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Posts posted by Bandit

  1. 33 minutes ago, Below said:

    Thoughts? Sell off ASHGEQ, CTOP50, SYG4IR and STXNDQ at a profit (covering the costs) and reinventing it. 


    If it was profitable then yes, sell off and "reinvent" or keep the ones that you do not like/are duplicated and stop contributing to them.


    It helps if you theme your portfolio meaning: 80% offshore, 10% local, 10% property... or in your case 80% (50% developed markets, 20% emerging markets, 10% tech stocks), 10% local, 10% property. Get the "theme" right so you know what you want to do and then use the appropriate ETFs to do so.






  2. On 7/21/2020 at 5:12 PM, SaurusDNA said:

    I know Simon Brown always slams this one as just being popular rather than having actual merit


    He's probably right but who cares - it's making me money 😛

    • Like 1

  3. So let's see:


    TFSA +28%

    ETF5IT (42%)

    ASHGEQ (55%)

    STXEMG (3%)


    The growth here was helped by timing the crash and dip earlier this year and time.


    Portfolio #1 +8%

    SYGWD (27%)

    SYG4IR (42%)

    STXCHN (31%)


    Portfolio was started after the crash, so gains are partly due to the recovery (maybe?) and the recent growth we've seen over the last week.


    Portfolio #2 +77%

    ETFRHO (95%)

    DCX10 (5%)


    Ah yes, portfolio 2. Otherwise known as my **** around portfolio. Growth is largely from past performance of ETFRHO and it's been stuck in the +70 range for a while. I reckon the party is over but scared of capital gains.

    • Like 1

  4. Yes.


    FNB to Investec for a -0.5% lower rate.


    It's a slow process because of COVID and the deeds office shutting down every other day. Both banks have been ready to do the transfer for a while now.


    So, long story short:

    - some (all?) banks like FNB require you to give them advanced notice that you intend to settle the loan (3 months I think), so that's step one.

    - costs: It will be a repeat of the bond reg costs unless the attorney does it at a discount (so on a R1.5mil loan it's about R25-30k). These costs can be loaded onto the loan if you wish.

    - there is a cancellation fee at the current bank which is in the region of R5,000.


    For a better interest rate and/or bank and over long enough time it is worth it.




  5. On 6/7/2020 at 9:57 AM, Snot Boogie said:

    Hi all. Would you say it’s advisable to get life insurance products, if you currently do not have any dependents. Does the whole argument about getting it while you’re still young and healthy for lower premiums actually hold water?


    You'll want income, disability and severe illness cover regardless of how old you are. If something happens you want to be able to maintain your lifestyle. Life doesn't really care for your age or relationship status and after it's run a number on you and if you are still alive you'll want money.


    Life cover is for when you die (for the most part). Basically - make sure your debt is covered and nobody else gets stuck with it. If you have no family...well... yeah. It's not expensive though.

    • Like 1

  6. On 5/29/2020 at 1:54 PM, Spreadsheet Ranger said:

    What issues do you currently have with FNB?


    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.

    • Like 2

  7. 18 hours ago, Spreadsheet Ranger said:

    @Bandit what is your credit score and what percentage interest did you get?


    Uhm, no idea what my credit score was but it's good. Haven't checked in a long time but never missing a payment for over a decade does that.


    This was for a 100% loan so interest rates weren't as competitive, but I opted to rather put the deposit into the access facility.


    Told her I wanted FNB. So she went to ABSA, Standard Bank and Nedbank first. Nedbank responded with prime-0.15, ABSA with something like Prime+3 and Standard Bank somewhere in between. Then sent the Nedbank offer to FNB who immediately matched it. We didn't negotiate much further because of the 100% bond.


    Since then and with the interest rates that fell I moved to Investec and in the process of moving my bond to them as well. A bit early, have to pay bond attorneys again (although, Investec discount) and I get Prime-0.65% which means I'm now on 6.6%. Also move my vehicle finance to them at Prime-0.5%. So very happy. In the grand scheme of things the extra round of bond fees is not the worst and I just want to get away from FNB as a whole. Not advisable unless you've done the calculations and happy with the financial impact (you shouldn't be.... something wrong with me)



    • If you want to negotiate, put down a 20% deposit
    • Make sure you're happy with whomever gives you the loan because moving too soon is not cost effective

  8. 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... 🤣

    • Like 1
    • Thanks 1

  9. 19 hours ago, e4et said:

    What's your thoughts on Satrix World?



    I briefly cashed out everything and bought back in the dip (or rather, what I thought was the dip) which worked out pretty well for me. I've since reinvested everything in phases and not really looking at selling again. My point being that I think the major panic and stupidity is over and I am investing every month like always.


    As for the MSCI world: after I sold it I didn't buy it again. I prefer ASHGEQ.


    My holdings are:

    ASHGEQ (50%)

    ETF5IT (35%)

    SMART (15%)


    And on the side:




  10. On 4/11/2020 at 7:50 PM, Vessela said:

    PS:  one last thing - Do I need to open a tax free savings account with my bank as well, or in the Easy Equities one sufficient?


    You can open an account with Easy Equities, no need to use the bank's version.


    On 4/11/2020 at 7:50 PM, Vessela said:

    Do I even need to be worrying about this?  Do EE just send you a summary at the end of the year that you file with your tax return? As long as it's something I'm allowed to do, that's fine.

    PPS: We're just talking about a few thousand rand here.  Does it fall under the annual R40 000 CGT exemption?


    Once you sell equities (outside of a TFSA) it triggers a tax event. Which tax event depends on many things and if you can find a definitive answer I'd be really interested to know myself. The general "guideline" is that if you held the equities for three years or more the gains will count towards CGT (this is where the yearly exemption comes in) and if under three years it is seen as trading and taxed under Income Tax which means it is added to your annual income and you are taxed accordingly come filing season.


    However, ETFs (or most of them) fall under a category called a Collective Investment Scheme and from some sources I've read the selling of these are always considered CGT regardless of the time it was held.


    You'll need to ask a tax professional to clear this up for you. I generally do not worry too much about it. Come filing season Easy Equities will issue you an IT3 certificate and you'll use it to complete your tax return.

    • Like 1

  11. Ignoring additional costs of transferring money, if the Rand drops from R18.40 to R15.40 it is a loss of -16.67%.


    If your blue chips are going to grow by more than that in the short term it may be worth it. If it is long term and regular monthly/quarterly investments I personally wouldn't worry about it.

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