5851
MPT 30.00 cents - LDT: 6 Sep 2016
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5859
Shares / Re: Offshore broke4s
« on: August 12, 2016, 10:37:07 am »
For you guys opening the De Giro accounts, just make sure you get the CUSTODY account, and not the regular account. With the regular account your shares are lent to others (to be shorted I assume). Trouble is, the risks are on you should the party lending the shares not be able to return them.
This isn't an issue with the newer custody accounts.
I'm still looking at costs. At the moment if I buy VWRD through interactive, I pay 0.08% with a minimum of $1.70 per transaction. With De Giro I'd pay €2 + 0.02%.
Here's how I see the costs:
$1000 IB: $1.70 DG: €2+$0.2
$2000 IB: $1.70 DG: €2+$0.4
$3000 IB: $2.40 DG: €2+$0.6
$4000 IB: $3.20 DG: €2+$0.8 (+-$3)
$5000 IB: $4.00 DG: €2+$1.00
$10000 IB: $8.00 DG: €2+$2.00
It looks to me like there's a crossover point at around the $4000 mark, before that interactive is cheeper, and after that De Giro is cheaper. This is all provided you have $100 000 in interactive, otherwise you pay $10 per month for the account. There will be another crossover too, with IB there's a maximum fee of $39, so for very big transactions IB will be cheaper again.
In theory you could also just buy VWRD in Euros for no fees, however since I have $'s in my account and not Euros, I'd have to pay 0.1% currency conversion, so again it would only be cheaper for very small amounts.
Another theory says I should just buy VT in USD, which has TER than VWRD (0.17% vs 0.25%), but then the hoops to jump through to get the divvie tax reduced from 30% to 15%, and there's the risk of holding over $60k and dying and having to put the US estate tax treaty with SA to the test. So much to consider for a saving of a couple of $ a month!
This isn't an issue with the newer custody accounts.
I'm still looking at costs. At the moment if I buy VWRD through interactive, I pay 0.08% with a minimum of $1.70 per transaction. With De Giro I'd pay €2 + 0.02%.
Here's how I see the costs:
$1000 IB: $1.70 DG: €2+$0.2
$2000 IB: $1.70 DG: €2+$0.4
$3000 IB: $2.40 DG: €2+$0.6
$4000 IB: $3.20 DG: €2+$0.8 (+-$3)
$5000 IB: $4.00 DG: €2+$1.00
$10000 IB: $8.00 DG: €2+$2.00
It looks to me like there's a crossover point at around the $4000 mark, before that interactive is cheeper, and after that De Giro is cheaper. This is all provided you have $100 000 in interactive, otherwise you pay $10 per month for the account. There will be another crossover too, with IB there's a maximum fee of $39, so for very big transactions IB will be cheaper again.
In theory you could also just buy VWRD in Euros for no fees, however since I have $'s in my account and not Euros, I'd have to pay 0.1% currency conversion, so again it would only be cheaper for very small amounts.
Another theory says I should just buy VT in USD, which has TER than VWRD (0.17% vs 0.25%), but then the hoops to jump through to get the divvie tax reduced from 30% to 15%, and there's the risk of holding over $60k and dying and having to put the US estate tax treaty with SA to the test. So much to consider for a saving of a couple of $ a month!
5860
Off topic / Re: Holidays - Show us what you did
« on: August 11, 2016, 09:52:54 am »
So much to laugh at here!
Oh and Orca, it is Bev. She's been looking for you for years, apparently you're my real father in law. Where should the child support bills be sent to?
Nope, not Bev, the one that got away is still managing to keep away Orca
Oh and Orca, it is Bev. She's been looking for you for years, apparently you're my real father in law. Where should the child support bills be sent to?
Nope, not Bev, the one that got away is still managing to keep away Orca
5861
The Investor Challenge / Re: Blog post: You actually can buy happiness, but it's not how you think
« on: August 11, 2016, 09:49:48 am »Another very cool blog post Patrick!Thanks
I completely agree on rather experiencing/seeing places rather than having lots of stuff.
My dream is similar but slightly different...I want to 4x4 or "overland" through different parts of the world, to see nature where people rarely come.
I've had the overland dream before too. For a while I wanted a unimog camper, but the prices are insane and they drink diesel! I've since travelled in pretty much every country in central and eastern africa, and a couple in western africa, so that desire is gone. My camper dream has morphed into a boat so I can see new places now.
Very true Patrick. And you've just been spending money you've sweated and worked for - wait until you are spending proceeds from your investment - money that other people sweated for. Even better!Yes, I have a feeling it will be way more satisfying knowing that I could just carry on endlessly while the minnions bring in the cash! Just a few more years I think...
5862
Shares / Re: The Rand
« on: August 10, 2016, 03:31:19 pm »I forget the exchange rate that I bought the USD for because you just cause yourself unnecessary pain thinking about what the Rand could have done. I just want more bang for my buck.
I measure my wealth in the big three (EUR, USD, GBP) and so far I been better off investing offshore than local.
Well said Conrad, I also promised my wife I'd do the same. The rate reached a level where I could convert and have a number in $'s I was happy with, so it's time to move on!
Any strength from now is more bang for buck as you said.
5864
The Investor Challenge / Blog post: You actually can buy happiness, but it's not how you think
« on: August 10, 2016, 10:03:02 am »5865
Shares / Re: The Rand
« on: August 10, 2016, 08:18:38 am »
R13.37/$ now!
Part of me is cursing my missed opportunity, but with the big picture it's not too bad. Half my money was in DIVTRX, it's still doing fine, the other half was in STXIND which has been hit by the strong rand. I also remember how I felt last year after Nenegate. I was so down in the dumps, I thought if only I could've sold yesterday... if it ever gets back to those levels I'm out of here. That level was R14.50, I moved my money at R14.30, so I can't really complain. Dawie Roodt also said he'd buy $ at R14.50 and buy rand at R16.50. He's an expert. Apparently.
Now what's changed. Let's see, the JSE has owned up to making a massive screw up. There's no record inflows, it was all a computer error. The reserve bank has said growth won't be 0.6% anymore, it's now 0% yet the rand gets stronger
The only thing I can confirm, is that nobody has the faintest clue what is going to happen going forward. Junk status in December? Possibly? Probably? Who will win the fight for control of the ANC, Cyril? Or maybe Zuma will get even stronger and get rid of the Gauteng leadership ensuring that he can pick his successor, or even keep his seat as ANC president.
I'll stick with the statistics in my investing. You can't pick shares and beat an index. You can't pick an economy and beat the global average. The rand should depreciate by the inflation rate differential.
I'm sad I didn't move my money at the bottom, but I still earn in Rand, so I'll be using the stronger rand to keep investing in my low cost global fund. The Rand has just given me a raise in dollars to do that with.
Part of me is cursing my missed opportunity, but with the big picture it's not too bad. Half my money was in DIVTRX, it's still doing fine, the other half was in STXIND which has been hit by the strong rand. I also remember how I felt last year after Nenegate. I was so down in the dumps, I thought if only I could've sold yesterday... if it ever gets back to those levels I'm out of here. That level was R14.50, I moved my money at R14.30, so I can't really complain. Dawie Roodt also said he'd buy $ at R14.50 and buy rand at R16.50. He's an expert. Apparently.
Now what's changed. Let's see, the JSE has owned up to making a massive screw up. There's no record inflows, it was all a computer error. The reserve bank has said growth won't be 0.6% anymore, it's now 0% yet the rand gets stronger
The only thing I can confirm, is that nobody has the faintest clue what is going to happen going forward. Junk status in December? Possibly? Probably? Who will win the fight for control of the ANC, Cyril? Or maybe Zuma will get even stronger and get rid of the Gauteng leadership ensuring that he can pick his successor, or even keep his seat as ANC president.
I'll stick with the statistics in my investing. You can't pick shares and beat an index. You can't pick an economy and beat the global average. The rand should depreciate by the inflation rate differential.
I'm sad I didn't move my money at the bottom, but I still earn in Rand, so I'll be using the stronger rand to keep investing in my low cost global fund. The Rand has just given me a raise in dollars to do that with.