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Messages - andre

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1
Shares / Re: Investment Strategies for Nomads
« on: June 21, 2018, 10:34:18 pm »
It's been quite a while since I've posted here or even visited the forum..
We were planning to have a short holiday in Italy this year to attend a family wedding but in the 2nd week of January things changed radically.  ;D
Our schedule got pushed forward rapidly and ended with me quitting my job effective end May. My wife ended all projects at the same time and we took off from 1 June - starting our nomadic journey.
The last few months was 'interesting' and although we put a few properties on the market we actually bought one as well - go figure  ;D
Hopefully, things will start to settle down and we will figure out how (and if) the puzzle fit .  ;D

2
Shares / Re: My 15 minutes of fame
« on: June 21, 2018, 10:18:34 pm »
Pity you didnt get a bit more time  :TU:

3
Off topic / Re: Transferring money overseas, any tips?
« on: June 21, 2018, 10:08:45 pm »
If you have a postal address in any EU country then you should be able to create an N26 account using your SA details. You dot need to be a resident and they will use your SA tax details and SA password for verification. But you must have an EU address available to receive the associated Mastercard.
The basic account has no fees and I have funded my N26 multiple times with discretionary allowance from SA. From there I fund my DeGiro trading account and have set up the same for my wife.
If you want to give it a go send me your email address and I will send you an invite link.

4
Shares / Re: TFSA
« on: February 21, 2018, 05:26:11 pm »
Although anticipated it seems there is no change to the annual limit or being able to transfer to another fund (yet).

5
Shares / Re: Selling your shares after 3 years.
« on: February 20, 2018, 04:49:34 pm »
Thanks that sort of confirms my thinking.  8)
This is something to ponder though:
Quote
In my case where I was living off my investments from year 1, I had to pay normal income tax and not CGT until my 3 year holding term was reached then it converted to CGT. My effective tax was about 30%.
Ideally one should not draw income from selling equity for the first 3 years if in any way possible - UNLESS the

So in the example above Johnny will pay tax as follows:
Taxable Income on R120k @ 18% = R21 600 minus primary rebate R13 635 = R7 965
plus DWT @ 20% (assuming locally taxed) = R10k
Income from sale of equity = R82k with a base cost of R75k results in a capital gain of 7k which is covered by the exclusion. If it's deemed to be revenue this gain will be added to the taxable income and taxed accordingly at marginal rate - in this case still 18%.
So assuming the CGT exclusion is allowed then the total tax bill will be  R17 965

If the dividends were of foreign nature there's might be an exclusion ratio of 25/45 applicable which exempts a portion of the dividends from tax which could potentially reduce the total tax to R11 965



6
Shares / Re: Selling your shares after 3 years.
« on: February 20, 2018, 10:24:50 am »
I had to go read up on Section 9C thing a bit and found a summation:

What section 9C does is to remove any uncertainty as to whether or not the proceeds from the sale (for example) of shares are capital or revenue in nature.  If shares that have been owned for at least three years are sold, irrespective of whether the intention upon acquisition was for investment of speculative purposes, the proceeds will be capital in nature and subject to capital gains tax.

So the question is what happens if I sell off a bit of equity EVERY year - will it be deemed capital or revenue in nature by default and what would be the preference if you fall into a low-income bracket? Guess I'll have to work my way through the "Comprehensive Guide To Capital Gains Tax" eventually.  :o
How about an example:
Johnny needs 20k per month i.e. 240k pa. from year 1
He receives an income from rental property (after expenses) of R120k pa
Additionally, he has a 2.5m capital invested in ETFs - yielding 2% dividends and (he hopes) will see 8% in return.
He thus receives R50k pa in dividends and make up the rest (R82k) by drawing down on the capital.

How would his tax situation look?




 






7
Shares / Re: Bitcoins
« on: February 06, 2018, 02:13:29 pm »
The carnage continues  >:(

BTC/ZAR 82,000
ETH/ZAR 7953,00

 I bet there's a lot of blood on the streets by now

8
Shares / Re: Bitcoins
« on: December 12, 2017, 10:01:04 am »
What are your thoughts on this: https://www.wired.com/story/bitcoin-mining-guzzles-energyand-its-carbon-footprint-just-keeps-growing/

With the damage bitcoin is doing to the environment surely it's unethical to support it? The bubble aspect is now only a secondary concern to me.

The transaction costs also mean it doesn't have the ability to perform it's intended purpose of facilitating low value transactions.

None of this is saying it might not go much much higher, but for the sake of the planet I do hope the crash comes sooner rather than later.

I've been trying to figure out a way to classify the different 'crypto' offerings but there's plenty of overlap:
1. Digital Assets
2. Crypto Currencies (transactional)
3. Crypto Protocols (smart contracts)
4. Funding Tokens (displace traditional venture capitalists from the fundraising process)

9
Shares / Re: Bitcoins
« on: December 01, 2017, 08:54:04 am »
On which platforms or exchanges are you guys buying your cryptos? I've read so much negativity about scam exchanges, etc that not sure where to buy.

Are you buying and storing your currencies on the same exchange or using a seperate wallet? Be interested in hearing how you rate the various players in the market.

A hardware wallet would be the best and safest option. IMO one should never leave crypto on a wallet in any exchange - just be aware that some exchanges charge fees for sending and receiving crypto.  Second to a hardware wallet would be a reputable software wallet where you control all your own private keys. I would recommend Exodus.io at the moment but there are others.

With regards to exchanges - personally I've used Bitstamp.net (they accept SEPA account funding at no cost), Bittrex.com (only exchange you can purchase virtually any altcoin - they use USD and BTC as base currency), CEX.io (expensive but you can fund your account with a credit card and the platform is good), Luno (for obvious reasons)

10
Shares / Re: Bitcoins
« on: December 01, 2017, 08:45:35 am »
Here's a question for some of you who have a few hundred K in bitcoin. If you had the same amount in cash today, would you put it in bitcoin now?

I like this question as it forces one to look past the hype and current fomo surrounding crypto. Personally, I would play it safe but that's because of my goals and adversity to risk.

Although I have a good understanding of blockchain and the value the technology might add - there seem to be a bit of a separation between what's happening with Bitcoin and the application of Blockchain. This makes Bitcoin a form of a digital asset rather than the currency it was intended to be. Frankly, right now I would rather look at some of the altcoin technology offering real-world application of blockchain as a long-term investment rather than Bitcoin. But Bitcoin is a fun ride at the moment and if you have everything set up it's pretty easy to turn a quick 10-15% with some form of arbitrage. Else treat it like gambling and just play with a bit of spare cash if you have it..
There's lots of profit in altcoins if you're prepared to risk but it can be extremely volatile and you have to do your homework. For example 3 weeks ago you could buy ADA (Cardano) for USD 0.02 and now it's sitting around USD 0.11.
Interestingly the real tricky part is converting your gains to usable currency (fiat) - most exchanges uses BTC or USD as base currency so you have to risk the volatility of BTC to move currency. 


11
Shares / Re: Bitcoins
« on: November 27, 2017, 09:03:25 am »
Knocking on $10 000
Already trading over ZAR 165k on Luno



12
That ladies and gentlemen is why we buy and not rent.

As long as its buying as an investment only and gear your own contribution as aggressively as you can.
Owning the property you live in is still up to debate as to how good an investment strategy it is...

13
Off topic / Re: Live chat
« on: November 08, 2017, 04:21:24 pm »
Thanx for the tip, will try Luno. I see they are the prefered platform.

If you want to by LTC local the only option is ICE3X but they have highish margins so take care to compare prices.
If you're using ZAR rather buy BTC from Luno and move it to an exchange where you can swop it for other currencies like LTC.
Actually, a better way of doing it is to move your BTC away from Luno to a wallet where you control the private keys.
One option is to use http://www.exodus.io/ which - a desktop wallet with great features.  You control your own private keys and can use Shapeshift to convert to other supported crypto at low cost. (If you have USD or EUR then buy BTC from Bitstamp.com as it's around 6% cheaper than Luno on avg).
If you want access to all kinds of obscure crypto you can register at https://bittrex.com/


14
Good article.

I know you're both right no doubt.

But what if you like nice things, head & heart, head & heart.

On the odd occasion, one does tend to ponder those issues.
We all like nice things after all


15
Off topic / Re: Live chat
« on: November 01, 2017, 11:28:13 am »

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