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SaurusDNA

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SaurusDNA last won the day on September 20

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  1. Even though it's only until 20 September, most of them on that list will probably do it for you for free anytime. It's how many conveyancers get new clients
  2. Coincidentally, this week is National Wills Week (or "Free will" week) at many participating attorneys in South Africa. A list of participating attorneys who will do your will for free can be found on the website of the "Law Society of South Africa" https://www.lssa.org.za/our-initiatives/advocacy/national-wills-week But many other attorneys who didn't send their names through will still do it for you.
  3. No - basically the executor will consolidate your estate (ie. he/she will get an attorney to search for all your accounts and policies using your ID number) and will combine these into a trust account. Then your will will say how to divide the total. No need to specify details. You can usually just say "30% to X and 70% to Y" unless, of course, you have personal items that you want to go to someone in particular, then you can specify those. Many attorneys (conveyancers in particular) will actually do a will for free without expecting anything in return. They may just suggest that " One day if you sell your house you can nominate me as the transferring attorney" or something along those lines. Most people will feel loyalty towards that particular attorney because they do/regularly update your will for free. In essence, you can actually do your will yourself, but it will only be valid at the Masters office (when it is executed) if it complies to all the procedural rules. These include stuff like that the witnesses must be identified in the will and be traceable and other technicalities like this, since there is a lot of scope for fraud with wills (because there are usually many versions of a will and only the most recent one applies, so the Master has to verify that you actually did the will.) If anybody contests the will, the witnesses must be traceable and swear that they signed the will etc. This is to protect the rights of the deceased. Thus it is in your best interest to contact an attorney.Tell them you want to appoint family members as executors. It should usually cost you anything between free (minimum) and R1000 maximum.
  4. The problem with banks or professionals is that they do your will for free, but then they make themselves the executor of the estate and take a hefty chunk of your estate after you die. Much better to pay an attorney a once-off fee for doing the will (it's usually about R1000 at most) and then make two trusted family members the executors. Then everything goes to the beneficiaries - the way it should be, with no fees for administering the will.
  5. Yes, 25% of my own TFIA account is PTXTEN. Of course, this only applies to local property, as foreign property ETFs (such as GLPROP) have almost no tax savings (other than capital gains). My GLPROP is outside my TFIA at the moment. As you have suggested, it's still prudent to be diversified elsewhere. Pretty much, for me, my local ETFs are in my TFIA and my foreign ones outside of it.
  6. That is 100% correct. In decreasing order of tax benefit within a TFIA: Local property ETFs Main source of income: 1. Interest: Tax Free 2. Dividends: Tax Free 3. Capital Gains: Tax Free Tax savings: Very High Local high-dividend, lower-growth equities ETFs Main source of income: 1. Dividends (large): Tax Free 2. Capital Gains: Tax Free Tax savings: High Local high-growth equities ETFs Main source of income: 1. Capital Gains: Tax Free 2. Dividends (small): Tax Free Tax savings: High Foreign high-growth equities ETFs Main source of income: 1. Capital Gains: Tax Free 2. Dividends (small): Taxed Tax savings: Medium Foreign high-dividend, lower-growth equities ETFs Main source of income: 1. Dividends (large): Taxed 2. Capital Gains: Tax Free Tax savings: Medium to Low Foreign property ETFs Main source of income: 1. Interest: Taxed 2. Dividends: Taxed 3. Capital Gains: Tax Free Tax savings: Low
  7. Timing the market is near impossible. The Rand could go up or down, and the index could go up or down. There are two trains of thought:- the momentum methodology (employed by ETFs like NFEMOM, for example) is based on the premise that shares that are going up strongly will continue to go up. The momentum methodology says now is an excellent time to buy. On the other hand, the value methodology (employed by ETFs like NFEVAL for example) say you should buy when prices are cheap. This methodology says you should wait. I personally do Dollar-cost averaging by buying an equal amount monthly. This way, you get the best of both worlds. It might be something for you to consider (ie. buy R2k per month for three months). This way, whatever happens, you minimize downside risk. But otherwise, as for your question, with all short-term decisions in the market, you may as well roll a dice.
  8. For local ETFs, capital gains, distributions (dividends) and REIT income is tax free. For foreign ETFs, capital gains are tax free, but distributions (dividends) and REIT income is taxed by that country, so the only tax benefit to us within a TFIA is on capital gains. Thus, in order of tax benefits in a TFIA (from biggest to smallest): Local property ETFs have the biggest tax saving Local income ETFs (high dividends) Local equities Foreign equities Foreign income ETFs (high dividends) Foreign property ETFs have the lease tax benefit
  9. The 70% equities, 20% property and 10% interest bearing is the classic split. But yes, I suppose 10% dividends would make it 80% equities. But there's certainly nothing wrong with 80% equities! I'm torn between STX40 and SMART. I really like a 50/50 split between these two. PTXTEN is now merging with PTXSPY to create a new ETF (tentatively coming into effect from end July 2019). The new one is pretty much the same index as the Satrix STXPRO. Coreshares has promised to lower the relatively high TER with the merge (probably to compete with STXPRO). But you may as well flip a coin here between PTXTEN or STXPRO or watch the TERs once the new Coreshares ETF has settled in. For the dividend ETF, both DIVTRX and STXDIV are decent choices. DIVTRX targets more consistent yields in the longer term whereas STXDIV targets higher yields in the shorter term. And then again, although STXQUA is not strictly a dividend ETF, it's dividends are usually excellent. In my opinion, STXEMG has the most long term potential (although high risk), possibly even more so than tech shares. If you have a bit of appetite for risk, why not do 10% STXEMG, and then leave the ASHGEQ and go for STXWDM and/or S&P500. GLODIV has been doing really well lately and is likely to continue. Not so great in a TFIA though as the unpleasantly high foreign withholding tax on dividends negates a large chunk of the tax benefits though, but it still does have excellent capital gains, so maybe still even worth having in a TFIA. I personally like having a bit of a mix in my ETF portfolio. If I were you, I'd mix it up a little and make it a bit more exciting. What about something like: Local equities: 20% STX40 and 20% SMART Local property: 20% PTXTEN Emerging markets: 10% STXEMG Offshore: 15% CSP500 and 15% STXWDM (or alternatively 10% CSP500, 10% STXWDM and 10% GLODIV) Or if you don't like STXEMG but prefer slightly less emerging markets exposure, but still want some: Local equities: 20% STX40 and 20% SMART Local property: 20% PTXTEN Local dividends: 10% DIVTRX Offshore: 30% ASHGEQ
  10. Regarding the mix between global and local shares, let's look at 1) three scenarios regarding the economy, and 2) your personal circumstances: Scenario 1: SA economy collapses: Offshore will do much better - you should have 100% offshore. Scenario 2: SA economy grows, but the Rand plummets: You should have a mix of local and offshore shares - offshore to take advantage of the exchange rate, and local shares because these should still outperform offshore shares due to higher growth. Scenario 3: SA economy grows and Rand does not plummet: Local shares should outperform offshore in every way. Thus, ideally, one should have a mix of local and offshore investments to account for every scenario. That being said, as Bandit has already mentioned, you already have a provident fund with 70% local and 30% offshore. When deciding on your split, you should take the size of your provident fund and your ETFs into account. To summarize: If you have a large provident fund, and small ETF investment: Do what Bandit says and put everything into offshore. If you have a small provident fund (started working for a company late in life) and have a large ETF investment, then go for the 50/50 split of local and offshore. I fall into the latter of these, so my circumstances are different to Bandit's. It's not that we see things differently; it's that our circumstances in life are different.
  11. I would recommend going for broad-based market exposure - not specialized or sector ETFs. For local exposure, my choice would be any one of the following: Satrix Top 40: STX40 (Pure market-cap top 40 index) Coreshares Capped Top 50: CTOP50 (Market-cap top 50 index but capped at 10% for any one share) Coreshares Smart Beta multi-factor: SMART (Smart Beta equally weighted over 6 factors) For offshore, I'd go for either: Satrix World MSCI: STXWDM (Well-diversified global exposure to developed markets) Ashburton Global 1200: ASHGEQ (Well-diversified global exposure to developed markets with some emerging market exposure as well) I understand why Bandit prefers mostly offshore exposure for people who have pension funds, as pension funds typically only have 30% offshore and 70% local (although most of the Top40 local companies have offshore interests included in their portfolios, so it's actually a bit higher than 30%). Thus, global ETFs provide Rand hedge protection and diversification against a possible collapse of the RSA economy. However, I still personally prefer at least half my money in local ETFs because the high inflation in RSA means higher growth locally than global shares. If the Rand plummets, offshore shares will shine and strictly South African shares will be largely unaffected. If the Rand stays okay, then local shares should outshine offshore shares due to the higher growth. If I had to buy only two ETFs, based on what you said in your post, my personal choice would be: Coreshares SMART or Satrix STX40: 50% Satrix global STXWDM: 50% Then, when you're ready to go for a third ETF, I'd add some property (a totally different asset class) - either Satrix STXPRO or Coreshares PTXTEN, ultimately aiming for: Coreshares SMART or Satrix STX40: 40% Satrix global STXWDM: 40% Satrix STXPRO or Coreshares PTXTEN: 20% (Disclaimer: Of the ETFs mentioned in this post, I own SMART, ASHGEQ and PTXTEN)
  12. What a nightmare! The old SARS website was perfect. The new one just doesn't work. Firstly, it doesn't save the return correctly. If you save part of the form, it forgets what you've already done - it only saves the changes and forgets what you've done previously. Secondly, the "view calculation" doesn't work on any browser. Thirdly, the "Print" buttons are all broken. You get an error message after pressing print on anywhere on the website. There is no way to verify your calculations before submitting. After submitting, there is no sms, e-mail or anything to confirm that you've submitted. On the site, it says "filed" but there is no notice of assessment or anything. This new site is an absolute disaster. I've submitted my return and I have no idea whether or not it's been received in good form or not.
  13. I use Standard Bank Online Share Trading. They have the full house of everything you could wish for as a trader - from company research, expert analysis and opinions, fine-tunable stops, technical analysis, advanced graphing software etc. There admin fee is not cheap but it becomes free for the month if you make at least three trades in that month. Their cost structure is here: https://securities.standardbank.co.za/ost/ I use the Viewpoint Live Level 1 package and I'm extremely satisfied with it. (Remember that it's free after more than three trades per month.)
  14. Yes, firstly, don't overdo it with too many ETFs. Just pick a few core ones and stick with them. Otherwise you just end up with higher costs, duplication of stocks and possible over-exposure to certain stocks that is hard to control. Secondly, pick a good mix of local, international and property shares to spread your risk. If you want to stay with Satrix only, I'd recommend something like the following portfolio split: Satrix 40 (STX40) : 40% Satrix MSCI World (STXWDM) : 40% Satrix Property (STXPRO) : 20%
  15. I just recommended two books in a different thread, but I thought it might be a good idea to have a dedicated thread to discuss trading and investment books. I'll be back soon with book reviews on the ones I've read.
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