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SaurusDNA

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SaurusDNA last won the day on January 18

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About SaurusDNA

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  1. This is really very nice. However, if you want to make it even better, there is one problem that most people have with home loan calculators (that as far as I know not a single home loan calculator on the internet takes into account), and that is the monthly fee on the home loan. This is NEVER taken into account, although we almost all pay it. I pay R57.50 service fee every month on my home loan, and when I put my actual monthly payment into the calculator, it doesn't take this into account, so the results never balance with reality.
  2. An alternative would be to buy the FirstRand US Dollar Custodian Certificates ETF (DCCUSD). As far as I understand it, it buys US treasury bonds in Dollars and settles them (as well as the interest) in Rands, so you get the full effect of the fluctuation in the exchange rate on all your money plus the additional interest on bonds, making it slightly more lucrative than investing in the actual dollar.There is an article on it on JustOneLap: https://justonelap.com/etf-understanding-dccusd/
  3. Okay - since the minimum purchase of NFGOVI is R250, I'm going to start with a bigger base and have a smaller multiplier. Base: R250 Multiplier: 0.5 Total for year: R9750
  4. Yes, I'm doing my monthly R2750 to TFIA and then a flat monthly rate to non-TFIA ETFs and shares. But I'll play the game then with something small. Thinking of buying NFGOVI as the savings tool rather than a bank account, since it's returning around 10% in yields at the moment.
  5. I'm trying to improve the formula a little. The difference between the first and last months is just too big.
  6. Well, some "big dividends" for PTXTEN came in today - a special final dividend payout up until the date it changed to CSPROP it seems. And this one is substantially larger than last month's payout!
  7. So as from today, PTXTEN is no more! It is now called Coreshares SA Property Income ETF and has the code CSPROP.
  8. I miss the old Bloomberg watchlist.
  9. If I had to do a simple long term low-maintenance portfolio for my child, I'd probably do: Local (40%): 20% STX40 20% SMART Offshore: (40%) 40% ASHGEQ Property: (20%) PTXTEN 20%
  10. Problem is, in a TFIA, there are no tax savings in offshore ETFs except capital gains...
  11. Here are the main differences between a TFIA and an RA: Tax savings: TFIA - pay tax now (TFIA savings is paid for out of after-tax income) - save a ton of tax later. RA - All tax gets refunded now, but you pay tax on your income when you retire. (You should use the annual tax refund for retirement savings too.) Availability of money: TFIA - Can be withdrawn without penalties, but then you can't put the money back. RA - Practically, you can't withdraw anything until retirement without severe consequences. TFIA - Gives a lump sum on withdrawal. RA - Pays a monthly income after retirement. TFIA - You manage your own money. RA - Your money is managed by a fund manager. So all in all - it's best to have both an RA and a TFIA. As Bandit says, it's nice to have the government fund a huge chunk of your retirement now, but then you also want to reap the benefits of a tax-free income after retirement too.
  12. 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.
  13. Oh, another thing - with RA's, starting young is huge, due to the power of compound interest. A 21-year old who invests R1000 into an RA for 10 years (until age 31) and then never contributes another cent again, will earn more at retirement than someone who starts at age 31 and pays R1000 for 34 years until age 65. Such is the power of compound interest. Thus, start as soon as possible with your RA!!!
  14. 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.
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