6076
ECSP6 103.56 cents - LDT: 6 Nov 2015
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6080
Shares / Re: What to do with some extra cash?
« on: October 29, 2015, 11:28:55 am »R30k per person, so wife and kids help
I didn't see the OP mention a family. Does this count as insider trading?
No, I don't actually know him, so it was a guess!I think the goal is to not pay tax, so max the RA first, then do the TFSA. Erwintwr did a big fancy calculator that worked out which was most effecient depending on your tax bracket, but if the OP is in the top bracket it's almost certainly going to be wise to max the RA then do a TFSA. The rest I'd put into the bond for a guaranteed return.
Here's the calculator thread: http://shareforum.co.za/shares/tfsa-vs-ra-vs-satrix-calculator/
6081
Shares / Re: What to do with some extra cash?
« on: October 29, 2015, 10:18:31 am »The maximum amount that you can contribute to your pension/provident/RA (in total) is 15% of your gross income.R30k per person, so wife and kids help. I'd also put 15% into a good RA. I quite like sygnia.
15% of R450 000 = R67 500
You also said:QuoteJust R200,000 in a TFSA.
Your annual limit for a TFSA is R30k. You will be taxed (40%) for going over that limit.
6082
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: October 28, 2015, 08:29:31 pm »
I ran into this. You can call them and do the trade over the phone.
6083
Shares / Re: What to do with some extra cash?
« on: October 28, 2015, 03:36:15 pm »First, have you open your TFSA (Tax Free Savings Account), with the 30K limit?
Yes that, and one for your wife and one for each of your four children, the last R20k can go to the bond
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Shares / Re: Early retirement
« on: October 27, 2015, 02:54:39 pm »Try this website its american but some princples stay the same, http://www.dividendmantra.com/I quite like Dividend Mantra, and think Jason is a great guy and excellent writer, but his investments have done worse than the S&P 500 over time, so he would actually be wealthier now without putting in all that effort... The same holds true for Donald Trump. Apparently if he invested his inheritance in the S&P500 and sat home watching Jerry Springer he'd be twice as wealthy as he is now! But yeah, great blog, and a great way of thinking about building wealth.
As far as I understand only ETFs are allowed in TFSAs. So what you can do is buy into the PTXTEN or the PTXSPY. Both those ETFs are only invested in REITs but their dividend yields are not much to write home about.Don't buy PTXSPY, it's got a TER of 0.58% when you can get the Stanlib SA property index which does exactly the same thing and has a TER of 0.36%. The difference in fees gets taken off the dividend payout, so the stanlib sapy will pay you more.
Problems like this really interest me Ron. I've seen too many people I know get retrenched and end up literally having to beg at their families door for a place to sleep and some food to eat. So for the last 10 years or so, I've often played a game of what if I lost my job now.
My retiring at 40 blog post is pretty much the way I would handle it if I was in your situation: http://investorchallenge.co.za/can-you-retire-by-40/
I would try and do is reduce costs though. Housing is probably sucking up the most of your cash, would you consider taking a housemate, or renting a room somewhere? Depending on the circumstances, I'd even live on a cheap boat, or even in a van, but I'm extreme that way.
If I wasn't sure my money would last forever I'd also pick up an easy, fun job. I used to be a barman when I was a student, and even then I could make R5k a month, and that was 15 years+ ago.
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Shares / Re: Early retirement
« on: October 27, 2015, 11:10:11 am »This thread speaks directly to me in discussing my present dilemma of trying to rebuild a portfolio, having recently sold (ie "locked in losses") a heavy exposure to resource shares in Aug (plus a couple of winners which suddenly looked expensive... not a proud moment).Mr Div was actually the first one to highlight DIVTRX here, so send him your cheque. GCR is right, it's all relative to your situation. If you do decide to go see a financial adviser, make sure you pay them by the hour, and not a % fee, otherwise you WILL get screwed in the long term.
Should I be focusing on growth or dividends? The instinct to "swing for the fences" to recoup my losses has finally been tempered by weeks of indecision (ha ha) - although growth remains my bias, while keeping 3 years living expenses aside (by way of introduction, I lead a lifestyle remarkably similar to Mr Dividend)!
To sum up points already made, peace of mind will cost you either way: lost opportunity costs on the cash set aside, or lower capital growth. I have put some money into the DivTrax ETF which seems to strike a middle ground... comm on its way Patrick!
Unfortunately as may have been pointed out, dividend income is a more tax efficient income stream than selling shares, at least within 3 years - as you'd be regarded as a trader and taxed at your marginal rate. Then there's stockbroker fees...
Any further thoughts from the community would be welcome.
With some reading though, you could pick up pretty decent knowledge, which is quite satisfying.
Are you also no longer working? How did you manage that?
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Thanks Orca, it would be great if you could post it. In the meantime I did find some good news. Apparently the fact that the two accounts are separate counts in my favour, so the Unit trust account can be deemed for investing, and the stockbrokers account deemed for trading, and then it all works out.
Also it looks like SARS has adderssed this here: http://www.sars.gov.za/FAQs/Pages/781.aspx
So it looks like I can finally get out of my stupid unit trust, and not take a huge hit! The only thing I'll have to make sure of in future, is that I don't sell any shares for profit in the next three years, as those will then also be considered trading gains. Not that I plan to, all I hold now is STXIND and DIVTRX, and I plan on holding those for a very, very long time.
Also it looks like SARS has adderssed this here: http://www.sars.gov.za/FAQs/Pages/781.aspx
Quote
Can an assessed loss – as opposed to an assessed capital loss - be set off against a taxable capital gain?
Yes. Some commentators have questioned this point because a taxable capital gain is included in taxable income. The definition of the term “taxable income” in section 1 provides as follows:
“taxable income” means the aggregate of—
(a) the amount remaining after deducting from the income of any person all the amounts allowed under Part I of Chapter II to be deducted from or set off against such income; and
(b) all amounts to be included or deemed to be included in the taxable income of any person in terms of this Act;
It is evident from this definition that taxable income can be a negative figure. Paragraph (a) would become negative when the amounts allowed under Part I of Chapter II exceed the income of a person. Furthermore, Part I of Chapter II includes section 20 which deals with assessed losses.
The intention of the legislature can also be seen from the amendments to section 103(2) which provides that a ‘tainted’ capital gain cannot be set off against an assessed loss. These amendments would not have been necessary if a taxable capital gain could not be set off against an assessed loss.
So it looks like I can finally get out of my stupid unit trust, and not take a huge hit! The only thing I'll have to make sure of in future, is that I don't sell any shares for profit in the next three years, as those will then also be considered trading gains. Not that I plan to, all I hold now is STXIND and DIVTRX, and I plan on holding those for a very, very long time.