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Showing content with the highest reputation since 06/12/2016 in all areas

  1. 5 points
    Just a quick take on the AGM yesterday. The AGM took place in a restaurant in Randburg, not really a conferencing setting, not well attended I would say. The place was noisy, restaurant staff moving and chatting, trucks passing by, one could hardly hear the topics discussed & answers given (1st half). Quite poor from my perspective. We could have even used one of their school halls to be honest, with a microphone and a speaker, they are a start up after all. No need to go fancy, but the quality could have been better. Questions asked for for me were not answered in a satisfactory and comforting manner. Issues of liquidity for example, as stated in the reports that the “going concern” topic is an issue.....Management + Directors could not answer how long the company will be able to go on with the cash they have in the bank or that they generate. In my books they are in over their heads. Concerning to me me was also the topic of the suspension, Management and directors do not know when the suspension will be lifted. When I called last week, I was told this any time this week, but did not happen. Why concerning ? Well the CEO indicated they are not able to continue with the schools expansions due to the fact that they cannot raise capital as a result of this suspension. Then they shift the blame....it’s up to the JSE when the suspension will be lifted. They further more placed the blame on the previous Finance person that they appointed for the delay in results, trying to give comfort with the fact that the person is no longer with the company. In my books they didn’t take accountability at all. In in terms of regulatory understanding....zero....willingness to get up to speed, I did not see it. Shareholders in this company are taken for ****. Rookie mistakes point me to this conclusion. PEM is a great idea, with potential but being run by incapable management. I will salvage what I can if trading resumes....much more better opportunities in the market. One cent is coming for this one. Too many wrongs and they don’t know how to fix it and not willing to get help to do so.
  2. 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
  3. 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/
  4. 3 points
    Just thought I would put this out there....I have a Telegram chat channel where we talk about bitcoin mostly, as well as other cryptocurrencies. If you want to ask a specific question, or would like to just chat casually about bitcoin / crypto with other people in South Africa, check it out. The channel is informal, and it is not a trading signals channel or anything really technical. Its mainly for casual chat about crypto. If you are on telegram, come and visit! https://t.me/bitcoinzarchat
  5. 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
  6. 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
  7. 3 points
    STXEMG + STXWDM = ASHGEQ Well more or less...
  8. 3 points
    Great to see forum members discuss DCX10 here - we are honoured! Owning the market weighted index of the top 10 Crypto's is not the holy grail of Crypto investing, but historically it has outperformed Bitcoin by a margin of roughly 50%. Past performance is of course no guarantee of future returns, but we think the index will beat Bitcoin again. The timeframe is uncertain though. If you're comfortable with this position, 1% per annum fee for the convenience of managing the composition of the index, fades into insignificance compared to the outperformance. Happy to discuss more...
  9. 3 points
    Good day all, Our questions 1) If we need R50k a month to survive when we retire how much do we need to have invested in total ? 2) If the South African government implemented prescribed investments would it affect any investments which are not RA's ? Any input would be greatly appreciated. Have a great weekend all. Sideways
  10. 3 points
    While there is certainly merit to the argument that on average, in the long run, passive investments perform at least as well as, if not better, than actively managed investments, the funds in which Momentum has invested your money (ie. Allan Gray, Coronation, Investec etc) have had phenomenal performance since their inception, and they are certainly not just your average actively managed funds. These funds are among the best South Africa has to offer with returns beating the benchmark year after year. Also remember that offshore has its (important) cons as well as its merits. While offshore investments may serve as a Rand hedge, they simply cannot keep up with our inflation. Even with the annual average 4% drop in the Rand, the 2-4% growth typical of global growth, even when combined with Rand depreciation, does not usually beat South Africa's 6.5 - 8% inflation. South African markets do tend to perform a few percent higher than inflation though, and I'm pretty sure that if you look at your Momentum fund returns, you're probably close to 11% annual return over the past 10 years after the 2% costs have been deducted, even though the market has been flat. In every/any chosen period longer than 10 years (10-years, 15 years etc) South African investments have beaten the offshore average, even when compounded with Rand depreciation. I'm wary of moving too much money offshore. Consensus at the moment is that 30-40% of your money offshore presents the optimal risk to reward ratio. Also bear in mind that 30 -35% of your Momentum fund is already invested offshore. If it were me, I'd keep the bulk of the money with Momentum. Especially since you're 55, the actively managed approach, which switches between bonds, stocks and cash as the market fluctuates, decreases your risk significantly. The good thing about managed funds is that they limit the downside, while they may underperform passive investments slightly during strong bull markets. At 55, preserving your wealth is definitely more important than high-risk growth. So yes, I personally do believe that moving your Momentum investment to passive investments would be a mistake in your case. If it were me, I'd keep the R5.5M right where it is! (The extra R2M is only a quarter of your portfolio so it seems a reasonable amount to put in the higher risk passive funds as you have done.)
  11. 3 points
    For a while now I've been asking the question: "What percentage of my TFIA ETFs should be in 'foreign' indices?" Some people will immediately say "Put everything in foreign indices - the Rand is going to collapse or South Africa is going to be downgraded to junk" etc. And yet, the experts will typically tell you to put only 30% to 40% in foreign ETFs and the rest in local indices. So I've done a ton of study to find out why and the results surprised me - so much so that I have now changed the desired weightings of my TFIA ETF portfolio to allocate a greater percentage to local ETFs. Here's the thing. On the one hand, the Rand depreciates on average by 4% per year against the Dollar, and has pretty much done so since the time of Adam and Eve. Therefore, by buying ETFs of foreign indices, you are 'guaranteed' a 4% gain on your investment due to the weakening Rand. Now, on the other hand, let's look at foreign growth and interest on bonds, for example, where a 3% above-inflation is considered a good investment. Let's take England as an example. With its inflation close to 0%, a 3% return on an English investment would be considered "good." So if you had invested in an "England ETF, you would, by way of illustration, get your 0% inflation plus 3% return plus your 4% due to Rand depreciation, a total return of 7%. However, locally, it is South Africa's high inflation that makes it ideal for investment, which at first may seem counter-intuitive. Interest-bearing investments such as bonds and preference shares may also typically return inflation plus 3% - so with our 6% inflation, that gives a total return of 9%. And the JSE does much better than just inflation plus 3%! The other countries (outside of emerging markets) just don't have our inflation and therefore don't have the growth that the JSE index does. This is also why emerging markets are expected to give higher returns than developed markets in the long term. Secondly, putting more than say 40% in foreign indices means you are no longer diversified in the sense that if the Rands strengthens significantly, your portfolio collapses (and historically, it is highly unlikely to average a drop of more than 4% per year). On the other hand, the JSE index is not affected by the Rand in the same way, so whether the Rand drops or climbs, you're still guaranteed your above inflation growth on your local index ETFs. So betting too much on foreign indices is, in essence, going for a higher risk, but with lower returns, the exact opposite of what we should be doing. Of the academic studies I've read, most put the optimal risk-to-reward ratio for investing at 60% local and 40% foreign ETFs, and often support this with models. But now I finally understand why my previous 50% : 50% local : foreign split was considered high risk.
  12. 3 points
    Hi all. I had joined here in March of 2017, but don't think I ever did a proper introduction. I live in KZN on the North Coast for now. I started realizing the need to get into investing, diversifying and saving some capital instead of living pay check to pay check which dwindles before your eyes in our current economy. I started with Easy Equities in 2017, investing in some companies with a percentage of my salary I could afford to loose. Then trading and charts got the better of me and I started learning the ropes via online resources and trial and error, I feel fairly confident with technical analysis on charts now but do know that every day I learn something new and the markets are unpredictable to an extent, If you have some strick money managment rules in place (using consistent win/loss ratios with your stop losses and take profits) and have an edge in reading charts you can become profitable with patience. This lead me to forex and cryptocurrencies due to there massive percent movement in a short space of time. Have been doing a lot of day trading, swing trading and have had my fair share of gains and losses (rollercoaster indeed), have gained and still gaining invaluable experience. I am truly enjoying this field and wish for it to become my main source of income very soon. I am a "Gamer ish" and spend a lot of time at the computer so this fits my lifestyle perfectly. If I can share my experience and thoughts here with others who are looking at doing similar, that would make me happy. Cheers and good luck out there for now. Don't fomo, patience.
  13. 3 points
    My Reasons for my strategy: Local vs global: First, my thoughts on local vs global ETFs. For the last 20 odd-years, the Rand has averaged a depreciation against the Dollar of roughly -4% per year. The S&P500 has had roughly 6.8% growth, thus giving a total return of roughly 11% (including Rand effects) by investing offshore. The JSE, on the other hand, has performed at over 15% per annum for this period. Global returns are generally lower than local returns because inflation is lower globally than in RSA. Thus, even with the dropping Rand, local returns historically still trump global returns in the long run. That's why I'm happy with a 50%/50% split in global vs local ETFs. My ETFs - the good and the bad: CTOP50: The JSE has never been cheaper. It's P/E is good enough even to start being attractive to foreign investors. Also, I love that 10% cap in any one company. This ETF is a must. DIVTRX: If the bear market continues, high-dividend shares perform better. That's why I'm holding on to this one for now, but eventually (after the market starts to recover), I may sell this and buy CTOP50 with this money. PTXTEN: Different asset class - not correlated to the JSE. Property always does well in the long tern and is at a 52-week low. A steal at this price. STXQUA: I just love the companies in this ETF - such attractive fundamentals. I own this one simply because I believe in the companies that this ETF represents. ASHGEQ: Diversified global. Core ETF. GLODIV: A smart-beta ETF - its methodology may outperform the global all-share index in the long run, so a competitor for ASHGEQ. GLPROP: Global property. I'm not too sure about this one, as global property returns are not generally as good as local ones, even with the extra 4% per annum Rand depreciation. I may sell this one eventually. For now, though, with the uncertainty in the market, this is just to have a different asset class. STXEMG: Highest potential for growth over 25 years. Emerging markets fluctuate wildly but always outperform developed markets in the very long term. SYG4IR: I had to have some Tech shares, but I already have too much in the USA through my other ETFs, Thus, this gives my exposure to the newest and most exciting tech in Asia. If I didn't have this I would replace it with STXNDQ, but I just don't want too much USA at the moment. The USA has had it's longest bull market in history. How long can it continue? It might, but I prefer to be diversified. My shares - why I own/will continue to buy these ones: CML: Dividends of almost 10% per annum - that's better than cash even before growth! My favourite stock pick for 2019 at the moment. CPI: Continues to remain strong, even in the terrible 2018. DCP: Tough choice between either Dis-Chem or Clicks. But I didn't want two in the same sector, since the two are very well correlated. I just feel that since Dis-Chem is new and Clicks is already well established, Dis-Chem has more potential for growth between the two. DSY: Historically rock solid, and with Discovery Bank on the way, it looks even more attractive than its already dazzling history. L4L: Still holding on to the belief that this one will take off one day. A bit of a risk, but it may pay off. MRP: Had a bit of a dip, but recovering nicely. Cheap clothes of reasonable quality must do well in the long run. And with its competitors in the clothing department losing the plot (I'm thinking Woolworth and Edgars here), it just has to go up. SHP: The poor performance of this stock has been due to negative inflation of the food products on its shelf (the average prices of its shelf actually dropped in 2018), thus dropping its turnover (and profit). As food inflation is expected to rise in 2019 (also with drought predicted again) this should reverse the losses and lead to considerable gains. This share is also very cheap at the moment.
  14. 3 points
    Hi Taurus and welcome to the forum. Disclaimer - I'm not a financial adviser - just a forum member with a few years of self-study and experience who invests and trades on the JSE, and the following discussion is based merely on my own observations and opinions. Yes, you have too many ETFs. It's not so much the number though, but rather that you have some that track exactly the same index/companies which duplicates your costs and skews your perceived exposure. A few observations: 1. A massive chunk of your investment is indirectly invested in a single company - namely Naspers. The Satrix Indi, Top 40 and RAFI are basically all investing in exactly the same few companies, but in differing percentages. The Indi is largely Naspers, which has historically performed exceptionally well, but now that the fundamentals of TenCent (of which Naspers owns 30%) has changed, the future may not be anywhere as near as attractive. I'd definitely be nervous with such a big percentage of my portfolio in Indi (plus, it's never a good idea to have such a big chunk of a portfolio in a single sector). If it were me, I'd combine all three of these into Satrix 40. 2. The Satrix S&P 500 and the Sygnia Itrix MSCI World are pretty much the same thing with a tiny bit of extra emerging market exposure in the MSCI world ETF. This is duplication and skews your exposure. 3. If you're looking for diversification in property, I'd go at least 20% property (10% local property (PTXTEN) and 10% offshore property (GLPROP)), since it's a different asset class and doesn't necessarily correlate to stocks. If the stock market crashes, these may very well shine. In fact, in the long term, property has always done well. 4. Ashburton Government bonds - a different asset class which is good for diversification but in the long run doesn't do as well as equities. Having these in your portfolio depends on your risk tolerance - these are much safer than stocks, but underperform in the long run (longer than 10 years). If you want diversification with bonds, go at least 10% bonds. Otherwise, it just doesn't add any value to your portfolio, because at 2% of your portfolio, the purpose of this asset class (risk reduction) simply isn't significant and you may as well put it in something higher risk with better potential returns. 5. Sygnia Japan and Eurostoxx: These are already covered in MSCI world. The combination of S&P500, Japan and Euro is pretty much what MSCI world has done for you anyway - you're just duplicating the Sygnia MSCI world ETF and splitting it up into it's components. All you get by having all of these is more costs and a skewed sense of diversification. Why not just combine all of these into MSCI world? 6. Nasdaq and Sygnia 4IR: I personally like tech shares and I think these will do well. Personally, I'd buy more than your 2% in tech - maybe 5-10%. 7. Satrix Quality: I love this ETF. The companies in this portfolio are fantastic with amazing fundamentals. The dividends from this ETF are also extremely attractive. 8. Satrix Fini: This sector is already very well represented in the top 40. Just more exposure to the same thing. NB: Your current exposure to the local Top 40 is 68% of your portfolio (26.14% Indi + 20.32% T40 + 12.03% RAFI + 9.07% Fini, which all have the same companies, especially Naspers, which is more than 20% in your case) This is the whole point - you think you're diversifying, but you're not! If it were up to me, and you asked me to re-balance your portfolio using your selection of ETFs, I'd sell INDI, RAFI, FINI, S&P500, Japan, EuroStox, and combine a whole lot of your ETFs to buy: 60 % Core Shares (Local and Global): STX40 - 20% STXQUA - 10% SYGWD - 20% GLODIV - 10% 20% Property (Local and Global): PTXTEN - 10% GLPROP - 10% 10% High-risk but high potential tech shares: STXNDQ and/or SYG4IR - 10% 10% bonds (If your proposed investment period is less than 10 years) or better still, buy 10% in emerging markets (STXEMG) instead. ASHWGB - 10% (Alternatively, rather than bonds, I'd use this 10% to buy emerging markets in the form of STXEMG, which has exposure to China, Brics countries etc. - lots and lots of long term potential).
  15. 3 points
    Great article from Bruce Whitefield, I bet your banker did not explain it to you in such clear terms: Banks love it when you don’t settle your credit card balance in full. If you owe your bank R10,000 and pay R9,999, then they are entitled – as per the small print – to charge you interest on the full R10,000 rather than the R1 that you failed to pay. It may seem iniquitous, but those are the rules. They even have a special name for people who pay the minimum amount every month on their credit card statements. They are called “revolvers”, and they are charged significant amounts of interest for extending the agreed borrowing period. That is as opposed to “transactors”, who pay the full outstanding balance monthly, having taken advantage of the reward scheme and the interest-free period made available to them. Banks are not great fans of transactors as they make lower fees and earn less interest from them. Still, the financial institution does make a percentage every time their customer uses the card, so don’t feel too bad for the bank. Source: https://www.businessinsider.co.za/beware-these-fiendish-credit-card-tricks-2018-12
  16. 3 points
    Service/Product Description: Freepaid’s API provides seamless, real time access to a wide range of pinned and pinless prepaid products at our transparent, competitive prices. This state-of-the-art programming interface does all the heavy lifting for you. It puts the programming power into your hands, freeing you to put your energy into your own development. You can order PINLESS airtime (direct recharge) or data through this API or you can order a PINNED airtime voucher which is sent to you in the form of a PIN number. Location: 301 Building Three, Tygervalley Chambers, Willie Van Schoor Drive, Bellville, Western Cape About us: Freepaid has been providing state-of-the-art Airtime solutions to innovative South African businesses, large and small, since 2007. Links (optional): Our API https://freepaid.co.za/airtime-api.php
  17. 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.
  18. 2 points
    Here is a helpful interactive calculator which shows the cheapest RAs in SA for different RA values. Calculate here.
  19. 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
  20. 2 points
    I decided to give TymeBank (TymeDigital) a try today. I am very excited for Michael Jordaan's BankZero, but TymeBank beat them to the punch and launch the first fully digital branchless bank. There were some initial hiccups with their website not working, but overall the experience was incredibly smooth. To open a TymeBank bank account simply sign up online through their website (Click here to open a TymeBank account). This process is incredibly simplified through the use of eFica they are able to FICA you without any documents all you need is your ID number (just the number, you type it into the website) and a cell phone (for OTPs and confirmations) then you set a pin and you are done, you now have a fully fledged bank account. There is a catch... In order to activate and get a debit card (visa debit card), you need to go into a Pick n Pay to the TymeBank kiosk. Take your cell phone with because when you log into the Kiosk it will send an OTP to your phone. All you need to do at the kiosk is scan your thumb fingerprints then your account will be fully verified and the machine will print your debit card. This entire process took me less than 10 minutes, registering online took 3 minutes and printing my card at the Kiosk took 4 minutes. After this, I downloaded the TymeBank app from the google play store and its impressive, very neat layout and functional. In fact, I like their app better than Capitec (and I have been using Capitec since 2008). Their app still needs some work, I think they are using some AWS instance not locally so the lag time on the app is noticeable (latency from whatever region they use), but its nothing major. Why did I get a TymeBank bank account? There are zero monthly fees, so I figured if it does not cost me anything to open the account and it does not cost me anything to have the account then why not. Something to note, SMS on TymeBank are free too, other banks should take not, especially Capitec, I know they make a killing on SMSes. The other drawcard for me was the integration with Pick n Pay (although their staff is completely clueless about how Tyme works, I went to two Pick n Pays and neither one's staff had a clue what to do when you want to add funds). Anyway, the reason I like it is that I shop mostly at Pick 'n Pay and with a TymeBank account, you can get double the smart shopper points if you use the card as your payment method and using it to swipe for the smart shopper instead of the blue pick 'n pay card. The other reason I got the account is for the interest. You get 6% interest from day one and if you leave your money you can get up to 10% interest, so I will put a few thousand bucks into this account and just leave it to earn interest, basically extra cash I will put into TymeBank as I will earn almost double the interest I get from Capitec. Another worthwhile note is that all TymeBank account holders get free wifi at all Pick n Pay and Boxer stores, not that I really need this, but for a bank account that does not cost me anything, it's a nice perk to know if I ever do run out of data I can pop into a Pick n Pay and be connected again. How to get money? It might not be obvious at first with all the digital bank and feeling like this is some special service. It's a normal bank account you get an account number so EFT some money to your TymeBank bank account. If you have cash on hand then you can go to any Pick 'n Pay. It will cost you R4 at Pick n Pay to deposit cash into your TymeBank account, which is alright. Pro Tip: The people at Pick 'n Pay will have no idea how to do it, so to avoid boiling your blood tell them this is a normal online deposit (they should understand what that means). Here is the card I got: This is a fully fledged debit card (visa), you can do online payments everything, there are no limits. The interesting bit, this card costs nothing. Capitec charged me R50 for my card.
  21. 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.
  22. 2 points
    https://www.houseandhome.co.za/cat/Nov19/RSABlackFriday/index.html
  23. 2 points
    /does happy dance: https://www.sharenet.co.za/free/sens/disp_news.phtml?tdate=20191031100000&seq=22&scheme=default
  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
    @Bandit - thanks . Jack has been addressed & now features a light colour.
  28. 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.
  29. 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.
  30. 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!
  31. 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.
  32. 2 points
    I'll bite, and answer the questions as my first post here. First and foremost, all information is available on the ebucks website, its not a secret, just take some reading time. https://www.ebucks.com/web/eBucks/earn/earn-from-the-bank-2019.jsp #1 Does the bank account type make a difference? It does.There are certain caps on the earning. Gold for example is capped on earning ebucks on a maximum spend of R7500 in-store and online. Earn rules @ https://www.ebucks.com/web/eBucks/earn/fnb-gold-2019.jsp Premier for example is capped on earning ebucks on a maximum spend of R10000 in-store and R2500 online. Earn rules @ https://www.ebucks.com/web/eBucks/earn/fnb-gold-2019.jsp For both, your checkers earn is capped at 20% of total monthly spend and R1750 for gold or R2000 for Checkers. To get to that 15% earn for checkers, you need to be on ebucks reward level 5. To understand this, you need to look at "Maximise your points to reward level 5" on https://www.ebucks.com/web/eBucks/earn/fnb-gold-2019.jsp or https://www.ebucks.com/web/eBucks/earn/fnb-premier-2019.jsp #2 FNB Fusion Gold VS FNB Fusion Premier – Which is best for ebucks? The level account you go for, depends on both how big your income is and more importantly, how much you spend each month. The spend caps for in-store spend is a good indicator. R10k a month or less spend, then go Gold. If your spend is closer to R15-20k a month then go Premier. If your spend is less than R5k a month skip fnb/ebucks altogether. #3 Does your ebucks cover your monthly bank account fee?For me, it far exceeds my monthly account fees! I am on Private Clients which costs R390 a month (with no additional fees). I earn R2000 worth of ebucks a month, and spend it only on 40% discounted items/vouchers which means that R2000 become an effective R3334. Then there are other benefits like free lounge visits at airports, avis free point-2-point, R100 Kauai voucher each month, FNB on the wimpy voucher, 500MB data free on the FNB sim ect. I use most of those benefits, its insane to turn it down...if you spend enough each month on your card. #4 Will ebucks benefit me? You will need to make changes to your payments to make ebucks benefit you. EFTs count for 0 ebucks. You need at least 3-4 debit orders on your account to help you gain reward levels, so I would keep those as is mostly. Municipal account, instead of EFT, I would pay into the account using credit card. Even if you pay part of it, and let the co-owner pay the other part whichever way he want, or EFT to you and let you pay with card. Fuel, keep as is on card. Paypal, keep as is, its online spend. Airtime, buy with card at a retailer or online. I do online. Electricity is easy to buy online, even possible on snapscan app now, which is what I use, its conveniant. That said, its difficult to say without actual values. Anyways, you need to do some homework to really know. I do this once a year, takes me 30 minutes then I am done for the year. Thats quicker than my e-filing takes. Read through the rules on: https://www.ebucks.com/web/eBucks/earn/fnb-gold-2019.jsp or https://www.ebucks.com/web/eBucks/earn/fnb-premier-2019.jsp Then use the calculator to work out what you can do to get to level 5 and then what you can earn with your expenses: https://www.ebucks.com/web/calculator/rewardsCalculatorAction.do At a minimum, play with the calculator. Hope that helps.
  33. 2 points
    Didn't think about that... ok fine, you'll do
  34. 2 points
    Ouch, that's 2 against 1
  35. 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.
  36. 2 points
    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!
  37. 2 points
    We actually wrote an article about this a few months ago. https://platinumwealth.co.za/insights/finance/building-an-emergency-fund/ One thing I would add is to look at Tymebank (we have them online if you have questions @TymeBank Team) If you use them as an emergency fund you will be earning more interest than any other bank in South Africa. With that said, personally, I do a 32-day notice account + credit card (if the funds need to be accessed right now) and then can be paid back from the notice account.
  38. 2 points
    Just registered and I must say,I am impressed with their steps of registering.so thank you Tyme Bank.
  39. 2 points
    Any business with a concern about efficient and costs effective telecommunications should investigate porting over to a VOIP solution. If you have a reliable internet connection such as ADSL/VDSL, 3G/4G or Fibre, you can get a phone service delivered through your internet connection at a fraction of the cost compared to using a traditional Telkom landline. The most important takeaway from this article is that a VoIP system reduce costs, dramatically. Why will a VoIP system reduce my costs of my Telkom bill? A VoIP service provider does not require its own separate infrastructure like the PSTN of Telkom. Voice calls are simply transmitted over the same networks that power the Internet. This means that the ISP does not have to invest significant capital in laying phone lines to each and every house and business. VoIP is essentially piggybacking on the existing broadband network throughout South Africa. So, voice is treated exactly the same as normal data and media such as text and images on the Internet (like a Whatsapp). Just like sending email and pictures is practically free, voice calls also become extremely cheap. Can I move my telephone number if we change offices? Anyone who has moved a landline from one home to another knows the pain of dealing with Telkom. With VoIP, the phone number is no longer associated with a single device, residence or physical line, instead the VoIP phone number is associated with you and your account. This enables you to take the number with anywhere you go, and you can even use it to link your cell phone to your business or office – it’s a virtual number. Who is the cheapest VoIP provider in South Africa for my business? Skype has three packages For R57 per month you get 100 minutes to any South African mobile or landline number (effectively R 0.57 per minute) For R99 per month you get 400 minutes to any South African mobile or landline number (effectively R 0.24 per minute.) Then for R285 per month you get unlimited calls to any network and landline. Vox Telecom Costs between R234 and R762 per month and calls are charged at R0.46 per minute. (The monthly payment includes money for the calls.) FreshPHONE Zero sign up costs, Zero monthly costs, Zero cancellation costs. The call rates for FreshPHONE is R0.39 per min to Telkom local and national numbers and R0.69 per min to all cellular networks. MWEB Mweb have two VOIP packages a Starter package with 100 minutes at R59 per month, and a Lite package with 250 minutes at R99 per month. (59c per minute and 39.6c per minute respectively) Assuming you want a more business specific setup (multiple staff members or a call center) then a PBX system will be required. The cheapest hosted PBX solutions in South Africa IS (Internet Solutions) Ignite have a hosted PBX solution for R111 per extension (month to month) or R90 per extension (24 month contract) this gives you Ring groups, Voicemail to email, Call waiting (press 1 for sales) the full monty) and then you have to pay the per minute rates for calls you make which is R0.30 to Telkom landline calls and R0.74 to mobile numbers. Euphoria Telecom is R65 – R125 per user(extension) per month depending on features. Then their call rates are R0.34 per min to Telkom landlines and R0.79 per min to all South African mobile networks. Use VoIP for your startup business Launching your own business is not an easy task. Entrepreneurs soon find that their landline is not enough to handle the needs of the business, no matter how small. This is where VoIP comes in handy. VoIP service can provide much-needed features like auto attendant, group voicemail, multi device ring, automatic call routing etc. which normally requires an expensive building specific business line(s) setup with golden numbers and special hunting group landlines.
  40. 2 points
    ABSA gives you access to all the ETFs. Their platform is a full on trading platform where you specify the price you'd wish to buy at etc. More control but more involved than EE.
  41. 2 points
    I own unit trusts only in the form of pension and RAs. RA - Allan Gray Balanced Fund Pension - 10X Kicked Stanlib to the curb but it had more to do with getting away from my financial advisors hold on it. Didn't understand their pricing at all. Very happy with what I have currently
  42. 2 points
    So regarding the new NewFunds Volatility Managed ETFs (I might be a bit late to the party): NFEDEF - Defensive http://etfcib.absa.co.za/products/Exchange Traded Funds/equity/VolatilityManagedDefensiveEquityETF/Pages/default.aspx NFEMOD - Moderate Equity http://etfcib.absa.co.za/products/Exchange Traded Funds/equity/VolatilityManagedModerateEquityETF/Pages/default.aspx NFEHGE - High Growth Equity http://etfcib.absa.co.za/products/Exchange Traded Funds/equity/VolatilityManagedHighGrowthEquityETF/Pages/default.aspx Sounds "cool" but looking at the annualised returns over 5 years (NFEDEF: 5.1%, NFEMOD: 6.8%, NFEHGE: 6.2%) I have to ask myself why I wouldn't play it save with a 32 day account at 6.95% or any of the various other guaranteed return vehicles offering better returns ?
  43. 2 points
    Opened mine on the 19th of November and moved my R1,500 to a Goal Save account. Started at 6% interest and then moved to 7%. Waiting for the 19th of this month and then I should be on 9%. Not sure what happens when I deposit more money into that account (if the interest rate resets, carries on at 9% or if there is some other mechanism keeping track of deposits and their respective interest rates). Do I trust them with my money? Well... I guess. Not planning to put to large a percentage of my money there but 9-10% interest beats almost everything out there. It even makes you wonder if it is worth buying Solar panels via FedGroup
  44. 2 points
    I'll monitor the thread just in case you open a JHB North branch
  45. 2 points
    Assuming you mean this: https://www.bloomberg.com/markets/watchlist There is a pie diagram at the top. You can click on it (the center or outer segments) to either drill down or up one level. Below it you'll see a couple of tabs defaulted to "Summary". If you click on the "Edit" one you can add a new lot with the date and price (in cents).
  46. 2 points
    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!!!
  47. 2 points
    Bird Box 6/10 Nothing particularly wrong, but they could have done so much more. The trailer is somewhat misleading with regards to time line.
  48. 2 points
    TymeCoach lets you see your credit score for free.
  49. 2 points
    Weakening economic conditions, increased debt repayment burden, rising consumer inflation and stricter lending criteria have seen 100% bonds, especially to first-time buyers, become much harder to get, but it has also placed many potential buyers firmly between a rock and a hard place. “Not only do banks require bigger deposits than before, it has also become more difficult to put money aside in today’s economic climate, as growing financial pressure is forcing consumers to tighten belts even further just to make ends meet,” says JP van der Bergh, founder of Propscan. "However, a sizeable deposit has several significant benefits in addition to increasing your chance of bond approval - it also gives you a jumpstart on the financial process, makes your offer more appealing to sellers as it bumps up the chance of bond approval, naturally decreases your monthly bond repayments, and saves you a considerable amount in interest over the long term.” Kay Geldenhuys from ooba, national mortgage originator, illustrates how a deposit can reduce the overall and monthly costs of buying property: “A home buyer who purchases a house for R1 million with no deposit at a 10.25% interest rate will pay approximately R9 816 per month over 20 years. At the end of the home loan term, the total amount repaid will be R2 355 944. “On the other hand, with a R100 000 deposit, the monthly repayments will be approximately R8 835, and the total repayment will be around R2 120 350. Add the deposit to this and the total comes to R2 220 350 - making the total repayments some R135 594 cheaper than buying without a deposit.” She says it also stands to reason that the smaller the risk for the bank, the more negotiable they will be on the interest rate charged. “Right from the beginning of the home-buying process, it is important to ensure that you know what you can afford to buy and how much deposit you will need,” says Van der Bergh. “Once you have established how much you need to save, the next step is to figure out how to do so as quickly as possible, and in order to do so, you must analyse your spending habits. On a spreadsheet, list all your fixed monthly expenses including existing debts you are currently servicing and make a note of all other regular expenses like the daily cappuccino at the café near work. “Next, go through it with a fine-tooth comb to see where you can cut down on monthly expenditure and determine how much you can realistically afford to save, and then shop around for a high-interest savings or money market account in which to save your money.” Sandy Geffen, Executive Director of Lew Geffen Sotheby’s International Realty in South Africa, says saving a substantial amount of money may seem like a daunting task, but don’t be discouraged. “At first glance, the cutbacks you are able to make may seem to be small amounts, but you will be surprised at how quickly they can add up to a sizeable sum, and you could own your first home sooner than you think,” says Geffen. She offers the following creative tips for saving towards your deposit: 1. Stop smoking. This could add at least R1 000 a month to your deposit fund. 2. Instead of buying takeaways every day, rather spend the extra 10 minutes packing lunch in the morning as it will end up saving you more than pennies at the end of the day, and it’s far healthier. 3. Ask for an insurance re-evaluation because while your insurance premiums probably go up every year, the value of a lot of insured items actually goes down as they age. 4. Cut back on credit and try to pay off and close store cards, especially if you find temptation hard to resist. Remember that when you do eventually apply for a loan, the bank will ask for an income and expenditure statement to prove that you will have sufficient surplus income for the home loan instalment once all household and contractual debt expenses have been met. 5. Before you run out to buy a new seasonal wardrobe, spring clean your closet and unearth the older items of good quality that can be reinvented with accessories or by mixing and matching; 6. If you can’t remember what the inside of your gym looks like and can’t motivate yourself to go, cancel that gym contract and find ways to exercise for free. It might help you to start exercising more regularly, especially now that summer is here. 7. Consider scaling down on your car if a large portion of your monthly income is going towards paying off a car loan; 8. Always go grocery shopping with a list and stick to it - and never go on an empty stomach. Also try and stick to food stores and avoid the hypermarkets where you might be tempted to buy other things you don’t need. Geldenhuys cautions that this savings mindset should not be abandoned once the goal has been met. “Many people throw caution to the wind and shop around for a home that costs the maximum amount the bank has approved, however, given current economic conditions, buyers should rather consider buying for a little less,” says Geldenhuys. “The extra cash can be used to pay off the bond more quickly or saved as a rainy-day fund so that they are prepared for the unforeseen expenses which arise when you own property.” “It’s true that our parents had it much easier in that most were able to afford their first home long before the current average age of first-time buyers which has risen to 34, but what hasn’t changed is the investment value of owning a home,” says Van der Bergh. “It is also one of the most exciting and rewarding purchases you will ever make, so even though it may take a little longer, it’s always worth the effort.” Source: Property24
  50. 2 points
    Hi. Platinum Wealth asked me to comment on unit trusts vs ETFs. The first thing is that unit trusts can be managed actively eg. Allan Gray, or passively, eg. Sygnia Top40 Index Fund or Sygnia Skeleton Balanced 70 Fund. All ETFs are passively managed, tracking particular market indices. I will limit my comparison to passive unit trusts vs ETFs. In South Africa unit trusts are significantly more cost effective than ETFs - so a Top40 Index tracking unit trust is significantly cheaper than a Top40 Index tracking ETF. The reason is that to access a unit trusts you only have to pay the management fees and trading costs (all disclosed on fund fact sheets). That is it. If you do not use a financial advisor, that is all you pay. In fact, with Sygnia's index tracking unit trusts, if you want to invest via a retirement annuity or a tax free savings account, those charge nil administration fees. In terms of ETFs you have to pay multiple layers of fees before you can actually access an ETF. The reason is that ETFs are both unit trusts and "shares" listed on the JSE. Some of these fees are: - Stockbroking fees every time you buy or sell an ETF (you have to use a stockbroker) - JSE trading costs relating to ETFs themselves - Management fees within the ETFs - Bid/offer spreads between buy prices and sell prices (This is the most disingenuous aspect of ETFs - the price of an ETF at a point in time is subject to supply and demand by investors, like any other share. So you might be paying more for the ETF than the value of the underlying "index" shares it holds, and when you sell you might be selling for less than the "index" shares are worth. In South Africa, where liquidity is poor, the market maker normally steps in. A market maker makes his money from the bid/offer spreads. So realistically 1% to 3% spreads are common). - If you want to invest via debit order, you are normally sold an "investment plan" by a platform like etfSA or iTransact. That is another 0.70% pa fee plus R3.50 per month debit order fee. - If you want a savings product, like a retirement annuity, that costs another 0.50% pa plus. So once you have added all the costs of accessing ETFs you are paying more than you would for an actively managed unit trust. That is what the ETF providers are skirting around all the time. Since Sygnia always does things differently, we plan to launch ETFs later this year where we charge nil stockbroking and we guarantee a minimum bid/offer spread. Let's see if we can shake things up a bit. But frankly, even with best intentions, I don't think our ETFs will be as cheap as our unit trusts tracking the same market indices. The final comment is that ETFs are asset class specific e.g. equities, bonds. Sygnia Skeleton Funds on the other hand mix asset classes together in sensible proportions for different risk profiles. So by holding one index tracking investment you get exposure to both domestic and International equities and bonds. Hope this helps. If you have any questions, I will answer them. Magda Wierzycka CEO Sygnia
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