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Showing content with the highest reputation since 07/21/2019 in all areas

  1. 2 points
    Timing the market is near impossible. The Rand could go up or down, and the index could go up or down. There are two trains of thought:- the momentum methodology (employed by ETFs like NFEMOM, for example) is based on the premise that shares that are going up strongly will continue to go up. The momentum methodology says now is an excellent time to buy. On the other hand, the value methodology (employed by ETFs like NFEVAL for example) say you should buy when prices are cheap. This methodology says you should wait. I personally do Dollar-cost averaging by buying an equal amount monthly. This way, you get the best of both worlds. It might be something for you to consider (ie. buy R2k per month for three months). This way, whatever happens, you minimize downside risk. But otherwise, as for your question, with all short-term decisions in the market, you may as well roll a dice.
  2. 1 point
    Yes, 25% of my own TFIA account is PTXTEN. Of course, this only applies to local property, as foreign property ETFs (such as GLPROP) have almost no tax savings (other than capital gains). My GLPROP is outside my TFIA at the moment. As you have suggested, it's still prudent to be diversified elsewhere. Pretty much, for me, my local ETFs are in my TFIA and my foreign ones outside of it.
  3. 1 point
    Great thanks! I heard a podcast where Warren Ingram also suggested using your TFSA for property funds: so long as you’re diversified elsewhere.
  4. 1 point
    Thanks Saurus. I like the 2K a month suggestion I never even though of splitting it up like that, plus, I could then probably invest more than the 2K for the next three months. win, win.
  5. 1 point
    That is 100% correct. In decreasing order of tax benefit within a TFIA: Local property ETFs Main source of income: 1. Interest: Tax Free 2. Dividends: Tax Free 3. Capital Gains: Tax Free Tax savings: Very High Local high-dividend, lower-growth equities ETFs Main source of income: 1. Dividends (large): Tax Free 2. Capital Gains: Tax Free Tax savings: High Local high-growth equities ETFs Main source of income: 1. Capital Gains: Tax Free 2. Dividends (small): Tax Free Tax savings: High Foreign high-growth equities ETFs Main source of income: 1. Capital Gains: Tax Free 2. Dividends (small): Taxed Tax savings: Medium Foreign high-dividend, lower-growth equities ETFs Main source of income: 1. Dividends (large): Taxed 2. Capital Gains: Tax Free Tax savings: Medium to Low Foreign property ETFs Main source of income: 1. Interest: Taxed 2. Dividends: Taxed 3. Capital Gains: Tax Free Tax savings: Low
  6. 1 point
    Man how do you keep still in a space this volatile? 1 minute I'm happy, next minute I'm really sad, then angry, happy. For amateurs like me, this dcx10 is fine for now, get to work on my feelings,
  7. 1 point
    Don’t think there is any recommendation other than that you should continuously save and invest. A debit order is very convenient and hassle free so why would you not go this route?
  8. 1 point
    Cheers Saurus and Bandit, appreciate the objective insight. Will be buying my first 2x ETFs in a few day time. Quick question ... is it recommended setting up monthly debit order R500 pm via EE platform or EFT transfer ( which I will have to do manually) . Debit Order suits me (,Knut maybe it’s more expensive with transaction fees) again shot for the advice .
  9. 1 point
    For local ETFs, capital gains, distributions (dividends) and REIT income is tax free. For foreign ETFs, capital gains are tax free, but distributions (dividends) and REIT income is taxed by that country, so the only tax benefit to us within a TFIA is on capital gains. Thus, in order of tax benefits in a TFIA (from biggest to smallest): Local property ETFs have the biggest tax saving Local income ETFs (high dividends) Local equities Foreign equities Foreign income ETFs (high dividends) Foreign property ETFs have the lease tax benefit
  10. 1 point
    Haven’t seen a post under here for a while nor have I said anything for a while... Anyways- I’ve decided to give my ETFs some serious thought and this is what I’ve come up with (I’m open to all suggestions). I want my overall exposure to be 70% local and 30% offshore. Then, under both local and international holdings I was thinking about having 70% equities, 20% property and 10% dividends. Or not including the dividends because most of these would be under equities anyways and then having maybe a 80/20 split? For local: Satrix Top 40 and maybe the Coreshares Smart (equally weighted) - I know these are basically the same, but I don’t want over exposure to one share nor do I just want equally weighted, so I thought that mixing the two would give a bit of a better mix. Then for local property Coreshares PropTrax10 And if dividends perhaps Coreshares Aristocrats? International I’m a bit confused about because I’d still like a bit of emerging markets as well. So maybe: 1) Ashburton global 1200 2) Sygnia S&P 500 (I know Ashburton would have quite a few American companies in it already) For international property I’m thinking about Coreshares S&P Global And dividends would be Coreshares again or maybe an ETF from Satrix. Is this too complicated of a mix and should I rather just aim for 1 or 2 ETFs for local and international? I am trying to keep the portfolio moderately simple!
  11. 1 point
    Your provident fund has a lot of SA exposure already. So I personally would look at offshore exposure: 90% STXWDM - tracks the shares of the developed world (USA, Europe, Japan etc). Solid long term investment unless the world goes to shiaat. 10% STXNDQ - tracks the top 100 Nasdaq shares (Facebook, Google, Microsoft, Uber etc). Potentially very good growth (or terrible). Over 5+ years that should deliver decent returns (DISCLAIMER: I won both).
  12. 1 point
    Investing is very different to trading. Selling and buying long-term investments is not generally considered a good idea - the costs of buying and selling are high, taxes come into effect when selling, and timing the market is near impossible. If, like me, you also want to take advantage of the short-term movements in the market, better to open a separate trading account for that purpose and keep your long-term investments as buy-and-hold. As the age old long-term investment advice goes: "It's not about timing the market, it's about time in the market." My strategy to maximize gains from shorter-term movements (in my long-term investments) is to plan at the beginning of the year what I'm going to invest for the year. Then, each month, I buy what is cheap and then just hold forever. So, if the rand is strong, I buy my global ETFs, so that when the Rand weakens, I get further gains from the exchange rate. When the Rand is weak, I buy my local ETFs. Similarly, I buy my ETFs when they are at a low. But I never sell!!! For example, I bought all my 2019 PTXTENs already since it is at a 52 week low. NB: Note, however, that this strategy works for ETFs that are intended for long term investment, where the ETF is diversified. It does not work for single stocks, since a 52-week low in stocks may indicate weak financials or other reason. Buying the low in the long term is only really suitable for ETFs or unit trusts, not for single stocks!!!
  13. 1 point
    Hi e4et That's a pretty solid core portfolio. A few thoughts though... Your 55% global ETFs, I'd keep exactly in the percentages they're in - 40% world and 15% US feels well diversified. No criticism here. Your local ratios might do with a little tweaking in my opinion though. In a bull market, momentum shares thrive (like Satrix Top 40, SWIX Top 40 and CTOP50). In a bear market such as we had in 2018, value/quality shares do better (like Satrix Divi and STXQUA). This is why your Divi ETF is doing much better (or much less badly, to be precise) than your other ETFs (that's of course putting aside the World ETF which is up because of the weak Rand). However, when the JSE starts going up again, you may miss out on the rapid growth that momentum shares usually experience. In my opinion, now would be the ideal time to even out your local shares ratio and go half value (Satrix Divi (STXDIV)) and half momentum (like Coreshares top 50 (CTOP50)), since momentum ETFs are really cheap at the moment. My biggest concern is that SWIX T40 is 28% Naspers at the moment and that percentage is getting bigger and bigger. With the uncertainty in Tencent at the moment, the future of Naspers is unclear. Fortunately you only have 15% in SWIX T40 at the moment, but I wouldn't invest more in SWIX if I could avoid it. What I feel you should have instead of SWIX top 40 is a well rounded local core momentum ETF that doesn't have excessive Naspers exposure. Due to your already high exposure in Naspers, I'd go for the Coreshares top 50 ETF (CTOP50) as it is capped at 10% in any one company, limiting further exposure to Naspers. If it were me, I'd keep your current portfolio as it is and use the 3k to buy CTOP50. After that, I wouldn't buy more SWIX T40 (rather continue buying CTOP50) but maybe keep the SWIX anyway as it is a small enough percentage of your portfolio to warrant the risk and it may shine if Naspers recovers. Then in the long run, try and get your portfolio to something like: Local (45%): CTOP50: 20% STXDIV: 20% SWIX Top 40: 5% Global (55%): Sygnia MSCI US: 15% Sygnia MSCI World: 40% In summary, the only real long term changes I'd make is to eventually move away from the SWIX Top 40 and replace this with a capped local core ETF like CTOP50 (which is much better balanced and much safer), and then drop your Satrix Divi to only half of your local exposure.
  14. 1 point
    Hi Guys. I'm also looking for some guidance please. My TFSA currently looks like this: 30% Satrix Divi Plus (Down 1.68%) 15% Satrix SWIX Top40 (Down 8.14%) 15% Sygnia MSCI US (Down 14.26%) 40% Sygnia MSCI World (Up 3.92%) Would you suggest I leave them as is and continue investing as they are, or would it be better to add some other ETF's to replace any of these or as an additional investment ? I currently have 3K available for investment. Thanks in advance.
  15. 1 point
    Who wants to compare the interest rates of each of these accounts and make a list for us?
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