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SaurusDNA

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Everything posted by SaurusDNA

  1. Oh, that's also an idea!!!
  2. 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
  3. 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.
  4. I'm trying to improve the formula a little. The difference between the first and last months is just too big.
  5. 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!
  6. So as from today, PTXTEN is no more! It is now called Coreshares SA Property Income ETF and has the code CSPROP.
  7. I miss the old Bloomberg watchlist.
  8. 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%
  9. Problem is, in a TFIA, there are no tax savings in offshore ETFs except capital gains...
  10. 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 Availability of money: TFIA - Can be withdrawn without penalties, but then you can't put the money back.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.
  11. 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.
  12. 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!!!
  13. 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.
  14. SaurusDNA

    Local ETFs

    It's hard to know which local ETFs are best to invest in. At least with the offshore ones, ASHGEQ or STXWDM are no-brainers and either of them serves as excellent all-rounders. But locally, we don't get "All-rounders" of the same quality. Your Top40 and Top50 ETFs are market capped and you end up having 70% of your money in four or five shares, which is certainly not great. Then, there are the myriad of smart beta ETFs, each claiming to have a better methodology than the rest, but all untested. So for now, with my local ETFs, I have one third of my local portion of my TFIA in the new multi-factor SMART, one third in the momentum methodology NFEMOM and a third in quality shares with great fundamentals (STXQUA). But if you had to choose just one (or two) local ETFs, what would it be and why?
  15. I'm maintaining 24% of my TFIA in PTXTEN. Sometimes I feel it might be a bit much and that I should reduce it to 20%, but since the other 76% of my TFIA is all equities, I think it should be okay.
  16. I was happily surprised by SMART's distribution. It's the first time SMART has distributed (being a new ETF) and it was way better than I expected at 44c per share.
  17. I don't think I'd sell my CTOP50 or STXDIV if I were you. Property is a different asset class and its behaviour is (theoretically) uncorrelated to equities, and ideally you should have both equities and property. If I were you, I'd keep what you have and buy PTXTEN from scratch. Also, like Bandit suggested, you should throw some offshore equities into the mix as well.
  18. SInce the first few years' repayments is mainly all interest and no capital, the difference in monthly repayments between a 20 year loan and a 30 year loan is only around 8.3% difference. It would be better to buy a house that is 8.3% cheaper and pay the same payment you would over 20 years.
  19. From personal experience and the experiences of several of my friends, SA Home Loans tends to be much more flexible and willing to negotiate interest rates than the banks. Recently, a friend of mine called them and offered to move her Nedbank home loan to them if they offered a better interest rate. She was paying 12% at Nedbank and they dropped her interest rate to 10.2% and covered the bond costs. And when I was buying, SA Home loans made me an offer of prime rate. I asked them if they would drop the lending rate by 0.25% and they said they would do so if I increased my deposit by a certain amount, which I did. So, after approval in principle, they certainly are willing to negotiate interest rates depending of your, and the property's, risk profile, as well as the deposit you're prepared to put down. Also, I've had my bond with them for almost seven years and I'm very happy with their service. You really should give them a call...
  20. I've currently got: Inside TFIA: SMART: 12% NFEMOM: 12% STXQUA: 12% PTXTEN: 24% ASHGEQ: 20% STXEMG: 10% SYG4IR: 10% Outside TFIA: GLODIV: 33% GLPROP: 33% STXNDQ: 33%
  21. That is an unusual but interesting mix!!!
  22. Every month for the past few years, I have looked forward to Nerina Visser and Simon Brown doing their two episodes per month of "ETF investor" that can be watched on YouTube. And then in September, suddenly nothing! Does anyone know what happened?
  23. Yes, and to be more precise: 7% STXEMG (excluding Africa) + 93% STXWDM = ASHGEQ Except that the split of securities is also slightly different. STXWDM has 25% financials and 18% Tech, whereas ASHGEQ has 15% Tech and 14% financials. ASHGEQ is more diversified across sectors as well as countries.
  24. I don't know if "bad idea" would describe investing in both, but it is certainly not the most efficient. Firstly, your fees will be duplicated, and secondly, basically ASHGEQ is almost the same as STXWDM plus additional exposure to emerging markets (ie. China, Japan, Asia, South America and Australia). Doing both kind of defeats the object as you are basically then simply cutting the emerging market exposure portion of ASHGEQ in half, which defeats the whole point of going ASHGEQ in the first place. There is an excellent article on Simon Brown's JustOneLap that I would highly recommend that you read carefully before making your choice: https://justonelap.com/etf-understanding-the-ashburton-1200-etf/ P.S. I have ASHGEQ in my TFIA and my wife has STXWDM in hers. I think you should decide whether you would like emerging markets exposure in your ETF of if you only want developed markets. Then choose the appropriate one and buy that one only, else you will be wasting money on extra fees every month. Both are excellent, and whichever way you choose, you won't be making a mistake.
  25. If I were to choose just one ETF to invest in, without a doubt in my mind, it would be the Ashburton Global 1200 Equity ETF (ASHGEQ). If I had to choose just one, I would never go country specific like US or Japan - this just has too much concentration risk - get a bad president or a war in that country and might just lose all your money - I'd definitely go for a world index. Therefore, from your list, I'd immediately disqualify SYGJP and SYGUS. From the two world ETFs on your list, both STXWDM and SYGWD track the same index but Sygnia charges double the fees. Therefore it gets disqualified too. So we are left with STXWDM, which is an excellent ETF and would be my second choice after ASHGEQ. There are two reasons why I prefer ASHGEQ over STXWDM: 1) ASHGEQ has some emerging market exposure, which traditionally provides better growth than developed markets over long periods, whereas STXWDM is only developed markets (safer, but less growth). 2) ASHGEQ is more diversified than STXWDM, lowering the downside risk. ASHGEQ is slightly more expensive than STXWDM in terms of fees, but I still think the possibility of better returns from ASHGEQ, as well as the better diversification, do justify the fees and will be worth it in the long run. So for your second question - what would be a good first ETF? Either Satrix MSCI World (STXWDM) or Ashburton Global 1200 (ASHGEQ) would be excellent choices, in my opinion.
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