Question:
I have just paid off all of my debt. What do I do to collect the highest interest on my extra income per month? I want the investment to be safe and invested in a place where I cannot draw it whenever I want.

Answer:
I am assuming that you want to save this money for retirement. There are a number of things you need to have in place to be financially secure.

Firstly you need to own a property because paying rent when you are retired and on a fixed income is not a good idea. Secondly if you are a salaried person you should have some kind of pension plan in place. This gives you the opportunity to take advantage of the tax deferment that the government offers on retirement savings. If you have both of these in place then you may want to look at investing in unit trusts or SATRIX.

Saving in an interest bearing account is only an option if you plan to use the money in the short term as it will not grow enough to beat the effects of inflation.

If you are planning to use the money in the next three years, but don’t want to be tempted to dip into it then a fixed deposit or 32-day call account may be an option for you. Take the time to go and see a financial advisor who can help you plan your overall investment strategy and help you pick the right products for your needs.