In today's episode, Warren Ingram answers your questions about preference shares, explaining how they work and why their popularity has waned among private investors. He discusses their volatility due to interest rate fluctuations and suggests RSA retail bonds as a more stable alternative. Warren also touches on stock exchange platforms like Altex, which has faced challenges, and A2X, which is geared more toward institutional investors.

Takeaways

• Preference shares are a form of investment where individuals lend money to a company in exchange for a fixed dividend payment.
• The price of preference shares is influenced by the interest rate environment, making them volatile.
• RSA retail bonds may be a better option for stability and certainty.
• Altex has struggled due to economic downturns and compliance issues.
• A2X is designed for institutional investors and not for private investors.

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Today Warren Ingram speaks about investing in silver, the risks involved, holding gold or silver for long periods of time and other investment opportunities, like the exchange-traded funds (ETFs) that track the value of gold or silver.


Takeaways

• Investing in silver is similar to investing in gold, as both are commodities that don't generate any income.
• People buy precious metals like gold and silver when they're worried about the future or inflation.
• Holding gold or silver for long periods of time can result in losses.
• Silver is cheaper than gold and has more industrial uses, but if safety is the goal, gold is the preferred option.
• Investing in exchange-traded funds (ETFs) that track the value of gold or silver is an alternative to buying physical metals.
• Wealthy individuals often hold a small percentage of their assets in commodities as insurance against unforeseen events.
• For most investors, it's better to focus on buying companies and equity funds that generate growth and dividends.

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Have a question for Warren? Don't forget to voice note your questions through our WhatsApp chat on (+27)79 807 8162 and you could be featured in one of our episodes. Follow us on Twitter, LinkedIn and subscribe to our YouTube channel for more Financial Freedom content: @HonestMoneyPod

In this episode, Warren Ingram answers your questions about fund manager fees and the impact on investor profits. Warren speaks to investing in retirement annuities provided by unit trust companies, admin and platform fees, as well as the importance of understanding investment costs to ensure you're not overpaying.

Takeaways

• When investing in retirement annuities, it's important to consider admin fees or platform fees charged by unit trust companies.
• Consolidating investments on one platform can help reduce fees.
• Insurance company platforms often have higher fees and lack transparency.
• Understanding investment costs is crucial to avoid overpaying.
• For monthly investments, market timing is less important, and investors should focus on choosing the right investments and giving them time to grow.
• For lump sum investments, it's better to do larger transactions to minimize transaction fees.
• Having a fixed investment program and not worrying about short-term market fluctuations is key to long-term growth.

Get more insight on how Prescient Investment Management can help you here.

Send us a text

Have a question for Warren? Don't forget to voice note your questions through our WhatsApp chat on (+27)79 807 8162 and you could be featured in one of our episodes. Follow us on Twitter, LinkedIn and subscribe to our YouTube channel for more Financial Freedom content: @HonestMoneyPod