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could not trust myself with CFD's - I am way to good at selling "sure things" to my self. Otherwise 100% into equities - but have around 30% of that in REITS. Have a tiny RA which I stopped due to dismal performance (thanks Allan Grey) - and have a TFSA with ETF's.

Although am weighing up the pro's and cons of turning a garage at the back of my property into two self catering flats.

maths as follows:

Flats: R300K Max to convert - rented out @ R500 per night every weekend = R104K Call it R80K after expenses.

Shares: Return on R300k around R15K per year from dividends

Capital Growth:

Flat: Lets say it doubles after 10 years so R600K

Shares: Double every 5 years so R1.2mill

Total return on 10 years: Flat 800 + 600 = R1.4mill  vs shares 1.2 + 150K R1.35

****Not taking into account inflation. Dividends usually grow quicker than inflation / I might get a better occupancy rate - would aim it at weekly business guys. Probably would invest some of that new cash flow. But looking at our house price, think R450 would be what I would get with the flats.

But ball park figures - I sway between the two. The extra cash flow would be great - but it will cut into my err, watching TV, napping, reading the newspaper and generally buggering around time.

One of the nicer articles on TFSA's around - but would have mentioned ETFSA offering - which looks reasonable for guys wanting to invest monthly.

People putting it into cash based saving accounts - so sad, yet you know with all the advertising going on, they will take the bulk of the money.

I wonder how money the average person looses over a lifetime because of a lack of even basic financial ideas and concepts. Like my mother in law - has had all her retirement money in a fixed deposit for the last 5 years. Unbelievable. Yet she's quite clued up on the lives of random celebrities. Way to spend you time MIL.

 

Quote from: residentsa on May 03, 2015, 07:14:22 am

Deciding to start with 2.5k in STXFIN from this month and to alternate with DBXUS and STXSWX so that in next 12 months to come, I would have 10K each in these 3. Review after 12 months.

Good choice. I see the FINI is doing rather well. Up there with the INDI and doing 25% PA ave.

For anyone looking.

eRAFI Fin 15 also looks interesting - seems to have a lower costs and although similar, shares make up is slightly different.

http://etfcib.absa.co.za/Fund%20Documents/eRAFI%20Financial%2015%20-%2031%20Mar%202015.pdf

Has out performed the STX FINI over most periods - generally only slightly, but over 10 years you get 196% for STX FINI and 231% for the RAFFIN. So next year will buy the RAFFIN instead. Prefer the larger holding of FNB in the STXFini but like that property plays a small part in the RAFFIN. If in doubt, take both 

How did you invest in these shares /

Did you go via satrix  or a different company ?

easyequities.co.za - you get a TFSA account as well as a normal trading account - no monthly fees, from what I have seen and compared, best deal around. IMO

You haven't had a great year - BUT you did very well before that. Personally, you should be looking at your returns over a 5 year period - one year is a bit short. But as you said, maybe switching to ETF's and still get equity growth but spreading the risk, might be the way to go. Just looking at the investor challenge - quite easy to see most ETF's out perform individual picks - although most are not really portfolios.

Are you going to wait for results and then the dividend - or start a gradual sell off now?

Grindrod Div R5000
Stx INDI R10 000
STX FINI R5000
STX Divi R5000 (bought for a small exp to resources)
DBXUS R2500
DBXEU R2400

Will be very interested to compare this to my main account - might convince me to switch to ETF's for everything.

Thanks for that XXXXX - not the answer I really wanted, but cheers - at least I know.