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Showing content with the highest reputation since 09/21/2019 in all areas

  1. 3 points
    Hi all, I recently wanted to compare fixed deposit rates across different banks. I realised that there is no such thing as a quick comparison of the fixed deposit rates. Sites like mytreasury.co.za and hippo.co.za require contact details (& they ended up sales calling me - arghh) & only give a partial view. So I ended up going to each banking website. Some banks quote nominal rates. Others effective (yay for effective annual rates), others simple interest and then others come up with their own terminology. Frustrating. Anyway, it took me a while, but I ended up understanding what the banks are quoting on their website & converted all the rates to effective rates. Here are the results of my findings, which have been made public at www.ratecompare.co.za. Best 3 month rates - African Bank & Discovery Best 6 month rates - African Bank, Discovery, Capitec Best 12 month - African Bank, Sasfin, Discovery Best 2 year - African Bank & SA Retail Bonds Best 3 year Sasfin & SA Retail, Capitec Best 5 year - African Bank, SA Retail and Capitec
  2. 3 points
    So I recently found myself doing a fee comparison between 10x (I am currently with 10x), Outvest, EasyEquities and Sygnia. Results: The cheapest platform depends on your RA value. Outvest is cheapest once you hit +/- R450k Below that Sygnia is typically cheapest. I made my research results freely available in the form of an interactive calculator. Here it is. https://mymoneytree.co.za/calculator/ra/
  3. 3 points
    Black Friday will take place Friday, 29 November 2019. When you come accross good Black Friday deals please post them there I will keep a list in the OP with all the good deals and participating stores. Please post what items you are looking for then we can all look around for deals on the day. Personally I would like to buy a 55" to 65" TV and whatever MTN deal is good this year. Companies participating in Black Friday 2019: Takealot: https://www.takealot.com/promotion/bluedotsale OneDayOnly: https://www.onedayonly.co.za/ Wootware: https://www.wootware.co.za/black-friday/ Makro: https://www.makro.co.za/black-friday MTN: URL to be confirmed AC Direct: https://acdirect.co.za/product-category/black-friday/ CellC: URL to be confirmed Pick n Pay: https://www.pnp.co.za/pnpstorefront/pnp/en/blackfriday HiFi Corporation: URL to be confirmed Checkers: URL to be confirmed BidorBuy: @Bandit https://www.bidorbuy.co.za/blackfriday The Pro Shop: https://www.theproshop.co.za/promotion/black-friday Cybercellar: URL to be confirmed Game: https://www.game.co.za/game-za/en/black-friday-2019 Dion Wired: URL to be confirmed Woolworths: https://www.woolworths.co.za/dept/_/N-1gdu29e Clicks: https://clicks.co.za/brands/blackfriday Digicape: https://www.digicape.co.za/black-friday Dial-a-Bed: URL to be confirmed PiShop: URL to be confirmed DIY Electronics: https://www.diyelectronics.co.za/store/304-black-friday RSA WEB: https://www.rsaweb.co.za/ftth-black-friday-cyber-monday/ Dion-Wired-Black-Friday.pdf CNA-Black-Friday.pdf MICA-Black-Friday.pdf Dischem.pdf Vodacom Black-Friday_7.pdf Game-black-friday-book1.pdf game-black-friday-book2.pdf Samsung Black Friday Specials 2019.pdf Mitabyte Black Friday 2019.pdf Pick-n-Pay-Black-Friday.pdf Neon Sales Black Friday Catalog 2019.pdf checkers-black-friday.pdf MSC-Black-Friday.pdf Adidas_BlackFriday_Franchise_Store.pdf Samsung_Black_Friday_Catalogue.pdf Hirschs BF 2019.pdf Baby City Black Friday.pdf Cell C Black Friday.pdf MTN Black Friday 2019.pdf MTN Business 2019 Black Friday Deals Flyer.pdf Malls Tiles Black Friday.pdf Telkom Black Friday Deals.pdf
  4. 3 points
    It was a tough choice between Discovery Bank and FNB, because I have posted before asking about ebucks and we have quite a few threads about it. I did set out to open an FNB account, but had endless hassles online and it ultimately required me to go into a branch so they are out - I do not want to rely on a branch in 2020 for banking. I then decided oh well let's give Discovery Bank a try, maybe I get a good deal from Virgin Active from this exercise, because make no mistake they (Discovery) are the most expensive bank in SA. Here is a link to all the accounts available on Discovery. If you read this thread, pop over to this FNB vs Discovery Bank thread first to see some of the pros and cons of each and whilst you are at it there is a great thread about FNB's Ebucks as well to give further insight in what is available in the South African banking landscape today in terms of rewards and loyalty programs. Anyway to get back to the point I'll try to write this the same as I did for the How to open a TymeBank Bank Account thread. Speaking of Tymebank to open a Discovery Bank account was relatively straight forward, but nothing compares to Tymebank that process is smooth and quick it took me less than 5 minutes to open a Tymebank account, it took about an hour fiddling with files and setting up syncing etc to get everything ready for the FICA process of Discovery, I will get to that in a moment. How to open a Discovery Bank Account Step 1: Register on this page (it won't work if you go straight to the app, you'll sit in a queue) - where the button says leave your details, fill that in. You will then receive instructions with a formatting issue telling you to go login on the app. Step 2: Download the Discovery Bank app and then login using the ID Number you registered with in Step 1. Step 3: Follow the instructions to FICA your account and you are done. When you do Step 3 they will ask you for various documents which you need to upload from your phone (there is no website just an app) this means you need to make sure those files are on your phone. In my case I logged on to Rawson on the PC and downloaded my latest Invoice and Lease Agreement. I then uploaded that to dropbox and I then downloaded and synced dropbox with my phone, but the Discovery App cannot access dropbox, so you need to go to dropbox on your phone and then "export" the pdfs to your phone (save it to the device) then it should sit in your phone's download folder, you can then through the Discovery Bank app navigate to your downloads folder and upload the files. I did the same for my Capitec bank statements. I logged into Capitec on the website and then downloaded the last 3 months worth of bank statements and then synced it to my phone through dropbox and exported it to enable Discovery's app to access it. Once that schlep is done you should get an SMS and E-mail to welcome you. I received a call from the courier company about 3 hours later confirming my delivery address, because they will deliver your Discovery Credit Card to you. There is the option for you to collect it as well, but I am paying them R400 per month so I ticked the "deliver it" option even though the bank's office is down the road - sorry, not sorry. Notes: There is ZERO website - I do not know what on earth they are thinking and I am not a predictions man, but I am fairly sure South Africa is not ready for a "App only" bank not in Infrastructure to make that happen and most certainly not in education and access (expensive data, limited coverage and cost of beefy "capable of driving a bloated banking app" phones.) Besides the "infrastructure" shortfall there is also the compromise angle - Alternatives exist so why would I want to use the app to pull and print statements when I can log onto Capitec or FNB on the website and do a lot more administrative tasks more efficiently. This comes back to earlier about Tymebank, they are an App based bank, but when you want to make use of power features and do administrative tasks the website is there and your PC is connected to the printer and have excel on it to pull your CSVs into - Goodluck trying to do that with discovery without going through a whole process between devices and using third party apps to sync it all. Like @SimonPB would say "make no bones about it" this app only approach will make it more difficult for less technologically-adept customers to print out bank statements and facilitate transactions. Concerns: I found quite a few formatting issues and some bugs (screen would freeze if you navigate between transactions and pay) I reported this to them, but have not gotten anything back and they don't respond to it on twitter either. Normally that won't bother me, but if you are going to be an expensive bank without any physical presence then I expect you to be around 24 / 7. The app is also sluggish, but I suspect that is due to latency since it appears they use AWS as well. Overall my entire experience with Discovery Banking so far is perfectly summed up by @Bandit With that said one thing I am excited about (as a Discovery shareholder) is the fact that Discovery (JSE DSY) now have a key insight into all aspects of our lives from health and insurance all the way to banking. This should in theory put Discovery in a position to do incredibly advance psychometric analysis on its users and map psychological traits for risk evaluation. As someone with a very keen interest in behavioral psychology this aspect fascinates me especially when it comes to credit facilities because with the transactional banking data Discovery can now create a far more accurate risk assessment based on who you really are not what you have done in the past. Bonus: Here's some screenshots of the app
  5. 3 points
    STXEMG + STXWDM = ASHGEQ Well more or less...
  6. 2 points
    So ASHGEQ will suspend trading on 9 September and the ETF will be replaced with the Ashburton Global 1200 Equity Fund of Funds ETF (ASHEQF) (also launched on 9 September). This is the new feeder fund discussed in the previous post. (Source: ASHGEQ SENS announcement 1 September 2020) We shouldn't notice any immediate difference in our portfolios, I guess, except the change of code from ASHGEQ to ASHEQF.
  7. 2 points
    I'm curious if you've reviewed your rationale recently now that the waters have temporarily calmed. Do you still think you were thinking clearly or do you recognize a little bit of the recency bias and nihilism that drove the choices you made here? I'm speaking with regards to: 1. Cashing out your pension (!) 2. Panic selling from a passively managed portfolio (As an aside, who exactly was "trying to take your money"? 3. Staying invested (due to admin inertia) in the RA while thinking there was no way it could recover (I'm curious to know if it did and if so/not what exactly is your RA invested in and have you looked to tighten up there?) 4. Not wanting to add more to your RA while everything was on sale For the sake of fairness, I'll be transparent that I did nothing during the crash. Literally nothing. Everyone around me was tinkering and saying that I was crazy continuing with business as usual but I just couldn't understand why an investment plan that I made when I was calm and rational, specifically to whether the longterm (a longterm that EXPECTED crashes and "once in a lifetime" global events) needed to suddenly be abandoned. I don't regret that decision. A part of me wishes I'd taken on more shifts so that I could buy more during the dip, but again that wasn't part of my longterm plan so I felt silly even considering it. Even excluding rand weakness, my portfolio is essentially where it was precrash. My RA is shining too... with its 70% local. I think the financial consequences of the last 9 months are far from over but my plan remains the same. If there's anything this storm taught me it's that you have to build a plan that matches your risk tolerance or you'll be prone to making decisions in the heat of the moment that contradict that plan. I'm curious if yours has changed at all with a bit of the tailwinds behind us and a bit more perspective? I think it would be a useful update.
  8. 2 points
    Nothing with regards to their product offering. Biggest mistake I ever made though was "upgrade" to their Private Client suite which is a bunch of bs. Most of the time you have to phone the relevant department anyway. Bigger deposit can potentially mean better interest rate. If we put the interest rate aside, there should be no difference in repayments between having a R1 000 000 bond with R200 000 in an access facility vs a bond with R800 000 outstanding. The fundamental differences (and take it with a pinch of salt): Access facility means just that, you have access to any extra funds you put in your account. Great for an emergency fund, but easy to spend if you are "bad" with money Extra money in the access facility returns at the rate of your home loan interest but tax free. You pay tax on interest you gain but not on interest you save. Down side obviously is that the rate of return is pretty low compared to what equities are returning, so having too much in the access facility is potentially bad given the low interest rates. You cannot fix the interest rate on a bond with an access facility which is something people may want to do in a year or so's time Personally - I took the access facility to keep my options and access to funds open.
  9. 2 points
    A market maker pays us to send them an order for shares. In return they guarantee execution at the current best price. The market maker can then use the order to get a competitive edge.
  10. 2 points
    Morning all, Which JSE broker offers trading in local bonds for private accounts? What are the costs involved? What are minimum trade sizes? Feedback appreciated.
  11. 2 points
    Service/Product Description: Many professions, such as Chiropractors and Physiotherapists are required by their governing bodies (eg. Health Professionals Council as well as the Allied Health Professions Councils) to capture a consent form related to the COVID-19 pandemic when they treat their patients. This will create a mountain of paperwork that can easily get lost. [CUE intense music, cloud of smoke] Enter Online Forms - The solution to keep your consent forms and staff registers on a digital platform where they can't get lost and are safe from prying eyes. Simple capture form that is a "fill in the blanks" or "select an existing patient" and it creates a signed document easily! Location: https://organicode.co.za/onlineforms About us: OrganiCode hopes to build organic, lasting and growing relationships with customers using code. We do custom development, but also have a couple of inhouse products under construction with Online Forms being the first out for public consumption. Links (optional): https://organicode.co.za
  12. 2 points
    1. See my post above. 2. The NFTRACI should be fairly constant over the short term since it consists of mixed term fixed deposits with predetermined interest rates. However, with the costs, it really isn't any better than a money market account. 3. Tyme bank offers excellent interest rates depending on how long you keep your money there: 6% interest from day 1, 7% after 30 days, 9% after 90 days. 10% if you give 10 days' notice after 90 days. (According to their website. I have some savings money there and have received these rates too.)
  13. 2 points
    Personal preference. It's more diverse and it pays dividends (STXWDM is total return) which is minimal but to see a couple of bucks just randomly appear in my account every now and again makes me happy A combination of STXWDM and STXEMG can achieve the same or better as just having ASHGEQ but that's too much thinking work. TLDR; no real reason...
  14. 2 points
    Here is a helpful interactive calculator which shows the cheapest RAs in SA for different RA values. Calculate here.
  15. 2 points
    Greetings Money has been a cause of concern and i really want to do away with all this anxiety it brings to my day to day. Am always worried of running out but well am not here to vent. Moving on. From my research there are a couple of things i have to get right before i can ensure my finance future. Bank account Savings (Emergency Fund usually then merely savings[a quicker and more accessible sum]) investing The list might not be in its best order nor most detailed form but thats what i know for now(for the sake of this post). Would anyone please assist me with either information and or guidance with these three aspects and also help me on the right path. Tyme Bank would have been my go to bank. Its rates seem lovely. I understand that all the figures advertised may come to change sometime soon and what not but as for now and making a pick, the rate are a good enough starting point. Unfortunately i am not a South African citizen and have even considered other online banks but have not been too luckily finding one that is laid back on the fees and requires to open an account. Any ideas ? I have resorted to FNB EasyAccount(PAYU) and Standard bank(Student Achiever)(am currently a student doing my 3rd year and fear i might not be in South Africa for as much longer to build my savings in a South African bank to then take it out and perhaps suffer hefty fees. Am not sure how this all works but thats why i would like to get an international online bank where that concern is cancelled out) I hope to have my an FNB account forever and hope to bank from wherever in the world with then even later on and hence settled for them and my current EasyAccount before an upgrade to an different account. In the event i save with them(hopefully i do), i feel i have reason to foresee a longterm relationship. Investing, i want to use EasyEquities to make all my investments. They were suggested by Platinum Wealth and hey, i like them. I do not know if its better to have all i save and invest with them or not. Assuming there is a manner of saving i can do with tem in a TFSA. i really dont know how the platform works but i am dabbling in and with information to see what and how far we can go together. i trust that i can get some scrutiny here and get some answers as well. Dont take too long i dont have time. I want to spend it all on the market, i hear thats how you earn anything in the long run Regards PS:I understand it depends on what i dash dash dash lol. Please throw me in the deep end and give me a broad response lol assume everything
  16. 2 points
    I'm no expert but assuming you are far away from retirement age and as per user name you intend to be financially free by 2029, do you really want your money locked away in an RA? Anyway, what I do is this: Max out TFSA first Contribute a percentage to pension (15%) because I can get this money out if we immigrate. Point is: I'll not be force to by an annuity one day and won't be subject to whatever unknown tax regulation there will be one day I contribute a small amount to an RA every month to 1) offset any monies I might owe SARS come tax season and 2) just in case... Once I leave my current job I'm still in two minds on what I'm planning to do with my pension. Currently I'm leaning towards taking the tax hit, cashing it out and investing it offshore. I trust this SA government and pension/RA money exactly f**ol.
  17. 2 points
    Desperately looking for a pair of Galaxy buds. Hauwei Freebuds Lite are on sale but would prefer Galaxy Buds if there is a good deal.
  18. 2 points
  19. 2 points
    A thread on the The money challenge #2019MoneyChallenge Here’s how it works Months are assigned a number from 1-12 Jan = 1 Feb= 2 Mar= 3 And so on to Dec = 12 We then have a multiplier lets 2 and an example. how this then works is you multiply the multiplier by the months’s respective value i.e 2 in the case of Feb. So Feb would be 2 * 2, then you multiply the results by Rands you want to start with, could be for now lets use R100. So in total you would have Jan = (1 * 2) * R100= R200 Feb = (2*2) * R100 = R400 Mar = (3*2)* R100 = 600 And so on till Dec = (12*2)*R100= R2400 In total you would then save R15600 over the 12 months Whats cool about this is you can change the “Rands” value and the “multiplier” value to suit your goals and afffordability Examples Multiplier = 0.5 Rands= 50 Jan = (1 * 0.5) *R50 = 25 Feb = (2 * 0.5) *R50 = R50 Mar = (3 * 0.5) * R50 = R75 …… Dec (12 * 0.5) *R50 Total = 1950 Last example Multiplier =3 Rands= 200 Jan = (1 * 3) * R200 = R600 Feb = (2 * 3) * R200 = R1200 Mar = (3 * 3) * R200 = R1800 … Dec = (12 * 3 ) * R200= R7200 So depending on where you are in life financially you can start snow balling into higher savings rate. From small amounts to big amounts.
  20. 2 points
    @Njabulo Nsibande @Spreadsheet Ranger @Groovy @SaurusDNA
  21. 2 points
    https://www.houseandhome.co.za/cat/Nov19/RSABlackFriday/index.html
  22. 2 points
    /does happy dance: https://www.sharenet.co.za/free/sens/disp_news.phtml?tdate=20191031100000&seq=22&scheme=default
  23. 2 points
    So it's that time of the year again. I'm bored and prone to messing around with something that works. Buying a house wrecked my saving powers for a bit now I'm fortunate enough to top up my TFSA for the year. I already missed out on making any contributions last year because of said house and really didn't want a repeat. So with everything back on track I log into EasyEquities to take a good look at what my account is doing. I knew it was doing well but it is still nice to see a portfolio with everything in the green. Just goes to show: like nature conservation, time plus less human contact is about the best thing you can do for your investments. With that being said, let's change things! (I'm an anarchist). Over the last few years I moved everything to offshore ETFs. Considering my house, RA and pension all being very much exposed to SA I think it is a good idea to get maximum offshore exposure with your other investments. Currently it looks like this: CSP500 (stopped contributing to it in favour of STXWDM) STXWDM STXNDQ (30%) Knowing very well what I just said about international exposure, I thought about introducing PTXTEN back into the mix. CoreShares will amalgamate this and PTXSPY into a new ETF in the near future (not exactly sure of the date) and the changes they are making looks good to me. There's also the ETF5IT ETF from Stanlib which looks more tech concentrated than STXNDQ and maybe it is worth investing in GLODIV instead of STXWDM (the reason: although not a lot, it does pay some dividends and performance is not that far off the MSCI World). It is not heavy on tech stocks at all but STXNDQ/ETF5IT makes up for that. I can sell everything in my TFSA, start again and come up with something like this: PTXTEN / SA Property - 30% GLODIV / Offshore - 45% EFT5IT / Tech - 25% But because I may not want to incur extra cost for selling off (too many) funds in place of others, maybe something like this makes more sense: STXWDM (freeze it) and start contributing the GLODIV PTXTEN (in favour of the CSP500 already in there) STXNDQ (freeze it) and start contributing to EFT5IT ....told you it was the silly season
  24. 2 points
    Well, some "big dividends" for PTXTEN came in today - a special final dividend payout up until the date it changed to CSPROP it seems. And this one is substantially larger than last month's payout!
  25. 2 points
    Hi guys. I have an appointment tomorrow morning, to finally get my will drafted. (Free of charge) Just want to say thanks for the help and guidance.
  26. 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?
  27. 2 points
    Ok so I had some spare time. Browsed through all the SA banks' websites, scraped their fixed deposit rates, read the fine print and converted them to effective annual rates. I have made this research public & now you can see all of SA's fixed deposit rates on offer at https://www.ratecompare.co.za . I plan to update the rates on a monthly basis. Comments welcome for other banks to add or any feedback in general. I hope someone can draw value from this!
  28. 2 points
    @Bandit - thanks . Jack has been addressed & now features a light colour.
  29. 2 points
    ASHGEQ or STXWDM - 65% SMART or CTOP50 - 35% That's if I had to have local exposure. Else I would just go 100% ASHGEQ. That's very simple.
  30. 2 points
    You as an individual cannot open a pension fund. The company you work for can. As an individual, you can open an RA. RA - matures at retirement age. You'll then be able to buy an annuity with it which will provide you with income. Other than that, the only way to get money out of an RA is to formally emigrate or you have to prove that you'll basically die if that money doesn't become available (I've only heard of this, can imagine that it is borderline impossible). Pension - when you leave your current place of employment you'll have four options: Take the Pension money and move it into an RA Move the pension money to your new employer's pension fund Take the money and run (you'll pay tax on it) Move it to a preservation fund Preservation fund uses the same type of funds (regulation 28) as your pension and RA does, however you have the option of withdrawing from the fund once before retirement. Not sure if that restriction is per fund or per tax entity (you). Personally, I have a pension fund at 10x and an RA at Allan Gray. When I leave my current place of employment I will move my pension to a preservation fund. If I had to start an RA and only have one - 10x.
  31. 2 points
    Hey guys, This thread also got me looking at my tfsa. Would it be advisable to get rid of either my coreshares top50 or satrix divi plus, and use that to invest in ptxten ? I currently have 11K in each. Top50 is currently 3.9% down (- R470) Divi plus is currently 1.2% down (-149) Or would it be better to start from scratch with ptxten ? Thanks.
  32. 2 points
    If I were to choose just one ETF to invest in, without a doubt in my mind, it would be the Ashburton Global 1200 Equity ETF (ASHGEQ). If I had to choose just one, I would never go country specific like US or Japan - this just has too much concentration risk - get a bad president or a war in that country and might just lose all your money - I'd definitely go for a world index. Therefore, from your list, I'd immediately disqualify SYGJP and SYGUS. From the two world ETFs on your list, both STXWDM and SYGWD track the same index but Sygnia charges double the fees. Therefore it gets disqualified too. So we are left with STXWDM, which is an excellent ETF and would be my second choice after ASHGEQ. There are two reasons why I prefer ASHGEQ over STXWDM: 1) ASHGEQ has some emerging market exposure, which traditionally provides better growth than developed markets over long periods, whereas STXWDM is only developed markets (safer, but less growth). 2) ASHGEQ is more diversified than STXWDM, lowering the downside risk. ASHGEQ is slightly more expensive than STXWDM in terms of fees, but I still think the possibility of better returns from ASHGEQ, as well as the better diversification, do justify the fees and will be worth it in the long run. So for your second question - what would be a good first ETF? Either Satrix MSCI World (STXWDM) or Ashburton Global 1200 (ASHGEQ) would be excellent choices, in my opinion.
  33. 2 points
    Your timing is impeccable! PTXTEN usually declares their 3rd quarter dividend on or around 4 October, to be paid out in the middle of the month. So you can expect a nice bonus from the ETF later in the month! In fact, I've received over R1000 dividends from PTXTEN already in my TFIA this year,. It's a lovely feeling seeing that much money just suddenly appear in your account out of nowhere!
  34. 2 points
    I love my PTXTEN ETF! The dividends are fantastic at 9.4% per annum (currently), and with the new changes, I'm hoping for excellent growth as well. I wouldn't be surprised in this one gives the best total return of all over the next few years. Plus, it has never been this cheap to invest in property! On top of that, the massive dividends are completely tax free, making this particular ETF one of the best ETFs on the market in terms of tax savings. GLODIV is a really nice ETF too, but i think it is better outside of a TFIA as the foreign dividends are not tax exempt. If it were up to me me, I'd stick with STXWDM.
  35. 2 points
    Hi janvdwest I'm not a tax expert, but the way I understand the tax on trading is as follows: When buying or selling a share, you first pay brokerage and Strate fees (which are not taxes), and VAT is levied on these costs. The first direct tax you pay is the securities transfer tax of 0.25% which is levied on every transfer of a security. When you sell a share at a higher price that you bought it for, only the profit is considered to be capital gains (not the whole proceeds of the sale). The first R40,000 of capital gains you make per year is exempt from tax. Any capital gains above R40,000 is taxed at 18% p.a. for individuals and 22.4% p.a. for companies. When a South African company pays a dividend, it withholds tax of 20% on the dividend that it pays (not 15% as you mentioned in your post - that was increased in 2017). When an individual receives the dividend from a South African company, it is exempt from tax, because the tax has already been withheld and paid over to SARS by the company paying the dividend. There is no VAT on dividend income. Income earned from REITs (Real Estate Investment Trusts) is not considered as dividends and there is no withholding tax on these. However, this income should be declared as income on your annual income tax return and will be taxed along with your overall assessment according to your normal tax bracket in the same way as if you rented a property out yourself. When you finally dispose of your REITs, then any profit made from the difference between the selling and buying price of the REITs is considered a capital gain, taxed at 18% p.a. for individuals and 22.4% p.a. for companies (also subject to the R40,000 exemption for total capital gains per year). Then, finally, dividends, income and capital gains earned within a tax free investment account are exempt from all of the above taxes (except for VAT on brokerage and strate fees, of course).
  36. 1 point
    Yes, you can either phone the bank and ask them to take an debit order of X Rand each month (X being any amount you choose) or you can just EFT a higher amount.
  37. 1 point
    Introducing the Platinum Wealth and EasyEquities TFSA Basket What is a Tax-Free Savings Account (TFSA) A Tax-Free Savings Account (TFSA) and a Tax-Free Investing Account (TFIA) is exactly as the name says, it offers you a means to save and invest without having to pay income tax, dividends tax or capital gains tax on the returns from these investments. The government introduced Tax-Free Investments as an incentive to encourage household savings. This incentive became available on 1 March 2015. How does a Tax-Free investment work? You can only contribute a maximum of R33 000 per tax year (annual limit) and up to the lifetime limit of R500 000 per person. If a person exceeds the limits, there is a penalty of 40% of the excess amount. Example: Taxpayer X invests R35 000, therefore, exceeding the annual limit by R2000, 40% of R2000 = R 800 must be paid to SARS. The returns of your TFSA does not affect your limits. E.g. If you invest R33 000 for the year and receive a return on investment of R5 000, the total amount in the account will be R38 000. The following year, you will still be able to invest your full R33 000 for the year. What are Exchange Traded Funds (ETFs) You can open a Tax Free savings and investment account with any licensed Bank, insurer or broker and you can choose from one of the following investment vehicles: Fixed deposits Unit trusts (collective investment schemes) Retail savings bonds Certain endowment policies issued by long-term insurers Linked investment products Exchange traded funds (ETFs) that are classified as collective investment schemes. We recommend that people start out with ETFs. In our opinion, Exchange-traded funds are one of the most important and valuable products created for individual investors in recent years. Essentially you can look at an ETF as a diversified basket of different companies, enabling you to buy the basket instead of all the underlying companies individually. Innovation has been the hallmark of the ETF industry since its beginnings less than 25 years ago. Undoubtedly, there will be new and more unusual ETFs introduced in the years to come. While innovation is a net positive for investors, it’s important to realize that not all ETFs are created equal. Our ideal TFSA portfolio Based on the real-world feedback and research by our community members we made this TFSA basket to help South Africans start their investment journey. With this basket, you will also be joining like-minded investors on our platform and find common ground for further learning, research, and local investor meetups. Our basket consists of the following ETFs: CoreShares Proptrax Ten ETF (Fact Sheet) Satrix MSCI Emerging Markets ETF (Fact Sheet) Satrix MSCI World ETF (Fact Sheet) Satrix Quality South Africa ETF (Fact Sheet) This portfolio gives you exposure to South Africa, the developed world, emerging markets, and property. How to open an EasyEquities account First, you need to click on this link to register (Click this Link) After you have registered you need to Fica your account by uploading your documents to EasyEquities. You need to upload a copy of your ID or Passport Document and Proof of Address like a utility bill, such as water, electricity or rates (less than 3 months) or a copy of a signed lease agreement (by both parties), (less than 1-year-old) Alternatively, you can email the documents to [email protected] Please quote your account number in the subject line of the email. How to buy the Platinum Wealth TFSA Basket Navigate to your TFSA Account and then click on Browse the market. Alternatively navigate to your TFSA account and click on this link (Platinum Wealth TFSA Basket) You can set up a monthly payment either using the funds in your EasyEquities account or you can set up a debit order from your bank account. Otherwise you can also buy the basket once off as and when you like to do so. If you have any questions regarding the EasyEquities platform feel free to ask @jonobruton or tweet to EasyE directly.
  38. 1 point
    One is kinda tempted to try and catch this knife EDIT: Geez, when you see a share lose 70%+ you think damn that's rough, but it's not until you zoom out really far that you see "oh shiaat, we're back at mid 95-2001 prices. Two decades of growth - gone.
  39. 1 point
    Tax free investment account limit increased to R36000 per year. This is good!
  40. 1 point
    Thanks to @Njabulo Nsibande who created this how-to thread: The basic idea is this: Every month has a number: January = 1, February = 2, March = 3 .... December = 12 You decide on a multiplier number, let's say: 2 You decide on a base amount of money: R100 Every month you take the month's number and multiply it by the multiplier and the base Rand amount. The result you save into a savings account. Example 1: Multiplier: 1 Base Rand amount: R50 Jan (1) x multiplier (1) x base amount (R50) = 1 x 1 x R50 = 1 x R50 = R50 Feb (2) x multiplier (1) x base amount (R50) = 2 x 1 x R50 = 2 x R50 = R100 Dec (12) x multiplier (1) x base amount (R50) = 12 x 1 x R50 = 12 x R50 = R600 Example 2: Multiplier: 2 Base Rand amount: R100 Jan (1) x multiplier (2) x base amount (R100) = 1 x 2 x R100 = 2 x R100 = R200 Feb (2) x multiplier (2) x base amount (R100) = 2 x 2 x R100 = 4 x R100 = R400 Dec (12) x multiplier (2) x base amount (R100) = 12 x 2 x R100 = 24 x R100 = R2400 Let's use this thread to track our progress for 2020 and see if we can meet our targets. Maybe those who want to participate can tell us and if you feel comfortable the amounts you have chosen.
  41. 1 point
    In simple terms, it's a forum where people can ask financial questions and others do their best to answer them for you.
  42. 1 point
    Thanks for making this effort - very good summary indeed and was really needed. 2 questions: 1) How is African Bank credit rating compared to the other banks, can you possibly add that as another column to understand risk associated with the return? 2) What happens if one of these banks defaults like VBS? Is it insured/covered by Reserve Bank? Any insurance company that covers this risk/gap of exposed amounts?
  43. 1 point
    Also looking for a smart TV the hisense 50 inch at R5500 seems decent
  44. 1 point
    Is it just me or does the deals from Vodacom look like they inflated the price, not very impressed.
  45. 1 point
  46. 1 point
  47. 1 point
    All I'm going to say is this: Assuming you bring in a R20,000 pm salary, SARS will take R2,722.06 and leave you with R17,277.94. Assuming you pay 15% of your salary into an RA (and your payslip is structured like a pension fund), SARS will take R1,942.06 and you'll be left with R15,057.94. So for the R3,000 you saved into an RA/Pension, you are only R2,220 "poorer" and scored R780 (that's about 25% growth right there depending on how you look at it). If your salary wasn't structured you'd get back almost R10,000 from SARS come EFiling season provided you include it on your tax return. Now, it's not all sunshine and roses. The money in the RA/Pension will be taxed again at some stage and you don't know what the tax climate is going to be like at that time. They're also talking about prescribed assets (Eskom, Telkom etc) which is a concern. I reckon that if you can afford an RA you should definitely make use of it (a Pension Fund is even better imo, less rules). If you cannot easily afford it you should probably go speak to a financial advisor but I'm willing to bet good money that their response will be the stock standard: Get insurance Settle debt Secure retirement Look at other investments (TFSA). So if you do go see an FA, get one that charges for the consultation and with a good reputation and most importantly: DON'T SIGN ANYTHING. Listen...
  48. 1 point
    Anybody knows why Sasfin shares dropped to 30 rand. I am interested in buying the shares and the co looks pretty solid. any ideas?
  49. 1 point
  50. 1 point
    If you do go TFSA make sure it is money you are saving for retirement (when you're 65 or something). You don't want to withdraw from it to buy a car etc.
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