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Off topic / Re: Live chat
« on: September 02, 2016, 02:07:32 pm »
Hi Stealthy, like the blog! Although, heads up, you may want to fix your signature, the link has a misspelling 
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Shares / Re: TFSA (2016)
« on: February 12, 2016, 02:45:37 pm »
Yep, that was an interesting discovery - I think there is still perhaps some good to be had from having exposure to the world market (assuming you're not getting that elsewhere), but I wouldn't make it a core constituent of a TFSA portfolio.
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Shares / Re: TFSA (2016)
« on: February 12, 2016, 01:03:15 pm »Why ignore STXIND ??
That my main question... unless you feel Naspers is on shaky footing
It has 5 years of solid growth, SAB will move out soon and those top 15 will move up
I am of the opinion ( could be so wrong! ) that with Naspers you pretty much own ten cent and get all the other business in SA as an extra... its pretty good value
..............
My thoughts on BBET40, if you had to remove NASPERS, SAB and BAT out of the TOP40 in 2015 you would have had a shocking negative year... these stocks drove the year, why would i want to minimize my holding on them and go all equal in stock s that are clearly struggling in a no growth weak SA economy ?
That was my question as well - would it ever make sense to not include the one ETF that's done exceptionally well for years from your portfolio? It appears to be the closest thing to a relatively sure bet we have in our beleaguered economy at the moment.
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Shares / Re: TFSA (2016)
« on: February 12, 2016, 10:15:11 am »
Ha, I'm about ten times the noob you are - I'm still in the process of soaking up as much info as possible, so I find these types of threads to be very interesting.
Is there a particular reason why you're not including DIVTRX in your portfolio? In terms of growth and dividends, it seems to be pretty solid (perhaps not recently
) for the most part. I'm also wondering about including a Top 40, but not sure if it makes sense considering the other constituents. If you want growth, especially over the next 20 years, then focusing on the big returns of the more specialized trackers may make more sense. Could stand to be corrected here!
I also like the combination of the industrial trackers, especially the attempt balance out the weightings - I may just steal that for my own portfolio
Is there a particular reason why you're not including DIVTRX in your portfolio? In terms of growth and dividends, it seems to be pretty solid (perhaps not recently
) for the most part. I'm also wondering about including a Top 40, but not sure if it makes sense considering the other constituents. If you want growth, especially over the next 20 years, then focusing on the big returns of the more specialized trackers may make more sense. Could stand to be corrected here!I also like the combination of the industrial trackers, especially the attempt balance out the weightings - I may just steal that for my own portfolio
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Shares / Re: Investing in SA or taking/leaving money overseas
« on: February 09, 2016, 10:27:57 am »
Hi Patrick - am I right in understanding that, in your case, you'd have no choice but to take the capital gains hit if you wanted to transfer your investments out of the country? Or is there some loophole one can exploit?
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Shares / Re: STXIND vs DIVTRX
« on: February 09, 2016, 10:10:53 am »
It would be rather fantastic to have a crystal ball roundabout now But yes, will hold off on purchasing any shares until the speeches are over and there's some inkling of a smarter long-term play. Although, I'm not sure what actual difference it will make, seeing as you've got to invest somewhere.
I also tend to agree with what Orca said earlier in this post, about how the industrial sector is the beating heart of this country. Financials do seem to be akin to a crazed pinball machine at the moment. So....... reckon I'll be going with 50% in STXIND for now, rest to be determined.
But yes, will hold off on purchasing any shares until the speeches are over and there's some inkling of a smarter long-term play. Although, I'm not sure what actual difference it will make, seeing as you've got to invest somewhere.I also tend to agree with what Orca said earlier in this post, about how the industrial sector is the beating heart of this country. Financials do seem to be akin to a crazed pinball machine at the moment. So....... reckon I'll be going with 50% in STXIND for now, rest to be determined.
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Shares / Re: STXIND vs DIVTRX
« on: February 08, 2016, 05:26:28 pm »
Slight hijack, but it concerns these two ETF's - I'm trying to figure out which ETF's would be the best for a TFSA, as per my other thread. Is there any reason why the bulk being split between STXIND and DIVTRX would not be the best thing I could do? I know DIVTRX wobbled a bit due to the recent shenanigans, but as a long term holding, it still appears to be a good bet.
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Shares / Re: TFSA Portfolio Allocation
« on: February 08, 2016, 04:52:13 pm »
I was under the impression that if you had DBXWD (or any international ETF) in your taxable account, you would indeed pay dividend tax, but only up to 15%. Does this imply that investing offshore via these trackers means you get hit with double tax?
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Shares / Re: TFSA Portfolio Allocation
« on: February 08, 2016, 03:04:36 pm »Dividends are still taxed for overseas companies - so your only saving will be capital gains for the DBX funds, unlike SA ETF's where you obviously score on the dividend front. Just keep it in mind when deciding what's in the TFSA and what's out.
Huh, that's an interesting point that I hadn't considered, thanks for the heads up. Over 15 plus years, that's going to have a pretty substantial impact on the returns over the tax-free ideal. I suppose there's a sweet spot between the gains from being exposed to the world economy, and the loss of the dividends from said exposure. Maybe 50/50 is a bit much?
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Shares / Re: TFSA Portfolio Allocation
« on: February 08, 2016, 01:12:31 pm »I'm not sure myself yet about how much to go for international, especially at the current rand rate. To me, more importance is that you find a way to reach that R30k before 28 Feb. You can't catch this up.
On the DBXDW vs DBXUS, I'm going DBXWD as this has the maximum diversification. It does allocate about 50% or so to the US, so you might decide that is enough invested in the USA.
If DBXWD has as much as 50% US allocation, then that sounds pretty good - shall go with that one!
Yeah, I'm debating what to do about the TFSA - I have the option of pulling R30K from the access bond and using that, but my fiance would have a slight problem with that
The compromise is, as of next month, we're going to start contributing R2500 each into our respective accounts. As this is a two-decade commitment, my feeling is, eh, it'll be alright.Sitting in the same boat. At the moment my TFSA is 33% DBXWD and 66% STXIND. Not sure if I should keep it weighted like that or push the next R30k all into STXIND. Problem I have with STXIND is that there is that the top three holdings make up more than 50% of it.
That said, the top 3 holdings are Naspers, SAB and Richemont all with offshore exposure.
Another option is to play it safer and go with a Top40 like MAPPSG (I'm still looking for a reason not drop my RMBT40 in favour of it).
I was also contemplating going with a top 40 ETF, as a buffer to any craziness that might be introduced by going with a more specific ETF, ala STXINDI. I see there's a Coreshares Top 50, with a TER of only 0.2 - hmmmm. - EDIT: I see there's a service fee of 0.2%, but since it hasn't been around for a year yet, the full TER isn't available.
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Shares / TFSA Portfolio Allocation
« on: February 08, 2016, 12:22:04 pm »
Hi guys - about to begin riding the TFSA train, and I'm wondering how best to go about splitting the various ETF's.
My thinking is this - the only real question for a TFSA is how big you're going on the international allocation. For the SA equities, you'd put the bulk in DIVTRX/STXINDI/perhaps a REIT. For the international, a good option is DBXWD (TER of 0.68%). Not sure if it's necessary to include DBXUS, but perhaps it's a good idea to have a bigger proportion of the world's biggest economy.
So, with these conditions, how much of your portfolio would you put in the international players? I was thinking of a straight 50/50, but I'm wondering if that could be favorably tweaked. As this will only be accessed in 16 odd years, I'm ultimately far more interested in the long term performance, and so want to optimize for that. Any thoughts/criticisms?
My thinking is this - the only real question for a TFSA is how big you're going on the international allocation. For the SA equities, you'd put the bulk in DIVTRX/STXINDI/perhaps a REIT. For the international, a good option is DBXWD (TER of 0.68%). Not sure if it's necessary to include DBXUS, but perhaps it's a good idea to have a bigger proportion of the world's biggest economy.
So, with these conditions, how much of your portfolio would you put in the international players? I was thinking of a straight 50/50, but I'm wondering if that could be favorably tweaked. As this will only be accessed in 16 odd years, I'm ultimately far more interested in the long term performance, and so want to optimize for that. Any thoughts/criticisms?
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Off topic / Re: Transferring money overseas, any tips?
« on: January 26, 2016, 10:19:13 am »
Hi Patrick - did you ever find out more about this? I'm also wondering if it'd be a good idea to get some assets as far as away from SA as possible, but it does seem like the usual suspects charge an arm and a leg for the privilege.
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Shares / Re: Wait. ETF sales are ALWAYS taxed as CGT?
« on: December 18, 2015, 01:15:47 pm »
Yeah, it most certainly is - I guess it's the reward for saving hard and not blowing it all.
(It does make the case for retirement annuities even more tenuous - even the lowest amount you can get, 2.5% pa of the two thirds, is likely to be in income tax territory, even accounting for inflation. Get the tax benefit now, invest it, but get nailed at 55, perhaps far in excess of what you'd pay if you just invested all your after-tax income, even with taking the hit now? Man, suppose you need to a bit of everything, but still, can't help but feel that there must be a better option.)
Regardless, if ETF sales are going to be regarded as CGT events, then YES, awesome!
(It does make the case for retirement annuities even more tenuous - even the lowest amount you can get, 2.5% pa of the two thirds, is likely to be in income tax territory, even accounting for inflation. Get the tax benefit now, invest it, but get nailed at 55, perhaps far in excess of what you'd pay if you just invested all your after-tax income, even with taking the hit now? Man, suppose you need to a bit of everything, but still, can't help but feel that there must be a better option.)
Regardless, if ETF sales are going to be regarded as CGT events, then YES, awesome!
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Shares / Re: Wait. ETF sales are ALWAYS taxed as CGT?
« on: December 18, 2015, 12:46:01 pm »
Did you perhaps mean this one? http://investorchallenge.co.za/can-you-retire-by-40/ That one appears to have more to do with not paying taxes while still extracting a decent amount to live on.
Regardless, pretty rad! I would imagine that this is definitely the way to go, as opposed to going purely for dividends, as (I think) any proceeds are taxed at 15% regardless. I suppose the downside is, when it comes time to sell your shares, you might wind up not getting too much if the market's taken a downswing.
Regardless, pretty rad! I would imagine that this is definitely the way to go, as opposed to going purely for dividends, as (I think) any proceeds are taxed at 15% regardless. I suppose the downside is, when it comes time to sell your shares, you might wind up not getting too much if the market's taken a downswing.
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Shares / Re: Wait. ETF sales are ALWAYS taxed as CGT?
« on: December 18, 2015, 11:35:43 am »
Wait... let me just see if I understand this. With what I'm sure is rather naive simplification, it sounds as if one can draw about R253 000 pa without paying any tax, assuming you have no other taxable income.
R253 000 pa, less R30 000, gives you R223 000. Multiply that by 33%, you get R73 590, which is slightly less than the tax threshold of R73 650. Have I made some colossal error in understanding, or is this accurate?
R253 000 pa, less R30 000, gives you R223 000. Multiply that by 33%, you get R73 590, which is slightly less than the tax threshold of R73 650. Have I made some colossal error in understanding, or is this accurate?
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