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PACT

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About PACT

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  1. Guys, thanks for the feedback and yes I am serious. I still have not received an answer to my original question. I take note of: FIXED DEPOSIT Dividend focussed ETFs: DIVTRX, STXDIV REIT focussed ETFs: PTXTEN, STPROP, PTXSPY, STXPRO BONDS Still I have no answer to my original question - Why is there no instrument dedicated to fixed income that contain, dividend shares (variable), fixed deposit (fixed for 30 days minimum), Reit (variable) and bonds (fixed for 3/5/10/20 years) in one single ETF? Surely this is not rocket science but it needs a fund manager especially to manage the variable components on a day to day basis. How hard can this be to run?? Maybe I should start such a fund and market it to the public. 1. Dividend shares - will need close management local and international + monitor costs of transferring funds off-shore and and..... 2. Fixed deposit - Every month find best 30 day deposit and move funds + monitor costs of transferring funds 3. REIT - will need close management local and international + monitor costs of transferring funds off-shore and and..... 4. Bonds - Well this one will be fixed for 3/5/10/20 years so not a biggy but need to give clients best value for money. 5. Do all this but keep fees at a minimum.
  2. All the options work out to R108 000 per 30 days!!!
  3. Or if you can't make R150 per hour for 24 hours per day, then what about: R300/hour for 12 hours per day for 30 days or R600/hour for 6 hours per day for 30 days or R1200/hour for 3 hours per day for 30 days.
  4. But why? Why a small fraction of the original investment? Who determined that we should only get a small fraction? Because we are sheep that are being told that and we never query anything. In my example above I mentioned that you get R640/month on a R100 000 investment. So I ask, who can beat that? Lets put that in perspective. Let's say I bought a portable car wash machine and it cost me R100 000. Do you think I would be able to wash 7 cars at R100 a car in a month of 30 days? I am sure I would, but that then makes the investment that pays R640 /R100 000 absolutely useless right, cause I can make R700 a month. On top of that I would be paying a fund manager to give me a dismal return. Wow, what a bunch of poor suckers the public is.
  5. Well lets look at that in real terms per month. House (R1000 000) = R10 000 Insurance on house = R2500 Municipality account = R2000 Car installment = R2500 Car insurance = R700 Petrol = R2000 Wow, no food yet and I am at R20 000 bring home pay required. So lets see. Work deducts tax, uif and medical. So I need to earn round R30 000 a month or more. So lets say you cover the "live on your salary" part, where must the "save the rest for retirement" part come from? I am not joking. This is real life. So what did I do? I started a second income working weekends and that part I want to invest in a place that will subsidies my income every month and that is why I asked the question that I started this forum topic with. Am I being unrealistic or are people just not asking the right questions? What I don't understand is that people are willing to save for their old day's, but right now they barely survive. In a nutshell, people are willing to suffer for 30 years so they can have money for the last 20 years of their life and on top of that, the medical aid that they pay R3000 per month for will cost them R10 000 per month in 20 years time.
  6. I am very serious. Show me an ETF that is geared to paying monthly income. When you retire, where do your monthly income come from? Your financial advisor invested your funds that you put away for 20 or 30 years and from that, income is derived for you to live off. So if they can do it then, why can't they do it now? As I see it, the only difference is the size of the amount that you have invested. So if they can pay you R6400 per month per million invested, why can't they pay it right now on whatever amount you have invested, or am I understanding your statement wrong and you talking about the R6400 per million that the people that I talked to said they were getting because that is peanuts.
  7. I am not an investment guru but read a heng of a lot about it. A while back Warren Buffet had his share holders powow and although I do not give it much interest, I did take 2 comments from him that makes absolute sense and I teach my kids this. Please, I might be wrong how I interpret this but this is how I see it. 1. He does not really invest in pie-in-the-sky items. He invests in items that are used by every day people, every day. I think that is why he has such a big stake in companies like Coca Cola. Would not surprise me if he had shares in some or other toilet paper company. It is stuff that are used everyday and as the population grows, the sales of those items will increase. Makes sense. 2. This one I really took to heart - " If you don't make money while you sleep, you will work till the day you die!!!" Now let's just give that some thought. Make money while you sleep, hmmmm. Well lets take the Coca Cola example again. If you had shares in such a company, while you sleep in South Africa, somebody on the other side of the world is buying a Coca Cola. So while you sleep, your company that you have shares in, is making money at the other side of the world! Makes absolute sense. And just to make it more interesting for my kids, I broke it down. I told them, they have to find a way of making R150, only R150 per hour, every hour of every day! So 24 hours in a day x R150 = R3600 R3600 x 30 days in a month = R108000 per month and then their eye's almost popped out. So now they on a hunt for something that will give them R150 every hour of every day, especially when they sleep!!
  8. I go from one financial website to the next to find an instrument, ideally an ETF, that will generate a monthly income. I don't need money in 30 years time. I need money now. I need to pay university fees and want to buy a house and and and.... (had to pay R8000 for a vehicle service yesterday!! - next year it will most probably be R10 000.) I'm willing to sacrifice on "living" for say up to 4 months, but then I want to start receiving a monthly income from that financial sacrifice. I know the options are dividends, especially in property shares as they must pay out a component of what they make every quarter. I know about bonds and of course fixed deposits at banks. What else is there? My question: Why is there not an ETF that include these items all in one place? Why can't I get income from an ETF every 3/4 months? Why must I hold for 30 years for retirement? What do the financial advisors think I should do in the meantime while I put away all my money for my old day? What should I then live on in the meantime while the cost-of-living is sky rocketing? PS: I spoke to people and was informed that right now, on an investment of 1 million rand, I can expect to get a monthly income of +- R6400. So on an investment of R100 000 I can expect to get R640 per month, right, R10 000 would give R64 and R1000=R6.40. So let me clarify that a bit more. I give my R1000 to a financial specialists for a period of 30 days and all he/she can give me is R6.40? Please, if these numbers are wrong, enlighten us because this is terrible.
  9. Answers: To number 1 - Yes it will get scrapped. No tax free bracket. If you breath air, you pay tax but since you will get tangible benefits from the tax you pay, you won't mind paying tax, will you? To number 2 - It would not be fair to me if I had to pay 20% tax on a loaf of bread. That is why I recommend a sliding scale. 5% tax on a loaf of bread but 50% tax on a luxury car seems fair, right? So the more you earn and the nicer things you can buy, the more VAT you pay. How is that not fair? To number 3 - Grants are gone. No grants. So if you have more kids than you can afford you suffer and the state won't help you. But since humans are humans, all anti pregnancy medicines are free and any operations like vasectomies are free. I would go as far as asking a pharmacological company to investigate the creation of a pill for men. Lets say one that if you drink it, it makes you sterile without side effects for 12 months. That way you can be like a rabbit but not have after effects. This research can be paid for by tax money!
  10. The bottom line is, whoever controls that area also controls the incomes and expenditures of that area. After all is that not what we voted for in the first place? Then why must my taxes end up in an opposition ministers pockets?
  11. In light of the crookery en stealing that is going on by government, I propose the the following tax structure: 1. Since Cape Town is a DA controlled city, all taxes paid by people living and trading (businesses, VAT....) in the Cape Town metropolitan area, should go to the DA to be utilized in that area. Cape Town tax payer money should not be used to pay for services delivered in another party's controlled area. The same goes for an ANC or other party controlled area. The winner get's the spoils of the area. 2. The taxes of an area must be utilized for the following purposes only: L-O-E-I-J L=Law. The government will make SENSIBLE laws. Every crime will have an appropriate punishment. Every area will have their own laws and punishments. If the Western Cape feels that they want to bring the death penalty back in and the voters of the Western Cape voted for that, then so it shall be. If they want their own police force, then so be it. O=Order. Any factor that would hinder any of the other 4 items in the manifesto. If not complied to, can lead to financial penalty or criminal punishment. Items like healthcare would also fall under this item. Basically anything that would hinder people from doing their day-to-day jobs would be covered under this item. E = Education. Not all people are clever enough to go to university. Thus technical and entrepreneurial schools will be implemented. All kinds of courses and lectures will be available through all kinds of mediums. I =Infrastructure. To grow a country you need infrastructure (roads, electricity) where business can start and factories be build. Includes any and all renewable energy resources for example. J=Jobs. Through the implementation of manifesto items 1 to 4 and some incentives, we get businesses back in an area and grow current businesses thus creating jobs. 3. To balance taxes out, VAT will be the major income of taxes but it will work on a sliding rule. The more expensive the item, the more VAT you pay. 4. TAX breaks/ tax incentives for new businesses. This of course will be monitored with strict rules and regulations to prevent misuse but to encourage new business and entrepreneurship. 5. Education will be free with in limits and will be payed for out of these taxes. Once again it will be monitored for any and all misuse but any person should be able to learn a skill. Add what you as a citizen feel should be included in a new tax system.
  12. The problem I have with all these apps, is that it does not give a full picture. What about transaction costs and other miscellaneous costs that are taken off your bank account monthly? What should the ideal app have. Well firstly, there is no way in hell I will connect my bank account to my cellphone permanently, BUT, what could work is getting something like a sms that automatically updates an app on my phone. So if I do a purchase instead of me entering the amount I spend, the transaction will update my app AND the costs involved with that transaction. Also if I do not spend my funds and I get interest on my funds in my account, I want to see it on my app. Man, I want to see it all, but not by having a permanent connection to my bank account that can be hacked. The bank must push it to me. I'm not spending money to go and get it. What will make people save? Seeing the interest on their money pop into their account daily! For the life of me I still can't figure out why nobody has that functionality. Ja I know because banks pay interest monthly. Bullshise! Show me the interest daily, not monthly! I don't care if it is 5 cents interest that I earn daily. Show it to me.
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