Show Posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.


Messages - erwintwr

Pages: 1 2 [3] 4 5 ... 7
31
Shares / Etoro - Anybody using?
« on: December 18, 2015, 09:23:55 am »
hi guys

international investing is becoming more and more tempting, and i saw this platform linked in a mybb post earlier today :
http://www.etoro.com/en/customer-service/fees/

The only thing that bothers me - is that i cant understand their Fee structure. the above link, if you move over to stocks, mentions :
Quote
please note: we will not charge holding fees for non-leveraged buy positions.

thus the only fee should be on trading, and also depositing/withdrawing your money.

This blog post indicates that a fee of 0.1% will be charge on buying a stock, and then $25 to withdraw $500 or more(5%). - eg withdrawing larger amounts is the only way to avoid the fee's.

http://www.savethestudent.org/make-money/stock-market-investing.html


They are obviously catered for the trading persona, allowing you to copy other traders with a % of your investment, which seems tempting as well - but i will rather buy and hold.

does any one see any other catches i might need to know about?



32
Off topic / Re: Retirement annuity - what's the consensus?
« on: December 10, 2015, 12:55:31 pm »
Quote from: JohnnyH on December 08, 2015, 07:26:33 am
Morning All

Strive, hope you don't mind me hijacking your thread, but the RA question has been haunting me for a long time as well.

Have any of you guys had a look at the offering from ETFSA-RA (attached)? Its just a bunch of ETFs, with a few familiar faces in there as well, DIVTRX, DBXWD, etc. Granted the current weightings are quite low, but still. I feel with this, I can see exactly what they hold etc.

The other main thing I like is the cost, 0.85% all in ( I think vat still needs to be added though, so could be a max of 0.97%.
If I compare this with my current RA cost of, wait for it, 3.2%!!!  :mad: I feel like I am already winning.

I do like the idea of having at least some of my money in a RA, but currently my contribution is sitting at 12%, the rest going to equities.

Comments guys?


They are a bit new on the market, but the Sygnia Skeleton 40 to 70 index funds is reg.28 compliant, and only has 0.4% fee's.

http://www.sygnia.co.za/wp-content/uploads/2015/11/Sygnia-Boutique-Fund-and-Fee-Summary-Nov-15.pdf

http://www.sygnia.co.za/wp-content/uploads/2015/11/2015-OCT-SKL70UPF-Sygnia-Skeleton-70-Fund-UPF.pdf


But yes difficult to determine who they are investing in. Hope they add it to their Fact Sheet soon :)


33
Shares / Re: Financial independence - Calculator ( Covering TFSA / Equity and RA)
« on: December 06, 2015, 02:46:27 pm »
Quote from: Samurai on December 06, 2015, 02:15:32 pm
I do admire the effort you placed into creating such a spreadsheet/calculator. Do you have a separate calc for your equity portfolio and its growth prospects including dividend reinvestments?


hmmm wont call this a calculator as such ( although i have tried implementing a scoring system based on different "rules"  (expand the top 20 rows of the sheet to see them).

Have only been running it for the past year, thus the one question still nagging in my mind is how will i do re balancing should the need arise.
Shares highlighted green is the ones i currently have in my portfolio. I try to update the fact sheet data every few months, but this one is about  three weeks old so should be more than ok.

all share performance shown includes dividend reinvestment.

Hope it helps?

https://www.dropbox.com/s/frq4dxlj00nrfeu/20151119%20share%20long%20term%20comparison%20ranking%20v3.xlsx?dl=0





34
Shares / Re: Financial independence - Calculator ( Covering TFSA / Equity and RA)
« on: December 06, 2015, 12:49:30 pm »
Update to version 4.0(6/12/2015)
* Added functionality to add retirement annuity deduction as per payslip. (caution  - this is kept constant throughout the calculator and adjusted as per your pay increases. Any other contributions towards an RA will be after tax, and tax returns will be re-invested).
Although some checks is in place, please double check that your RA deduction is not greater than the allowed SARS Tax benefit.
/* this is quite a major update - if anything strange is noted on the results, please provide feedback

* Summary screen was updated -with a total Portfolio value, and some readability/formatting.

35
Off topic / Re: Retirement annuity - what's the consensus?
« on: December 03, 2015, 07:42:07 pm »
Quote from: Strive on November 05, 2015, 07:15:07 pm
Hi Patrick

*snip*


Also, checked out that spreadsheet - that's a marvelous piece of work, and it looks like I'm in a slightly more precarious position than what I thought  :P Taxes are a bugger.


Glad i could help :)

have added a few updates in the last week or two. maybe run your numbers through it again to see where an RA will benefit you best.

As Patrick mentioned though  - high Fee's and low performance is drawbacks.

36
Shares / Re: Financial indepence - Calculator ( Covering TFSA / Equity and Retirement Anuity)
« on: December 03, 2015, 05:43:51 pm »
Update to version 3.8(03/12/2015)
* Improved summary page after some recommendations (added portfolio values at the FI year, so that you can have a visual of the values)
* Added a field to allow changing to the new RA tax benefit limit - soon to be implemented in 2016

37
Shares / Re: Replace individual shares with ETF's?
« on: December 03, 2015, 04:57:04 pm »
Quote from: indexer on December 02, 2015, 02:39:45 pm
Hi everybody

As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.

What should I do now?

1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)


+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL   |8598,00   |2,39       |-69,83|
|BGA   |15740,00  |5,82       |5,91  |
|CCO   |9560,00   |8,84       |54,47 |
|CFR   |10803,00  |8,99       |3,46  |
|GLN   |2000,00   |1,85       |-69,60|
|ITU   |7016,00   |6,49       |31,53 |
|KIO   |4272,00   |0,79       |-87,72|
|MDC   |11030,00  |6,63       |43,64 |
|MMI   |2315,00   |6,42       |-11,44|
|MTN   |14817,00  |3,43       |-34,15|
|NPN   |210616,00 |9,74       |77,25 |
|NTC   |3443,00   |3,18       |-14,18|
|OML   |4512,00   |8,35       |22,68 |
|SAB   |87400,00  |8,08       |42,84 |
|SHF   |8550,00   |7,91       |17,45 |
|SOL   |40072,00  |5,56       |-27,46|
|WHL   |9955,00   |5,52       |23,68 |
+------------------------------------+




Lots of losses in that list.


If you are adding to the portfolio (monthly for the last 2 years, i would say just adding new contributions to an ETF should be ok.


If the initial investment was very large, i would think option 2 ( eg sell shares with gains, or shares with losses that doesn't look like they will recover.)


38
Shares / Re: Wait. ETF sales are ALWAYS taxed as CGT?
« on: December 03, 2015, 04:40:39 pm »
This is quite interesting news.


Will make tax submissions a bit easier - was always afraid that me testing the waters on a few ETF's before settling on my current portfolio will have an impact on taxes paid.


constant CGT on ETF's will be awesome!

39
Shares / Re: TFSA vs RA vs Satrix - Calculator
« on: November 30, 2015, 07:18:54 pm »
Quote
Hmm, ok I understand that & why you did it that way, and that it's a way to reverse engineer using those  numbers because who in reality can save 100% of their salary. But would you somehow be able make it work without the "reverse engineering"only when you input 100%, for someone that wants to be able to commit 100% or through other means can do so(lets pretend they can live without touching their earned salary during this growth phase  8)) but with an expectation that after FI is reached they want that income inputted in "Monthly Spending buffer after FI" without it affecting the calculation? Hope that makes sense? You see the idea is the 900,000k "Once off spending buffer at FI" is to settle a rental property for instance that will then provide another portion of income, hence the lower "Monthly Spending buffer after FI" figure :) which will complement this income to make up for the "real" requirement once FI is reached.


Please excuse my ramblings above - Spend a long a day flying yesterday, thus a few brainfarts later resulted in the above :P

taking your numbers through the calculator again (avoiding the 100%) :

Inputs :





Outputs:






Thus you should be able to safely achieve FI after 3 years ( or even less due to rental income). at 55 you will have R5000 + R2594 available to spend + rental income.
Keep in mind that the calculator assumes your only expense is R5000 and nothing more (Inflation adjusted obviously)

i would however recommend that you push inflation to a more comfortable value (maybe 8%?), but even then rental income should provide a nice buffer.

If you need to refer to any other numbers please feel free to ask/recommend :)







40
Shares / Re: TFSA vs RA vs Satrix - Calculator
« on: November 29, 2015, 11:33:08 pm »

Quote
Have I said how cool this spread sheet is again? Been wanting something like this for ages, and too dumb with excel to be able to do it myself  :-[
Lol - happy it is helping you :) - many ideas went into it - hoping to keep it as close to real life scenario's as possible


Quote
Thanks. Adding the value of the investment on the summary page would be way cool  ;D
Is there somewhere in the sheet to see what the monthly contributions to RA, TFSA(R2500) and Equity contributions are monthly/annually till FI is reached based on the inputs? This just to verify how close this is to reality.

hmmmm  - this goes much deeper into the inner workings of the sheet. this does not stay constant, especially considering the different investment strategies.

(my whole idea behind the calculator was due to RA's having lower returns than equities- even on  monthly basis. Thus  pushing more cash into a 20% equity return, does it have a better financial gain than sending cash into your RA first?
anyhow - if you really like looking at the numbers, go to each sheet, and look at Row 283 onwards. This gives the value of the investments and how much is added to each ( columns F , I  and K) ,and the resulting value after that month's interest (columns G J and L).

Dont think that can be summarized (expenses inflation vs salary increases is not supposed to stay the same which is why i seperated it on the inputs).
eg
year one

expenses 5000
savings 15000
salary 20000

year two
expenses 5000 + inflation (6.1%) = 5305
savings  = salary minus expenses = 16695 = 11.3% higher
salary 20000 (+10% increase) = 22000


Quote
Hmm, ok I understand that & why you did it that way, and that it's a way to reverse engineer using those  numbers because who in reality can save 100% of their salary. But would you somehow be able make it work without the "reverse engineering"only when you input 100%, for someone that wants to be able to commit 100% or through other means can do so(lets pretend they can live without touching their earned salary during this growth phase  8)) but with an expectation that after FI is reached they want that income inputted in "Monthly Spending buffer after FI" without it affecting the calculation? Hope that makes sense? You see the idea is the 900,000k "Once off spending buffer at FI" is to settle a rental property for instance that will then provide another portion of income, hence the lower "Monthly Spending buffer after FI" figure :) which will complement this income to make up for the "real" requirement once FI is reached.


ah hmmmm. yes investment properties is a completely different ball game. unfortunately, my initial thought is that in the current state the calculator cant cater for this - too many variables ( rental income in x years will be ??. Rental expenses in x years... etc etc.)  - Tax to be paid due to rental income in x years = ??.

dont think its feasible to reverse engineer current input values(my personal feeling from rental properties ( Thank you Patrick :P), is to avoid them like the plague. Rather choose a REIT fund. but yes that's just me.

Thus my best recommendation then for now is to leave the 900k once of buffer in equities ( eg change buffer to 0). The calculator will then use the cash available in equities to show you salaries possible from that amount.



41
Shares / Re: TFSA vs RA vs Satrix - Calculator
« on: November 29, 2015, 08:46:32 pm »
Quote from: Nios on November 29, 2015, 06:48:46 pm
Overwhelming is an understatement  ???  :D

I'm trying to figure a few things out, if you don't mind me asking?
-Where do you see the values of each vehicle after the various FI periods invested?
-When I input 100% of salary, it messes up the calculations somewhere and doesn't output the data in the 4 Results(FI test after X Years) as per attached. You know why?


never  a bad question :).
seems like you uncovered a possible bug added recently, i will try and correct it when time allows. Trying your values, the Div/0 error comes in when you enter the homeloan and car values. For now make it R100 per month for a year -  it should be basically ignored for most of the calculations.


Quote
Where do you see the values of each vehicle after the various FI periods invested?
If you want to see the value of the investment at certain periods, you will need to go to the worksheets - unfortunately the summary page shows the salary that can be drawn from that investment ( a further step down the line)

in all sheets this is located at a row labelled current

F:29,G:29,H:29 for the first period (after 5 years in your example - seems like i left it highlighted yellow just below , so should be easy to locate)
F:78,G:78,H:78 for the second period (10 years)
F:127,G:127,H:127 for the third period (14 years)
F:176,G:176,H:176 for the last period  (19 years)


Quote
When I input 100% of salary, it messes up the calculations
a note on this - the calculator takes the reverse of the 100% to determine your current living expenses ( expenses + savings = salary). Thus savings will/should always be less than 100% ( unless you got a big heritage somewhere :P )

sample output follows :
this takes savings as 90% ( thus expenses per month is +-R5193 initially)

42
Shares / Re: TFSA vs RA vs Satrix - Calculator
« on: November 26, 2015, 09:27:55 pm »
Quote from: Nios on November 26, 2015, 07:54:15 pm
What a great piece of work erwintr. Thanks very much for sharing.

only a pleasure :)


i know it can be a bit overwhelming, but read through the comments where needed for clarifications. Any questions is welcome though.

43
Shares / Re: TFSA vs RA vs Satrix - Calculator
« on: November 19, 2015, 04:05:46 pm »
Update to version 3.7(19/11/2015)
* improved a formula to be more accurate for monthly interest(This was workbook wide, thus affects all totals)

44
Shares / Re: Interesting presentation from ABSA stockbrokers last night
« on: November 09, 2015, 04:28:00 pm »
interesting update Patrick.

Thx for sharing!

45
Shares / Re: Opinions on this fund
« on: September 15, 2015, 07:52:36 pm »
Quote from: Fawkes85 on September 15, 2015, 07:15:16 am
8% fees???? Is that normal for mutual funds/unit trusts/these kinds of funds?

mostly due to compound interest i think, but yes it is mostly the case. See patrick's blog post for better comparisons http://investorchallenge.co.za/those-fees-are-blatantly-robbing-you/

my rough calculations - still pending confirmation from discovery.

my rough calculations :

Quote
R100,000.00  - lumsum intial fee of 1.75% = 98,250 invested


grows to 142,462.5 after 5 years
subtract annual fee's ( 0.75 x 5 = 3.75%) = 5342.33 = R137,119.68

CGT applied : R137,119.68-R100,000.00 = R37 119.68 x 0.15 = 5567.96

Thus amount in bank account after 45% growth is roughly R131,551.04 - tax paid.

45% growth over 5 years is about 9% compounded annually... not that good.

Pages: 1 2 [3] 4 5 ... 7