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Bandit

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Posts posted by Bandit


  1. 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.


  2. 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)

     

    Lessons:

    • 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

  3. 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
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  4. 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:

    ETFRHO

    DCX10

     


  5. 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

  6. 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.


  7. 10 hours ago, SaurusDNA said:

    You own the shares, whether high or low. You only make a loss if you sell low.

     

    Yeah, too late to sell now. If you're still in you've made your bet and best to ride it out.

     

    I do wish I paid more attention (the curse of passive investing) else I would've cashed out earlier and bought government bonds. By the time I woke up it was already inflated.


  8. How are your friends on the JSE treating you? Encouraging you to buy and taking all your money or telling you to stay out and let the whole thing burn first.


  9. So an update - when the markets started crashing again I cashed out everything I could (TFSA, other ETF portfolios etc). It may not be the smartest move but given that I don't do this professionally, don't watch the markets all day, use 15 min delayed pricing and have the exact opposite type of people also trying to take my money I thought it best. Let stuff settle and then we'll get back in even if it means losing out a bit.

     

    What I could not do anything about is my RA. Luckily I cashed out my pension recently when I changed jobs, but to tell Allan Gray to convert my entire RA to cash would probably mean filling out a form, emailing it, make a follow up telephone call etc. if it is even an option.

     

    Net result - my RA is down 16%. It is a lost cause, by far the worst investment I ever made and I'm sitting here wondering if it is even worth it to continue with it. I'm confident I can make up 16% by myself when the time is right using offshore bonds, ETFs etc. but to get an RA with 70% SA shares to to recover by 16% - sounds like a long drawn out and "be patient" affair.

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