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WHL 133.00 cents - LDT: 26 Feb 2016
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6125
Shares / Re: TFSA (2016)
« on: February 12, 2016, 05:47:09 pm »
With EE there's no platform charge, just 0.25% in transaction fees. ABSA is even cheaper at 0.2%, I think they're the cheapest if the lot, so I'll be using them from note on.
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Shares / Re: TFSA (2016)
« on: February 12, 2016, 02:13:42 pm »
I wonder if Simon is aware that he still has to pay divvie tax on DBXWD as Mr Div pointed out in another thread. That being the case I'd rather buy DBX in a normal account and save the tax free account for stuff that can really take full advantage.
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Shares / Re: The Rand
« on: February 11, 2016, 03:48:00 pm »
But that Ted candle indicates a strengthening rand. Maybe Zuma is stepping down haha.
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The Investor Challenge / Anonymous needs advice
« on: February 10, 2016, 12:48:02 pm »
I've had a query from a member who wants to remain anonymous, and is looking for some advice. Obviously we're not financial advisers, but then again many financial advisers put clients needs after their own commission cheques. I offered to post this for the member anonymously and see if we can get some good ideas from the rest of you here.
So here are the facts:
The member initially wanted to do the following:
So what would you advise this woman to do?
*I'm still missing a few pieces of info, such as living costs, housing situation and medical costs, so if the member would send that to me I'll update it here. Any other info you think would be worthwhile?
So here are the facts:
Quote
-Female age 60 retiring end March 2016
–Healthy BUT seriously financially challenged!
-It must be kept simple – see previous comment.
-She is unlikely to ever move abroad, holiday in Botswana/Namibia would probably be it.
-R2m is in a pension fund and max withdrawal is 1/3rd balance must be reinvested in an annuity.
-R1m free to invest anywhere. But for emergencies, say R100K should be immediately accessible.
-R375K is in a deferred/preservation annuity at Allan Gray.
-Unless there was a auto facility for selling equity (ie. 2%) to top up income, that would be a non-starter.
-There is no debt to speak of.
-Intention is to put R30K in TSA.
-R1m to be done in next week and a half as we are going away until March and any tax benefits (if any) should be in place before end of tax year.
The member initially wanted to do the following:
Quote
I have suggested moving the R2mil to the Allan Gray fund on retirement. (They surely have to perform better at some stage going forward?) Take out a living annuity and splitting the investment 60/40 Stable and Balanced Funds. If at some stage in the future the performance is not meeting her needs she could convert to a life annuity with a pension, with inflationary increases, for life.
Putting the R1mil from the notice account in some sort of ETF (s) - not sure which? Maybe Property, with an overseas bias, for some sort of Rand hedge and use the income to supplement her pension drawing which I estimate will be around 8.5K per month.
Just to clarify........
-By property I meant one or two of the listed reits, not houses. Preferably “foreign/local” ones where the distribution would be considered a dividend, not interest.
-The idea of a rand hedge was partly to offset imported inflation. Also see previous comment.
-The 4% rule could be applied to her pension withdrawal, I suggested 5% to achieve her income need, assuming 10% plus return.
-My suggestion of a living annuity was because you can convert it to a life annuity at any time, but not the other way round.
So what would you advise this woman to do?
*I'm still missing a few pieces of info, such as living costs, housing situation and medical costs, so if the member would send that to me I'll update it here. Any other info you think would be worthwhile?
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Shares / Re: Investing in SA or taking/leaving money overseas
« on: February 09, 2016, 11:10:18 am »
Yes, you'll have to take the hit, and unfortunately even inflation isn't taken in to account. My strategy is to sell when all markets are down like in a bear market. That minimizes your capital gains for instance your JSE shares aren't worth as much, but you also buy foreign shares at a lower price, so the net effect is no loss.
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The Investor Challenge / Re: Blog post: You don’t earn nearly as much as you think you do!
« on: February 09, 2016, 09:30:57 am »
Very well said GCR. I agree, you generally know where you'll be working, so it should have been considered before taking a job. I used to walk to work as I made sure I lived close enough, but life tends to make other choices for you, marriages and moves. Fortunately my wife walks to work, and I bike half the time, so we're still doing quite well as a couple 
I tend to love about half my job, and I consider that quite a plus, so I'm happy to accept all the other terms and conditions that come with it. That said, if one of my sites or apps took off in a big way, I'd probably not hang around too much longer. I seem to have picked up the travel bug at my current job, and now it seems that I want far more of it.
I tend to love about half my job, and I consider that quite a plus, so I'm happy to accept all the other terms and conditions that come with it. That said, if one of my sites or apps took off in a big way, I'd probably not hang around too much longer. I seem to have picked up the travel bug at my current job, and now it seems that I want far more of it.