Stock Markets Exposed
Which option is better, putting most money (Salary, every month) in Stock Market or Corporates SACCOs?
A colleage of mine, about 46 years old now( I am 26 and one year old in the workplace) was given a whooping Kenya shillings 750,000 (1 US $ = Kshs. 72)as dividend by the Company SACCO(Savings and Credit Cooporative) for having saved with them. This is dividend for only one year! I felt jealous! Now my question is, Should I invest more into these saccos or put money in stock market because after a long time, like 10 - 20 years, rates also increases exponentially?
Public Comments
- If you had $1 in an account and it doubled every year in 20 years you would have $1,000,000. If that account was taxed on an as earned basis at a 28% tax bracket the account would only have $52,000 at the end of 20 years. So tax deferred is always better, and your Sacco is not your investments in Roth IRAs are.
