This festive season, instead of buying lots of gifts that sometimes don’t last until the end of January, why don’t you consider investing in a gift that builds wealth. Investing on the JSE or in Krugerrands has become simple with access through online investing.
“It is all too easy to be swept away in the festive season buying expensive gifts for family members, but there are other options that could benefit your children or loved ones far into the future,” says Carin Meyer, CEO of Share Investing at FNB.
For small children it is an idea to invest small amounts regularly which will slowly build up over time.
“Small children often get many presents from those around them. Instead of so many presents, ask friends, family and grandparents to consider giving something small and rather contribute a cash amount which you can invest for them,” suggests Meyer.
It makes sense to invest in something like an exchange traded fund for your child where a few times a year you can invest small amounts given by yourself, grandparents or friends of the family.
“It is a way to slowly build wealth over a long period of time, which can be used for anything from education later on in life to being a good base for your child to start out with,” says Meyer.
Use a product such as FNB’s Share Saver, which takes the hassle out of choosing shares, as it invests in the top 100 JSE listed companies and you are able to invest small amounts regularly at very low fees, in fact the cheapest in the market.
For teenagers, it is a good idea to involve them in the process of investing advises Meyer. Investing in shares is a great way to teach teenagers to start being interested in wealth creation.
“Let your teenager know your plans and encourage them to be involved in choosing the shares to invest in. Encourage them to research and read up on the company it is a good way to introduce your teenager to become aware of the investment opportunities early. Investing in shares requires a bigger lump sum to start with, so perhaps get friends and family to contribute cash towards this goal,” says Meyer.
Krugerrands are another very good investment gift when it comes to the festive season. FNB has traded more than 1 800kg of Krugerrands since launch in August 2011.
“Anecdotally we know that there are clients that buy Krugerrands every birthday or festive season for loved ones,” says Meyer.
There are a few very good reasons why to buy Krugerrands as gifts. This 22-carat coin comes in four different sizes, you are able to buy one tenth of an ounce all the way to the full Krugerrand, and so you aren’t limited. FNB provides safe keeping services for you at Rand Refinery Ltd in which case they guarantee to buy it back or you have the option to have it delivered to you.
Finally, notes Meyer, a Krugerrand is the most widely known and actively traded bullion in the world as well as the easiest way for investors to own gold*, so you will be giving a very solid present that definitely won’t break or be discarded to the back of the cupboard in the upcoming months.
*http://www.randrefinery.com/products_krugerrands.htm
*A custody fee of 0.86% per annum is charged to keep your Krugerrand safely
*Visit www.eBucks.com for a list of online and in-store retail partners.
