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Messages - andre

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1
Shares / Re: Investing in US Stocks?
« on: August 02, 2018, 07:09:17 pm »
Also just thinking about dividends tax say I managed to register with DeGiro with Irish passport.
Ireland I see also has a tax treaty with the US like SA, how would that effect my tax situation?
Would I have to pay tax in Ireland?

As long as you have a forwarding address in any of the supported EU countries (Euro based) you can open an N26 bank account with your SA passport
Once you have the N26 account created you can open a DeGiro account. (Send me a PM if you want referral links to either.)
Make sure you understand what a custody account is and choose accordingly.

As long as you are considered 'ordinarily resident' in SA you will be taxed in SA.
Dividend Withholding Tax will be deducted by the broker before it hits your trading account - depending on your SA tax rate there is a potential to get a slight rebate when you declare it to SARS. If the product/share you sell is domiciled in Ireland then CGT will be collected by SARS when declared - if it's not done by Ireland already. Make sure you have a will in place to deal with offshore assets.

Dont consider the above as complete information on the matter of tax without following your own due diligence - I'm no expert and only offer my opinion



2
Shares / Re: Investment Strategies for Nomads
« on: July 10, 2018, 03:12:59 pm »
It will take a year or two for the tax situation to become clear. I was still employed until May so mostly standard tax for this year. For the following year things should be more interesting as until now I've never sold equity or drawn much interest on cash or savings.
The strategy is to take advantage of the upcoming lower tax bracket we'll fall in from this/next year and share the burden between us as best as possible. Relatively speaking we'll each become 'low-income' earners for at least the first few years or so there should be no other tax implications that just rental income, interest and DWT. The challenge will be to leverage the foreign DWT to lower local income tax a bit.
I don't foresee the need to sell off equity for a while but this might change once we've made the complete transition to nomads.
Will keep you guys posted though.  :TU:

3
Shares / Re: Investment Strategies for Nomads
« on: June 27, 2018, 06:50:40 pm »
Suddenly those RSA retail bonds at 8.5% doesnt look too bad  ;D But that would mean accepting the low-risk option and market FOMO. 
With the currency swings and you living offshore it might not actually be low risk...

Exactly! We spend Euro / USD and just the inflation differential could mean 2% p.a. against ZAR



4
Shares / Re: Investment Strategies for Nomads
« on: June 27, 2018, 01:12:28 pm »
One thing that plagues me is my desire to move money offshore. This dampens my enthusiasm for being too invested in ZAR land.
However the moment we move money into another currency it pretty much HAS to go into equity to have any chance of growing..

5
Shares / Re: Investment Strategies for Nomads
« on: June 27, 2018, 12:50:15 pm »
Interesting times indeed. That said, if we always wait for the perfect moment we might just wait forever?
For us, this is as much a lifestyle choice as it is a financial choice. We need to make the absolute best of at least the next 10 years - and the time is now. Not later.

But yes. There might be a continuation of sideways market action and I guess an expectation of closer to 7-8% is more realistic right now. Who knows how things will look in 10 years from now. Fortunately (for us) it's not an all or nothing approach and we can evaluate our position every few years and if need be even hit the grindstone again for a while. But that's far from a first choice...

To be honest, right now I'm not too certain on the best course of action ito investments. We have some property liquidating this year and it's a frightening prospect to lose a chunk of the capital right away if we dump it in equity.  :o What's the 'safest' route for the next 5 years? Suddenly those RSA retail bonds at 8.5% doesnt look too bad  ;D But that would mean accepting the low-risk option and market FOMO. 
I'm thinking that it would be best to find a balance somewhere in the middle of Bonds, REIT's and Equity. I'd probably stick to a low-cost offshore world based ETF for Equity and look at Bond and REIT options in ZAR. We'll keep the property we have left for the next 5 years at least.

I'm all ears for any advice though  ;D


6
Shares / Re: Investment Strategies for Nomads
« on: June 24, 2018, 10:45:26 pm »
What pushed it forward? I blame Steinhoff   :D Partly tongue in cheek but my wife had some involvement in property development with them and that ground to a halt. Well, that's my story and I'm sticking to it.  8)
Many balls in the air at the moment and although we're traveling full time right now we have to finalize some property sales and find a sustainable way to manage the remaining issues. We'll be back in CT in October for a few months to wrap up a few things and at least enjoy a bit of Cape summer before heading off early next year - for what would probably be indefinite.

7
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

8
Shares / Re: My 15 minutes of fame
« on: June 21, 2018, 10:18:34 pm »
Pity you didnt get a bit more time  :TU:

9
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 don't need to be a resident and they will use your SA tax details and SA passport 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.

10
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).

11
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



12
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?




 






13
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

14
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)

15
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)

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