1 hr 3 min
#116: Investing for your parents The Fat Wallet Show from Just One Lap
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- Education
A friend recently discovered a financially dependent parent had a huge amount of credit card debt. This revelation turned the dinner table conversation to the financial health of our parents. Of the seven of us, only two weren’t worried about their parents’ financial future. Naturally we proceeded to drink heavily.
I find it much harder to speak to family members about money than to anyone else. Our parents managed to raise functional, financially secure members of society. After that significant achievement it can’t be easy to admit that you need help from the sprouts you raised.
I hope this week’s episode will provide a glimmer of hope if you happen to find yourself in a similar situation with your parents. Nothing can be done about the late hour, we admit, but if you can find a way to speak to your parent about their situation (I haven’t yet worked this out), you might just be able to find a creative solution.
Ruben asked:
My father is turning 60 next year with no pension/investments or even a house. I estimate he could work for another 5-10 years at his own business. How can I invest to help him with income for retirement?
Twitter Daniele asked:
I pay my mom rent. Should I put it in a TFSA for her instead? She has a company pension fund so this would supplement it. I am having a hard time convincing her that it is still a good idea to invest in a TFSA even though she is nearing retirement.
She works for a bank’s investment arm. Would they allow her to open up an account with another provider like EasyEquitites? The TFSA and UT fund options (no ETFs) for her bank are pathetic (fees).
Get Down Adam
I am 32, I graduated as a doctor two years ago. Financial people with various levels of qualification and pizazz came to sell us their products. The bottom line was that you had to have started investing at 24 (which was the age of my peers). I was already 6 years behind so I went into panic mode.
Two years into the real working world again, I’ve paid off my student loan of R110,000. I only have about R60,000 left on my car loan. I have sadly given up on buying coffees, and I’m back to that instant coffee shit. I limit my spending as far as possible. 22seven is my most used app.
Because I didn’t understand what was happening when I started my investment journey, I signed up for a Liberty RA investing in Liberty Medium Equity (C) as well as a Stanlib Tax Free Global Equities Feeder (A).
I recently bought the Coronation Market Plus Fund simply because they had a promotional sign up bonus of 10% which I thought couldn’t hurt.
I own a flat with my sister (which our parents bought for us). We rent it out and receive about R6,000 income a month from that. Recently we have been putting R500 a month into Easy Equities and playing around with ETFs.
I have tiny amounts in:
Cloud Atlas AMI RealEstate exSA Ashburton Global 1200 Satrix Top40 Stanlib S&P500 Stanlib Global Government Bonds I also have f**k you money shares/FSR in:
Netcare (what a disaster) Montauk Energy Capitec We also have some cash stashed in an ABSA fixed deposit to cover maintenance etc.
My own emergency funds are modest for now, but I’m building in a 32 day fixed deposit in FNB.
Am I playing with too many variables? Are there too many ETFs?
How do I know if I have saved enough?
What’s the difference between building a portfolio and just sommer buying shit and hoping you’re right?
Please fix me, or at the very least tell me I can drink decent coffee again.
Frank shared a great graph he found of a married couple’s shared finances. I’ll include a link in the show notes. There’s a line item in the graph called “blackmagicfuckery” which is how they account for money that fell through the cracks.
Jorge wants to know if he can withdraw profits from his tax-free account without affecting his lifetime limit.
Jon-Luke is a freelancer in his 40s. He has no debt except for a house h
A friend recently discovered a financially dependent parent had a huge amount of credit card debt. This revelation turned the dinner table conversation to the financial health of our parents. Of the seven of us, only two weren’t worried about their parents’ financial future. Naturally we proceeded to drink heavily.
I find it much harder to speak to family members about money than to anyone else. Our parents managed to raise functional, financially secure members of society. After that significant achievement it can’t be easy to admit that you need help from the sprouts you raised.
I hope this week’s episode will provide a glimmer of hope if you happen to find yourself in a similar situation with your parents. Nothing can be done about the late hour, we admit, but if you can find a way to speak to your parent about their situation (I haven’t yet worked this out), you might just be able to find a creative solution.
Ruben asked:
My father is turning 60 next year with no pension/investments or even a house. I estimate he could work for another 5-10 years at his own business. How can I invest to help him with income for retirement?
Twitter Daniele asked:
I pay my mom rent. Should I put it in a TFSA for her instead? She has a company pension fund so this would supplement it. I am having a hard time convincing her that it is still a good idea to invest in a TFSA even though she is nearing retirement.
She works for a bank’s investment arm. Would they allow her to open up an account with another provider like EasyEquitites? The TFSA and UT fund options (no ETFs) for her bank are pathetic (fees).
Get Down Adam
I am 32, I graduated as a doctor two years ago. Financial people with various levels of qualification and pizazz came to sell us their products. The bottom line was that you had to have started investing at 24 (which was the age of my peers). I was already 6 years behind so I went into panic mode.
Two years into the real working world again, I’ve paid off my student loan of R110,000. I only have about R60,000 left on my car loan. I have sadly given up on buying coffees, and I’m back to that instant coffee shit. I limit my spending as far as possible. 22seven is my most used app.
Because I didn’t understand what was happening when I started my investment journey, I signed up for a Liberty RA investing in Liberty Medium Equity (C) as well as a Stanlib Tax Free Global Equities Feeder (A).
I recently bought the Coronation Market Plus Fund simply because they had a promotional sign up bonus of 10% which I thought couldn’t hurt.
I own a flat with my sister (which our parents bought for us). We rent it out and receive about R6,000 income a month from that. Recently we have been putting R500 a month into Easy Equities and playing around with ETFs.
I have tiny amounts in:
Cloud Atlas AMI RealEstate exSA Ashburton Global 1200 Satrix Top40 Stanlib S&P500 Stanlib Global Government Bonds I also have f**k you money shares/FSR in:
Netcare (what a disaster) Montauk Energy Capitec We also have some cash stashed in an ABSA fixed deposit to cover maintenance etc.
My own emergency funds are modest for now, but I’m building in a 32 day fixed deposit in FNB.
Am I playing with too many variables? Are there too many ETFs?
How do I know if I have saved enough?
What’s the difference between building a portfolio and just sommer buying shit and hoping you’re right?
Please fix me, or at the very least tell me I can drink decent coffee again.
Frank shared a great graph he found of a married couple’s shared finances. I’ll include a link in the show notes. There’s a line item in the graph called “blackmagicfuckery” which is how they account for money that fell through the cracks.
Jorge wants to know if he can withdraw profits from his tax-free account without affecting his lifetime limit.
Jon-Luke is a freelancer in his 40s. He has no debt except for a house h
1 hr 3 min