A Fin24 user writes:
I am a young working man. I have a bit of study debt I am currently paying off.
I earn a reasonable salary, and would like to start building a diversified portfolio with medium- to long-term pay-offs.
How do I start, and what would be good investments/stocks to acquire?
Peter Warren, investment adviser for Vunani Private Clients, responds:
The user needs to allocate R1 000 into the Satrix Rafi exchange-traded fund each month as a building block towards a growth portfolio (see attached for an example), if his after tax salary permits this.
This can be done on a discretionary basis before tax. Alternatively, he should look at a monthly retirement annuity (RA) contribution with the tax advantages associated with a Regulation 28 policy.
Once the investment achieves suitable size (R250 000) he can opt for an aggressive growth personal portfolio structure. This is Regulation 28 compliant and offers all the same tax advantages in the RA wrapper (Retirement Annuity policy).
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