Author Topic: Introduction and a request  (Read 1423 times)

sophie demmings

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Introduction and a request
« on: March 28, 2020, 10:18:18 pm »
Greetings Everyone

I feel happy and grateful to have stumbled onto this site. I am 60 years old, working abroad and able to invest around R36K per month. I would really appreciate(!) some help as to the best course of action regarding the best investment route to take.  I need to save as much as I am able to in the coming years.

Thank you very much.
Sophie




Patrick

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Re: Introduction and a request
« Reply #1 on: April 01, 2020, 08:07:08 am »
That's a really nice amount to invest monthly. Why bring it into Rand if it's already offshore though? Why not simply use an offshore broker like interactive brokers or degiro?

sophie demmings

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Re: Introduction and a request
« Reply #2 on: April 01, 2020, 08:37:25 pm »

Thanks for your kind reply, Patrick. I will make further enquiries about interactive brokers/ degiro. Your site has been a source of invaluable information - although a lot goes over my head.

sophie demmings

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Re: Introduction and a request
« Reply #3 on: April 14, 2020, 04:21:39 pm »
Hello again Patrick

With regard to offshore investing and Interactive brokers - they are not in the picture for me at this stage. With regard to Degiro,  I have come across instances on the 'net where they have received some bad rap. A little unsettling...

Are you able to advise any alternatives?  My investment period, going forward,  is around 5 years since I need to arrange a home of my own in South Africa. ( In this regard, I cannot think of any other alternatives). A further concern is that one may liable to taxation ( or similar ramifications/pitfalls) by both the US and South African tax system relative stashing away money in USD. Is this a consideration?

I am currently working in a Gulf country and may have the option choosing the currency to deposit/transfer into another bank account - globally. I still have to arrange the off shore bank account - hence these questions to you. My Gulf bank account is not an option.

Finally, at the risk of asking a naive question - are you able to briefly spell out the benefits of saving/investing in USD ( or an offshore currency) as opposed to ZAR. I realize that diversification of an investment portfolio is the thing to do, however, I would appreciate your indulgence in this regard. Hopefully, others at a similar level of financial know-how may also benefit.

Thank you!



Patrick

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Re: Introduction and a request
« Reply #4 on: April 17, 2020, 09:46:51 am »
I personally haven't looked at any other firms in years apart from Degiro and Interactive. Before going with interactive I considered a few, but that was years back so it's not really relevant. There is always Easy Equities USD, and I think they're one of the cheapest ways to invest in the US, but they're US only. Sorry I can't be more useful there, maybe another forum member will be.

The reasons to invest in USD as opposed to ZAR are that you'll almost certainly pay less capital gains tax, and also less dividends tax investing in USD. See these 2 links:
https://investorchallenge.co.za/our-government-really-doesnt-want-us-to-invest-locally/
https://investorchallenge.co.za/pay-less-dividend-tax-by-doing-this-one-thing/

sophie demmings

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Re: Introduction and a request
« Reply #5 on: April 17, 2020, 05:39:47 pm »
Appreciated.

jayovee

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Re: Introduction and a request
« Reply #6 on: April 18, 2020, 11:44:34 am »
Hi Sophie.
Excuse me butting in here.
Please take a look here https://justonelap.com/ and here https://www.facebook.com/groups/thefatwallet/members/
The Fatwallet group is the Fb for Just One Lap.
They are portals of peer to peer free and excellent advice.
Good hunting and be well.

sophie demmings

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Re: Introduction and a request
« Reply #7 on: April 21, 2020, 04:23:31 pm »
Wow, thank you jayovee. I sure can use all the help I can get. ' May the road rise up to meet you..'

AJ Pretorius

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Re: Introduction and a request
« Reply #8 on: October 01, 2020, 07:47:29 am »
Hi Sophie

I only stumbled across your message today. Hope you have found a solution. Personally, I used Easy Equities. Work good for me.
I transfer straight from my foreign bank account into City Bank EE USD. Money reflects in a couple of hours ready for investing. Have done this for the last year and cannot complain. Once I have enough and feel limited to EE. You can transfer to Interactive Brokers like here, https://investorchallenge.co.za/investing-properly-offshore-in-3-easy-steps/

Reason I do this:
*I prefer to have my currency in something stronger than RAND.
*I have a great fear in what happened to Venezuela
*I do not want to be limited to move money out of SA once I have permanently located somewhere else. (If all else fails and end up back in SA, you can still sell shares for monthly income and have proceeds paid into SA bank account)

Both me and my fiancÚ do the above and hope to achieve FIRE in a couple of years.  :money:

After being away from SA, I only now realize how volatile RAND is. I am lucky enough to have the benefit of receiving a foreign salary and spend it in local currency Zambia. Just cannot beat the benefit of buying goods which seems to be getting cheaper month to month. Groceries  :)
But then again, I only shop for bargains.

All other things that are linked to the exchange rate, at least we keep up with the increasing prices.

Regards
« Last Edit: October 01, 2020, 07:50:35 am by AJ Pretorius »