6976
The indi is over R70 for the first time.
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6977
Shares / British man held over £500bn Wall Street 'flash crash'
« on: April 23, 2015, 08:58:16 am »
Quite an interesting story. Working out of his home. He apparently made £588,000 that day...
http://www.telegraph.co.uk/finance/financial-crime/11553433/British-trader-Nav-Sarao-charged-with-triggering-global-markets-flash-crash-in-2010.html
http://www.telegraph.co.uk/finance/financial-crime/11553433/British-trader-Nav-Sarao-charged-with-triggering-global-markets-flash-crash-in-2010.html
6980
Shares / Re: Easy Equities, any opinions?
« on: April 22, 2015, 12:24:14 pm »Quote(2) Where the value of a tax free investment is determined with reference to any
index of listed shares, the value of shares issued by any company may not exceed
an amount of 120 per cent of that company’s weighting in that index, subject to a
maximum of 35 per cent of the market value of the tax free investment.
I just do not understand that at all. And English is my first language.
What that says to me is that the weighting of a share in an index must be closely alligned to the index. Of course ETFs don't match an index perfectly, as they have to buy and sell in the real world, but that line says they are only allowed to fudge by up to 20%.
The limit there also sounds like it's been upped to 35% per company rather than 10%, which is why many of those ETFs seem to qualify.
I'm still going to call though, just a little busy at the moment.
6981
Shares / Re: Easy Equities, any opinions?
« on: April 22, 2015, 09:35:54 am »
Tough one, I'll get the easy equities guy on the line again later. He did tell me that he confirmed the STXIND availability directly with Satrix, so you would imagine that Satrix has done their homework.
One other thing I see is that the document are draft regulations released for public comment.
One other thing I see is that the document are draft regulations released for public comment.
6982
Shares / Re: Early retirement
« on: April 21, 2015, 07:22:43 pm »Well that settles it - smash a few car windows, grabs some goodies off the seats/out the cubbyhole and then - start a cottage industry of car guards
Creating cash flow and future dividends
6983
Shares / Re: Easy Equities, any opinions?
« on: April 21, 2015, 07:19:41 pm »
Easy equities called me yesterday, apparently the 10% applies to unit trusts not ETFs. I'll post more info soon.
6984
Shares / Re: Early retirement
« on: April 21, 2015, 12:00:12 pm »
This is such a fun thread. Firstly @jaDEB I always thought you were in your thirties, now I hear you've got a 21yr old daughter 
@Mr_D, I love the storytelling, really excellent! I'm amazed to find someone who spends even less than I do per month, though I do live in Joburg and have a child.
@Moneypenny, believe it or not, my plans for early retirement are similar, though possibly more expensive. I'd like to sail around the world, stopping wherever it takes my fancy. And Monaco does take my fancy, as long as I'm not paying for a hotel room. While I would be able to go on a cheaper boat, my SO has other ideas and wouldn't settle for anything under the R1.5m mark, so I need a far bigger nest egg to maintain that
@Orca, do you pay dividends tax as a non-resident?
I believe that mathematically it makes very little difference if you take a percentage from selling shares, or the same percentage from dividends. I can see how psychologically with dividends it feels safer, but on the whole studies show it's identical. In South Africa there is a difference though. We tax dividends at 15% regardless of how small they are, while selling shares goes for capital gains tax which is a max of 13.3% but will often mean you pay no tax.
For example:
If you only have share sales and dividends as income, and you needed R120k income from a share which over time made 100%, you could sell the R120k, your capital gains would be R60k, less R30k for the exclusion, then divide by 3 to see how much applies to your income tax statement and you get just R10k. With the tax exclusion being up to R70 700 you would pay no tax at all.
In fact, to begin paying income tax if you're living on just share sales, and again assuming the share made 100% growth over time, you would need to sell:
R70700x3 +100% of that amount + R30000 + in shares, for a total of R454 200
That means if you we're selling shares you could live on R37 850 before you had to pay any income tax! If you earned the same in dividens, you'd only be left with R386 070 to live on, or R32 172.50 per month.
Quite an incentive to buy low dividend growth shares!
*Admittedly I've recently started buying the RAFIND which pays R2.6% dividends over the STXIND which pays 1.4%. The dividends weren't the real reason though, as I want to pay the least amount in fees. The STXIND has 0.45% fees while the RAFIND has just 0.12%, and the performance has been very close. However, now that I'm just reading my calculations above, I'm wondering if that was the right choice.
@Mr_D, I love the storytelling, really excellent! I'm amazed to find someone who spends even less than I do per month, though I do live in Joburg and have a child.
@Moneypenny, believe it or not, my plans for early retirement are similar, though possibly more expensive. I'd like to sail around the world, stopping wherever it takes my fancy. And Monaco does take my fancy, as long as I'm not paying for a hotel room. While I would be able to go on a cheaper boat, my SO has other ideas and wouldn't settle for anything under the R1.5m mark, so I need a far bigger nest egg to maintain that
@Orca, do you pay dividends tax as a non-resident?
I believe that mathematically it makes very little difference if you take a percentage from selling shares, or the same percentage from dividends. I can see how psychologically with dividends it feels safer, but on the whole studies show it's identical. In South Africa there is a difference though. We tax dividends at 15% regardless of how small they are, while selling shares goes for capital gains tax which is a max of 13.3% but will often mean you pay no tax.
For example:
If you only have share sales and dividends as income, and you needed R120k income from a share which over time made 100%, you could sell the R120k, your capital gains would be R60k, less R30k for the exclusion, then divide by 3 to see how much applies to your income tax statement and you get just R10k. With the tax exclusion being up to R70 700 you would pay no tax at all.
In fact, to begin paying income tax if you're living on just share sales, and again assuming the share made 100% growth over time, you would need to sell:
R70700x3 +100% of that amount + R30000 + in shares, for a total of R454 200
That means if you we're selling shares you could live on R37 850 before you had to pay any income tax! If you earned the same in dividens, you'd only be left with R386 070 to live on, or R32 172.50 per month.
Quite an incentive to buy low dividend growth shares!
*Admittedly I've recently started buying the RAFIND which pays R2.6% dividends over the STXIND which pays 1.4%. The dividends weren't the real reason though, as I want to pay the least amount in fees. The STXIND has 0.45% fees while the RAFIND has just 0.12%, and the performance has been very close. However, now that I'm just reading my calculations above, I'm wondering if that was the right choice.
6987
Shares / Re: Early retirement
« on: April 20, 2015, 12:53:28 pm »
Ok did a little merging of the two topics that were all related...
6988
Shares / Re: My retirement blog.
« on: April 18, 2015, 01:03:11 pm »Very interesting reading Orca - have a ton of questions - I am in a very similar situation. Bit younger at 41 but also retired with a similar stash
And now I have a ton of questions, you should have your own thread!