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Showing content with the highest reputation on 10/14/2019 in all areas

  1. 2 points
    It's hard to know which local ETFs are best to invest in. At least with the offshore ones, ASHGEQ or STXWDM are no-brainers and either of them serves as excellent all-rounders. But locally, we don't get "All-rounders" of the same quality. Your Top40 and Top50 ETFs are market capped and you end up having 70% of your money in four or five shares, which is certainly not great. Then, there are the myriad of smart beta ETFs, each claiming to have a better methodology than the rest, but all untested. So for now, with my local ETFs, I have one third of my local portion of my TFIA in the new multi-factor SMART, one third in the momentum methodology NFEMOM and a third in quality shares with great fundamentals (STXQUA). But if you had to choose just one (or two) local ETFs, what would it be and why?
  2. 1 point
    Yes, it is definitely worth getting an RA! An RA works as follows: - You pay a monthly investment premium not exceeding 15% of your income (or you lose some tax benefits). -The premium is invested in actively managed funds (similar to units trusts) on your behalf by the finance house. - When you do your tax return each year, SARS refunds all the tax paid on the amount you invested during the tax year for your RA. (In other words, since you will not be relying on a state pension later, SARS will waive the tax now of any money earned that you invest in an RA as an incentive). - You cannot withdraw the money until retirement age. (Well, theoretically you can draw the money before retirement but there are extremely heavy penalties plus you have to pay back all the tax you ever got refunded, leaving you with very little). - The money is untouchable by anyone, even if you go insolvent - it will be there when you retire. On retirement, you have two choices (or you can split your money into these two options according to the percentage you choose): 1) You can buy a life annuity from the insurance company with your money (or part of your money). This means you pay a once-off premium (a percentage of your RA savings) for a guaranteed salary (plus inflation-related annual increases) for the rest of your life. You will receive a guaranteed salary until the day you die, irrespective of the age that you die. After you die, you don't get any of your capital back from the money spent on this option. 2) You can invest in a living annuity with your money (or part of your money). This means that the capital is invested and you take a certain earnings from the investment each month. Your salary is not guaranteed, but varies according to the market. This option pays a higher monthly retirement salary, but at some age, if you live longer than estimated, the money may run out (since you draw a little of the capital each month). If you die earlier than expected, the remaining capital forms part of your estate. Most people do a mix of the two - for example, use half their RA to make sure they are supported until death, and the other half to live the good life until, say 80 years old.
  3. 1 point
    I was happily surprised by SMART's distribution. It's the first time SMART has distributed (being a new ETF) and it was way better than I expected at 44c per share.
  4. 1 point
    Happy dividend day! It's not a lot, but there's something magical about money just appearing in your account
  5. 1 point
    I don't think I'd sell my CTOP50 or STXDIV if I were you. Property is a different asset class and its behaviour is (theoretically) uncorrelated to equities, and ideally you should have both equities and property. If I were you, I'd keep what you have and buy PTXTEN from scratch. Also, like Bandit suggested, you should throw some offshore equities into the mix as well.
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