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Posts posted by Bandit

  1. 11 minutes ago, SaurusDNA said:


    Problem is, in a TFIA, there are no tax savings in offshore ETFs except capital gains...   😪


    "Trace" amounts, surely. I don't think we're losing out that much at all. Those offshore ETFs paying dividends etc have crappy payouts anyway. 

  2. 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). 

    • Like 1

  3. 18 hours ago, Spreadsheet Ranger said:

    Thank you for both responses. Does 10x or Sygnia offer Pension Funds how are they different to an RA? 


    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:

    1. Take the Pension money and move it into an RA
    2. Move the pension money to your new employer's pension fund
    3. Take the money and run (you'll pay tax on it)
    4. 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.

    • Like 2

  4. 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:

    1. Get insurance
    2. Settle debt
    3. Secure retirement
    4. 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...

    • Like 1

  5. 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.

    • Like 1

  6. 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.





    • Like 1

  7. 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?)

    • Like 1

  8. Still the same, the only difference being that Vodacom hiked the prices. About R270 pm and I get something like R350 funds on the account. I buy data with it, the rest goes to phone calls. Still have about R800 extra on my account which is a good indication that I can go even cheaper, which I will. Contract is about to expire but the iPhone 8 is still going strong.



  9. Yeah, not convinced GLODIV for a TFSA. In fact you raise a good point about the offshore ETFs. All the REITs and dividends that get paid out will be taxed there. So either go for capital growth or local dividend paying funds.


    PTXTEN is a done deal (I moved the CSP500 to it this morning).

  10. 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 :D

    • Like 2
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