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Showing content with the highest reputation since 10/11/2019 in Posts

  1. 2 points
    It's hard to know which local ETFs are best to invest in. At least with the offshore ones, ASHGEQ or STXWDM are no-brainers and either of them serves as excellent all-rounders. But locally, we don't get "All-rounders" of the same quality. Your Top40 and Top50 ETFs are market capped and you end up having 70% of your money in four or five shares, which is certainly not great. Then, there are the myriad of smart beta ETFs, each claiming to have a better methodology than the rest, but all untested. So for now, with my local ETFs, I have one third of my local portion of my TFIA in the new multi-factor SMART, one third in the momentum methodology NFEMOM and a third in quality shares with great fundamentals (STXQUA). But if you had to choose just one (or two) local ETFs, what would it be and why?
  2. 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.
  3. 2 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: URL to be confirmed OneDayOnly: URL to be confirmed Makro: URL to be confirmed MTN: URL to be confirmed CellC: URL to be confirmed Pick n Pay: https://www.pnp.co.za/blackfriday HiFi Corporation: URL to be confirmed Checkers: URL to be confirmed BidorBuy: @Bandit you'll post the link here first right? Cybercellar: URL to be confirmed Game: URL to be confirmed Dion Wired: URL to be confirmed
  4. 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.
  5. 1 point
    Different approach: if you think local think emerging markets. Rather invest in STXEMG instead of a local ETF. There is a discussion somewhere on the forum on the correlation between local vs emerging market index.
  6. 1 point
  7. 1 point
    Benefit of a TFIA if you start it early enough is that although your contribution limits are low the years it has to grow in value will result in quite a sum of money. Chances are that those limits will increase a couple of times more in the coming decades before you retire. Once you reach retirement (or have enough funds in your TFIA) you can use it to buy income generating funds which will provide you with additional income (tax free).
  8. 1 point
    For RA's, I'd go for a company like Allan Gray or Alexander Forbes. Companies like Old Mutual , Sanlam and Liberty Life are also reputable, but their fees tend to be higher and their returns lower in my experience (although you should do some research first to verify the facts.) I think Bandit has hit on something very, very important. If you see a financial adviser, the first thing they will try and do is sell you life insurance, because the commission on that is huge compared to the commission on an RA. Don't give in - tell them you want an RA and nothing else at this stage.
  9. 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...
  10. 1 point
    But in all seriousness - if you had ASHGEQ and SMART you probably have a better portfolio than most other people out there. Can't go wrong with that combination for a strong investment foundation.
  11. 1 point
    Locally it would have to be SMART (sensible choice) and ETFRHO (for now...because it is flying). I'm up 150% with ETFTHO (kicking myself I didn't have the foresight to push my entire life savings into it ) but it can't continue like this forever.
  12. 1 point
    Yes, it is definitely worth getting an RA! An RA works as follows: - You pay a monthly investment premium not exceeding 15% of your income (or you lose some tax benefits). -The premium is invested in actively managed funds (similar to units trusts) on your behalf by the finance house. - When you do your tax return each year, SARS refunds all the tax paid on the amount you invested during the tax year for your RA. (In other words, since you will not be relying on a state pension later, SARS will waive the tax now of any money earned that you invest in an RA as an incentive). - You cannot withdraw the money until retirement age. (Well, theoretically you can draw the money before retirement but there are extremely heavy penalties plus you have to pay back all the tax you ever got refunded, leaving you with very little). - The money is untouchable by anyone, even if you go insolvent - it will be there when you retire. On retirement, you have two choices (or you can split your money into these two options according to the percentage you choose): 1) You can buy a life annuity from the insurance company with your money (or part of your money). This means you pay a once-off premium (a percentage of your RA savings) for a guaranteed salary (plus inflation-related annual increases) for the rest of your life. You will receive a guaranteed salary until the day you die, irrespective of the age that you die. After you die, you don't get any of your capital back from the money spent on this option. 2) You can invest in a living annuity with your money (or part of your money). This means that the capital is invested and you take a certain earnings from the investment each month. Your salary is not guaranteed, but varies according to the market. This option pays a higher monthly retirement salary, but at some age, if you live longer than estimated, the money may run out (since you draw a little of the capital each month). If you die earlier than expected, the remaining capital forms part of your estate. Most people do a mix of the two - for example, use half their RA to make sure they are supported until death, and the other half to live the good life until, say 80 years old.
  13. 1 point
    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
  14. 1 point
    I was happily surprised by SMART's distribution. It's the first time SMART has distributed (being a new ETF) and it was way better than I expected at 44c per share.
  15. 1 point
    Happy dividend day! It's not a lot, but there's something magical about money just appearing in your account
  16. 1 point
    I've been doing some research and I may be wrong. From what I have gathered, an ETN basically backs or works with commodities traded (correct?). Since people have said that Bitcoin is more like a commodity, do you think it's possible to have an ETN that is linked to the price of Bitcoin or other cryptos?
  17. 1 point
    I don't think I'd sell my CTOP50 or STXDIV if I were you. Property is a different asset class and its behaviour is (theoretically) uncorrelated to equities, and ideally you should have both equities and property. If I were you, I'd keep what you have and buy PTXTEN from scratch. Also, like Bandit suggested, you should throw some offshore equities into the mix as well.
  18. 1 point
    Depends on why you want to switch. If you believe in property shares then sure, if it's only because the other's are down then ask why you invested in them in the first place. PTXTEN isn't exactly having a great run. Might better to just leave it as is and start funding an offshore ETF like ASHGEQ (or sell those two and push it all into ASHGEQ and start funding PTXTEN on the side?)
  19. 1 point
    I've currently got: Inside TFIA: SMART: 12% NFEMOM: 12% STXQUA: 12% PTXTEN: 24% ASHGEQ: 20% STXEMG: 10% SYG4IR: 10% Outside TFIA: GLODIV: 33% GLPROP: 33% STXNDQ: 33%
  20. 1 point
    So I ended up doing this: PTXTEN 16% ETFGRE 18% STXWDM 41% ETF5IT 25%
  21. 1 point
    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!
  22. 1 point
    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.
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