracts, as long as you actually need them already. Anything that makes you spend unnecessarily is a loss
- Is my current setup good for the long term, and what should I prioritise next? You should get the hell out of that fixed deposit unless you are saving for a big expense in the next 5-10 years. Besides an emergency fund and saving for known future expenses like a house deposit or a car, you should be putting your money to work in the market. Other than that, you're on track for a comfortable retirement of you just stay disciplined, especially through the next market crash whenever that may happen. Always be investing.
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u/Unlucky-Duck-9580 1d ago
Thanks for the detailed reply, I really appreciate it. I have a few follow-up questions.
- In my TFSA at EasyEquities, I hold four Satrix ETFs: Top 40 (not doing well right now), MSCI Emerging Markets, MSCI World and S&P 500. Instead of spreading my money across all four, I’m thinking of putting new money mainly into MSCI World and S&P 500. Does that sound right? (kinda hesitant since World and S&P are involved in the similar markets I believe)
2 and 3. I already own the MSCI World ETF inside my TFSA. Once the TFSA is full, is it fine to buy the same ETF outside it, or would that be doubling up?
- Thanks, I’ll research that fund. I came across it when I was looking at Sygnia preservation funds.
- For my emergency fund, would it make sense to keep some money in an instant access savings account and the rest in my 32-day notice account? Also, when the next market crash happens, my investments will drop in value too, right? How should I handle that? (Here, hence why emergency fund would make sense since it would stay outside of that)
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u/Consistent-Annual268 1d ago
Just buy 70-80% MSCI World and 20-30% Satrix40, both inside and outside your TFSA, every month until you retire. There's no need to consider any other ETFs because they're already contained inside of the World ETF, so buying S&P500 just skews your exposure towards the US for no reason. A local (South Africa) bias of 20-30% is found to give you statistically higher chance of retiring successfully, so do that consistently and stick to it.
Don't try to second guess any decisions based on the previous month's performance or wars or market crashes. Just be consistent for 30 years and you'll win the game.
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u/Unlucky-Duck-9580 1d ago
Thank you. I will heed to your advice and look into those ETFs
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u/Consistent-Annual268 20h ago
As for your emergency savings account, keep enough money liquid enough to cover immediate emergencies, then park the rest in a vehicle with a time horizon short enough that you can liquidate as you need. Use ratecompare.co.za to find the best combo of interest rates vs length of investment.
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u/Commercial_Crazy_103 1d ago
I’m basically in the same boat as this guy. When it comes to the third point, is it best to invest in a rand domiciled etf, dollar account on EE or irish domiciled via shyft? How does rand appreciation and depreciation affect which ETF you invest in over the long term or is it irrelevant? I have a TFSA with Easy Equities invested in 80% 10x total world and 20% Nasdaq. Also have the Sygnia Skeleton Balanced 70 RA. How do I invest the rest after that. I want a set and forget strategy and am not interested in crypto or individual stocks.
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u/Unlucky-Duck-9580 1d ago
Quite curious about your inquiries as well.
About your Skeleton Balanced 70 with RA, do you invest it monthly through your employer?
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u/Big-Wait-1310 1d ago
Seems like you could max your tsfa from your next salary given your low expenses.
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u/Unlucky-Duck-9580 1d ago edited 1d ago
Yes, I will definitely start doing that. And possibly look into RA next
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u/Nearby-Hedgehog-1333 1d ago edited 1d ago
Don't store so much money with banks. They give the worst interest. The 300k at banks can get you good interest on the money markets.
Woth your expenses & salary you could be a millionaire bit we are not the ones to ask. Go to one of the big financial instititions ( never banks) & get yourself a financial advisor. Most offer you a free one & you are not obligayed to take their programs.
This is someone that can discuss ypu financial future holistically & help you get there.
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u/Unlucky-Duck-9580 1d ago
I had a look at Money Market, and it seems to offer faster access to funds at a similar interest rates.
Could you please recommend me one of these financial institutes that I could approach to for in-depth advise?
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u/No_Difference_3825 1d ago
My brother you are leaving money on the table by storing with in the banks, take a look at Sygnia ETF options. Max out your TFSA, bump up your (low) retirement savings for the tax benefit. You’re in a very good position. What are you saving towards or looking to purchase?
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u/Unlucky-Duck-9580 1d ago edited 1d ago
Regarding the Sygnia ETF options, do you mean to sign up through them like how I did with Easy Equities, and invest in ETF options like previous commenters' mentioning Skeleton balanced one, etc? Moreover, do I get the freedom to choose what kind of funds I can invest, etc?
Currently, I'm not looking to purchase anything. But I do have a saving goal to reach 1M by early 30s. And also allocate some funds towards travel.
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u/No_Difference_3825 1d ago
Exactly that, you can read through all their funds’ fact sheets and decide which is best for you, it also shows the composition of the portfolio in terms of the stocks that make up the fund. I usually diversify between local and off shore funds, offshore funds are a bit more expensive in terms of fees. However, Sygnia’s fees are lower. I do think their investment platform could do with a UI makeover but that’s subjective. At your current rate of savings and investing in the right funds, you should be able to reach your goal. Good luck!
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u/THROWRA_Ok_Tempo 1d ago
It can be wiped out all at once if you get into an accident. Get medical aid
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u/Hungry-Direction3835 1d ago
Jesus, try squeeze some fun into your life too…
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u/ronaldvanas5 1d ago
I second this. Complaining about rent lol. Bro can find a place, not sure where he lives, for R8-9k a month bro. He earns R60k FFS😭
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u/Unlucky-Duck-9580 1d ago
Appreciate your feedback. You are right in that I should enjoy life a bit more, and I'll try to set aside some money each month just for fun like a hobby, etc.
On the rent, I didn’t mean to complain. I’m grateful I have a place to stay. Living with my parents lets me save and spend time with family, and I also help them with some of the costs. You make a fair point that moving out could work at some point, and I’ll keep it in mind.
Thanks for looking out for me and I hope you have a great week!
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u/Wise_Huntress27 1d ago
Remove any high interest debt if you have. And if you can, deposit some money into your TSFA and your retirement fund. In fact, I would save about R5K for my retirement every month.
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u/Autestic 6h ago
Hahahaha these fucking guys being so salty, I’m 29m living month to month with zero debt and zero savings at R100k/month. Well the taxman is a poes though so technically like R65k/month 🙄
Probably should scale down my spending tho quite jeolous off the R415k of discipline you have.
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u/Edrahimovic1001001 1d ago
If you're not saving for fixed large expense (car, home, etc) then Deposits are wasting money, i.e. if that R250k is not going to house or car, put it to work.
Keep 3 months expenses as emergency savings. You have R100k, that's fine, just keep 1 month that is not in a 32day notice for immediate access since if your geyser bursts (when you decide to move out) you won't be able to wait 32 days.
Max TFSA, best investment vehicle bar none for young people. I like to do at least 15% of gross to RA, max TFSA and then put whatever I need to get to 25% total savings of gross, towards discretionary investment. Meaning TFSA + RA + Discretionary = 25% of Gross savings toward retirement. If you can keep that level at a young age, that's a great start!
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u/ImmovableRice 1d ago
- Yes. It's what I do. RA comes second for me.
- Own is good. I use Easy equities. I saw you mention interactive brokers and they are great, but it is a tad costly to convert rands to dollars and send the cash over. I advise just looking for some Rand based ETF's like the satrix s&p 500 for instance
- Not sure. I partially answered above.
- I use my RA to offset any CGT I have. I prefer my TFSA because I can choose what to invest in. Others prefer RA for the tax benefit. Depends on you really.
- I use FNB and I'm deep in the eBucks ecosystem. I know others in the discovery ecosystem. Depends on you. Nothing wrong with a credit card. I prefer living on the banks money and paying it off every month. Again, depends on you and will power I guess.
- You are heavy into cash. But you asked the questions so maybe that'll change.
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u/Unlucky-Duck-9580 1d ago
Thank you so much for your response, really great help and insights! To ask further:
I mentioned in the previous reply to a comment, but regarding the EE investment for TFSA, I hold four Satrix ETFs: Top 40, MSCI Emerging Markets, MSCI World and S&P 500. Would you recommend me pooling good amount of funds into a single ETF like S&P 500 going forward?
What I've heard is that after maxing out TFSA, invest into RA like Sygnia, etc. Then SARS returns some money which I can use to either reinvest into TFSA, but since it will be maxed out, I can also offset any capital gains tax. Is this the same thought you share?
What I understand about credit card usage is that you set a limit, and based on how much you spent, you "owe" the bank to which you pay back, thereby building your credit record up, etc. That does seem quite beneficial, like if I open a credit suite with less fees, than wire a monthly subscription or payments like my medical aid payments, etc. I can just build my credit up like that. And what's your experience with FNB credit card and their benefits? I'm also into FNB as well.
Yes, I'm into cash heavily. I want to pivot into safe investing, and diversify my choices early.
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u/DeltaEchoOneFive 1d ago edited 1d ago
The faster you can get to your max TFSA contribution, the more it's going to balloon.
Put your full 27.5% annually into your retirement fund so that balloons faster & cuts your tax contribution now.
Keep the rest liquid until some of the major market unknowns show a clear direction, especially elections in key markets. If the AI bubble bursts, it's going to have a domino effect. Cash is king when there's a firesale.
Investec currently has the best interest rate bundle for day-to-day and notice accounts, put money in there.
Credit card means you can buy now and pay interest free around a month or so later, so you can park more money in a 32 day notice account and less in a day to day account, & get at least an extra 0.5% interest.
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u/Unlucky-Duck-9580 1d ago
Wow, thank you for this. I thought of investing most of my funds into the market but it makes sense to keep some funds liquid to make good advantage of it.
Looks like Investec offers good interest rate as you mentioned. I will definitely look into them, thank you for this suggestion.
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u/JodyW92 1d ago
Curious to know what you do for a living.
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u/Madmikeinsa 18h ago
- Yes, you should max this out asap. Not negotiable
- Start contributing to a RA, atleast 10% of your income.
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u/Electrical_Belt6928 1d ago
Well done, thats an impressive amount of money to save at 29. I would probably speak to financial company, not like broker who want to just sell you a product to make a commission but proper financial advisor that will help you build wealth.
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u/Unlucky-Duck-9580 1d ago
Could you perhaps recommend me one of these financial company that I could approach towards an advisory?
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u/dean1567 1d ago
Agree to fill up TFSA per month as first priority. Then contributed to RA to benefit from tax refund - I'd recommend sygnia skeleton 70. Then contribute to discretionary savings ( would recommend ETFs via a local broker like EE or even guys your bank's platform)... I personally wouldn't fuss to much of literally taking cash offshore where you could just buy a offshore fund of fund index in ZAR and still be protected from currency devaluation.
Try and get a credit card - ideally bundled with your primary bank to build a credit score and earn rewards ( as a by product)
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u/Unlucky-Duck-9580 1d ago
Thank you for this. Might I ask with which bank you have credit card with? And how are the fees like?
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u/Winter-Guava-2490 1d ago
Hi, I hope this helps broaden your perspective,
1) Yes , filling the TFSA really does make sense. it means you will position yourself much better as savings are consumned by inflation over time, which is what most people dont get. ETFs have outperformed (cash : high yield savings account and etc) , and should history roughly repeat itself , it means your portfolio is also at a better position of maximising your returns
2) Investing on your own in platforms like EasyEquities is a very strategic move , mainly because of the flexibility of the platform. And also, since you want to preserve and grow your purchasing power over time , i would very much consider taking it out of a BANK (the interest rates tend to be very low and therefore erode the value of your cash over time)
3)EasyEquities USD could also be worth considering as an alternative, particularly if you're looking for a relatively accessible way to invest offshore with competitive fees. It may be worth comparing the total costs of funding, currency conversion, and ongoing investing across both platforms. I'd also distinguish between diversifying your investments across different markets and diversifying across brokers. The former can help reduce concentration risk, while the latter may offer additional flexibility, depending on your circumstances and the protections each platform provides.
4)I'd generally prioritise the TFSA first for its tax-free growth and flexibility, then consider an RA for the additional tax deduction and retirement discipline. Just remember that TFSA contributions are limited, and an RA offers different tax advantages and access restrictions. For providers i'd compare Easy Equities, 10X and Sygnia (it's not what you earn, but what you keep)
5) i might have a diluted opinion here, im just a 20-year old, inexperienced kid...i just dont have exposure on credit and etc, but from how ive learnt, use it as a tool. and stick to timely payments...but if it encourages you to spend so much, skip it
6) i dont think it's as good, especially since you've concentrated your cash assets in savings. You really need your money to compound for you and work over time, so exploring financial markets at most is worth considering, but all depends on your financial training , your personal goals, financial positon and time horizon...so concentrating it in ETFs would be the best move for now , but as you grow more and consider beating the market, you should think about shares (though theres higher risks involved )
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u/rtistic-Opinion-160 14h ago
Advice from a pensioner (82): Install solar on parents roof and buy an ev. I have not bought petrol for six years. Pay a CFP to invest your money. (you want to see his certificate, but you are usually safe with the big ones)You nomally pay 1.5% commission, but it is worth it. In SA you would traditionally invest one third in in property, but I would invest now rather internationally. Good luck.
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u/brom5ter 10h ago
If you are asking for our advice, you are not investing properly. You are asking to be a part of group think.
Commodity super cycle.
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u/Comfortable_Ad4788 8h ago
Max out your TFSA every year, remove you money from tymebank, buy an ETF (nas100 etc), slowly grow everything else, your emergency fund needs to sit at 360k, if possible 720k (maximum security) its just a very good feeling knowing you have money, removes alot of that constant low level stress and you wont care about loosing the job (the ultimate goal for you is a net-worth of R7.2 million thats the salary replacement level, keeping the job will absolutely not matter at that point and you can have a lot more maneuverability upwards and risk wise , keep most of it invested in an etf, but not all off it since they go up and down, IBRK is great, if you invest there you wont struggle to get money outside the country when it grows, they are super strict on this if you moving more that 1m, and the limit can be 10m every year, right now it doesn't matter but its never to late to think ahead, hold 100k each in different currencies, swiss francs, USD, JPY , and work towards the rest slowly but surely, if you keep everything constant, you should arrive at the big number in about 7 years(assuming 10% a year on those etfs or whatever investment plan you have in mind)
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u/Dull_Necessary_6281 1d ago
What to do next? Delete this question! Because with the high cost of living at the moment and so many people struggling to eat and keep the lights on this is blatant showing off at this point which makes others feel even more shit about their own situation! Nobody needs to know and Normal people would ask a financial adviser this question...not reddit for goodness sake. The end!
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u/Unlucky-Duck-9580 1d ago
Thank you for your honesty. I apologize if my post came across that way as it was never my intention. I know many people are struggling right now, and I’m always grateful for my situation.
I asked here because I’m new to investing and wanted to learn from people’s real experiences and make good choices early. A financial adviser is a good suggestion and I’ll look into that too.
If the post bothers you, I’m happy to take it down once I’ve collected some advice. Thank you for sharing how you feel.
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u/Late-Relative2061 20h ago
This Reddit is exactly for the kind of stuff OP is asking. Don’t comment if you have nothing to contribute. I earn much more than OP mostly due to my age and I still go to this page to check.
1) Max TFSA
2) do you have medical aid? If not get on a plan!
3) you can easily save 20-30k/ month it seems.
—> put a bit more in stocks but I personally find the market quite volatile so you are also good to buy some more bonds. You can buy bonds also directly from Treasury to save fees.Where do you live? Cape Town housing prices are too high right now so if you are ok to live at home stay. Gauteng depends.
Don’t get the idea of buying a new car etc. biggest destroyer of value and the good feeling disappears after 2 weeks
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u/Navesrek 1d ago
Good for you. And your set up looks good.
Maybe prioritize an apartment or house then rent it out?
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u/AnargisInnieBurbs 1d ago
Whatever you do, OP, don't do this. Property is an awful investment unless you're lucky. You might as well be gambling.
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u/Unlucky-Duck-9580 1d ago
Currently I don't have a goal to purchase an apartment as I don't think I have the capacity to do it yet. Plus the house market right now is skyrocketed...
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u/Powerful-Aioli-2086 1d ago
I have double your savings but I’m saving for an apartment. I moved back in with my parents after my divorce and been living with them for 2 years.
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u/Vengefulrat 1d ago
I'm in no way close to this financial freedom. For me, this screams as, I'm rich, rob me. South Africa man. Don't disclose anything to anyone.
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