466
Shares / Re: Earnings per share
« on: June 08, 2016, 10:41:26 pm »
Dividends declared by companies are also invariably quoted in cents - divide by 100
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467
Shares / Re: My retirement blog.
« on: June 08, 2016, 10:37:35 pm »
I don't know that I concur with the writing around the 4% rule, as it assumes that you have your retirement funds in a single pot and is really skewed towards retirement annuities. When you retire the earliest age that you can access your RA is 55 but if you don't retire at this age you can extend your RA to age 70 (currently). However if you have a reasonable pension, an RA and investments (bank investments, mutual funds and shares) then the 4% rule is not valid.
The reality is you need to look at your worldly wealth and then structure you draw downs accordingly, but, this situation doesn't just occur just before retirement it happens decades before you even reach retirement. When I retired at 58 a year before I retired my employer called me in and started discussing retirement options with me, I terminated the discussion because I had already planned my retirement some 5 years before actually taking up the offer of early retirement.
So each case is unique and it has to be strategised on an individual basis - to me there are 3/4 pillars that need to be addressed over your working life:- 1) have a pension fund 2) have an RA (new order not the crappy old order RA's) 3) have short term investments 32 days/FD's etc 4) build an investment portfolio
With this range of differing investments the 4% rule does not apply - your pension is your base monthly income and the others augment your pension giving you the flexibility to buy capital items from time to time.
I am a firm believer in ensuring that you have a good pension in place the others are what I would call top up investments which will look after you financially in the future 20/30 years down the line.
To my mind if you don't have a pension then the question arises what were you thinking in your twenties by ignoring putting in place a pension.
Those persons who don't have pensions and only have a lump sum on which they hope to sustain themselves then maybe 4% could work but it would be preferably to draw down less in the good times and then revert to 4% in the difficult times so that I the good times it boost the capital, thus allowing you to increase you monthly Rand drawing by CPI.
Personally I have all 4 pillars in place and the one investment I have a problem with is my Living Annuity as I am compelled by law to make a 2.5% annual draw down (which I would prefer not to make any draw down), as these funds I have assigned for use later in my life i.e. once I get to 80. Also I look at the other 3 pillars outside of my pension as a compensation in the event that I die that these 3 pillars more than compensate my wife for her reduced pension.
So in the final analysis its pretty much everybody for themselves but based on their unique circumstances
This is my opinion and views and it works for me - a message I have impressed on my kids
The reality is you need to look at your worldly wealth and then structure you draw downs accordingly, but, this situation doesn't just occur just before retirement it happens decades before you even reach retirement. When I retired at 58 a year before I retired my employer called me in and started discussing retirement options with me, I terminated the discussion because I had already planned my retirement some 5 years before actually taking up the offer of early retirement.
So each case is unique and it has to be strategised on an individual basis - to me there are 3/4 pillars that need to be addressed over your working life:- 1) have a pension fund 2) have an RA (new order not the crappy old order RA's) 3) have short term investments 32 days/FD's etc 4) build an investment portfolio
With this range of differing investments the 4% rule does not apply - your pension is your base monthly income and the others augment your pension giving you the flexibility to buy capital items from time to time.
I am a firm believer in ensuring that you have a good pension in place the others are what I would call top up investments which will look after you financially in the future 20/30 years down the line.
To my mind if you don't have a pension then the question arises what were you thinking in your twenties by ignoring putting in place a pension.
Those persons who don't have pensions and only have a lump sum on which they hope to sustain themselves then maybe 4% could work but it would be preferably to draw down less in the good times and then revert to 4% in the difficult times so that I the good times it boost the capital, thus allowing you to increase you monthly Rand drawing by CPI.
Personally I have all 4 pillars in place and the one investment I have a problem with is my Living Annuity as I am compelled by law to make a 2.5% annual draw down (which I would prefer not to make any draw down), as these funds I have assigned for use later in my life i.e. once I get to 80. Also I look at the other 3 pillars outside of my pension as a compensation in the event that I die that these 3 pillars more than compensate my wife for her reduced pension.
So in the final analysis its pretty much everybody for themselves but based on their unique circumstances
This is my opinion and views and it works for me - a message I have impressed on my kids
468
Shares / Re: Investment workshop
« on: June 08, 2016, 10:03:57 pm »
If the objective of those people who want to learn about investing is to create wealth over a long period then that's how you should structure your talks/exercises. If the objective is quick and flashy returns then teach them how to trade - and warn them that at least 70% of all traders fail.
Most of the transactions are conducted over the JSE read up on their offerings, Simon Brown runs his Power Hour in Joburg, Durban and Cape Town plus there are webinars, he also has a website Just One Lap - use what's out there don't reinvent the wheel. Some of the Banks run client/sponsor interactive sessions - get invites to these.
The important issue with investing directly on the stock exchange is read as much as possible, many will advocate Benjamin Graham as an almost set book - I found it boring to the nth degree
If you want to teach people how to invest then be honest, by which I mean relate you own good and bad experiences, after all investing in the exchange is all about how you learnt yourself, how you got your fingers burnt and what your winners were/are.
On the question of investing for other parties in your own name - make sure that these trusting people can get their money back i.e. insure against losses and ensure your will reflects that you owe sums of money/shares to individuals
Most of the transactions are conducted over the JSE read up on their offerings, Simon Brown runs his Power Hour in Joburg, Durban and Cape Town plus there are webinars, he also has a website Just One Lap - use what's out there don't reinvent the wheel. Some of the Banks run client/sponsor interactive sessions - get invites to these.
The important issue with investing directly on the stock exchange is read as much as possible, many will advocate Benjamin Graham as an almost set book - I found it boring to the nth degree
If you want to teach people how to invest then be honest, by which I mean relate you own good and bad experiences, after all investing in the exchange is all about how you learnt yourself, how you got your fingers burnt and what your winners were/are.
On the question of investing for other parties in your own name - make sure that these trusting people can get their money back i.e. insure against losses and ensure your will reflects that you owe sums of money/shares to individuals
469
Off topic / Re: Live chat
« on: June 06, 2016, 01:26:52 pm »
Patrick - please look at the BID/BVT split on my personal portfolio they have recorded a unit price of R 217..09 (BID) and R 84.66 (BVT) - Thanks
470
Off topic / Re: Live chat
« on: June 03, 2016, 12:09:32 pm »
The market nor the Rand/dollar rate has not moved significantly this week - since the market is all knowing, surely the downgrade has been avoided until December - anyway that's how I see it now
Oh - and just as an aside - I have put orders on to buy certain shares in case there is a significant drop in the market
Oh - and just as an aside - I have put orders on to buy certain shares in case there is a significant drop in the market
471
Shares / Re: Noob Question.
« on: June 01, 2016, 12:35:05 pm »As you are tax resident in SA, you will pay income tax on your world wide trading. You will be applying your mind and effort in SA for the trading and that is where you will be taxed.According to my ITR12 return it calls for a declaration on foreign investment interest income. Further under CGT it calls for local gains and losses in Rand, no mention of foreign CGT gains/losses over base figure. So either SARS or I have to activate foreign CGT operations. So not sure whether I really need to report activity on transactions in foreign currencies
May need to talk to a tax expert
472
Shares / Re: new to this
« on: May 31, 2016, 03:59:09 pm »
My opinion:-
Wouldn't touch either of these shares
PPC specific - there are so many cement manufactures in Africa and also large imports from China. Our economy has stalled there are very few infrastructure developments in Africa (to my mind) to invest in any of the cement manufactures. When looking at the cement industry also look at the iron industry as all industrial sites/shopping centres require rebar for building/shuttering purposes and the iron ore industry is also struggling. PPC had its haydays when the soccer stadia were being built
Wouldn't touch either of these shares
PPC specific - there are so many cement manufactures in Africa and also large imports from China. Our economy has stalled there are very few infrastructure developments in Africa (to my mind) to invest in any of the cement manufactures. When looking at the cement industry also look at the iron industry as all industrial sites/shopping centres require rebar for building/shuttering purposes and the iron ore industry is also struggling. PPC had its haydays when the soccer stadia were being built
473
Shares / Re: Noob Question.
« on: May 31, 2016, 03:47:07 pm »
It doesn't make a lot of sense to invest in locally denominated foreign shares as upon sale the proceeds are paid out in Rand even though you gain on the exchange difference.
The true way to get funds offshore is to open the required bank/broker accounts and physically move funds to these accounts - SAB gives quite reasonable limits for this purpose. When it comes to tax you are required to declare your worldly assets. The only aspect I am unclear on is whether you still have the same rules that apply regarding how long you are required to hold shares before being categorised as a trader. If there are no such restrictions overseas and all you have to do is declare your worldly assets then in theory you could trade with your overseas funds and hold you local portfolio to fit the 3 year window period to only incur CGT rather than income tax
The true way to get funds offshore is to open the required bank/broker accounts and physically move funds to these accounts - SAB gives quite reasonable limits for this purpose. When it comes to tax you are required to declare your worldly assets. The only aspect I am unclear on is whether you still have the same rules that apply regarding how long you are required to hold shares before being categorised as a trader. If there are no such restrictions overseas and all you have to do is declare your worldly assets then in theory you could trade with your overseas funds and hold you local portfolio to fit the 3 year window period to only incur CGT rather than income tax
475
Off topic / Re: Live chat
« on: May 30, 2016, 10:43:59 am »
Hi Patrick - my portfolio took a massive knock this am - due to the split in the Bidvest holdings that are in my portfolio - you need to include the food component - the codes are BID and BVT, the former being the new shares - issued in the ratio 1:1
Thanks
Thanks
476
Shares / Re: My Beginner's Portfolio Blog(Experiment)
« on: May 25, 2016, 10:48:38 pm »
Moon - I hear you, and concede that we follow different strategies to achieve our own particular goals - the end goals are thus pertinent to our own end goals. My share portfolio is not used in any sense to augment my pension, as it is more than adequate to meet all my needs and I ensure that I live off that pension without tapping into my other investments.
So circumstances dictate what strategy we follow - my reality was having to sell off some of my parents investments half yearly to meet the diminishing value of their pension and meeting accommodation and medical expenses - so in essence that was a wake up call for me. Also I am totally averse to using capital to buy anything and would rather use my bond, car loans, and overdraft to meet capital needs - but then I was a banker for 40 years so engineer loans that are beneficial to me.
I don't intend posting on this thread in the future simply because it will serve no purpose for me to express my view which may well be diametrically opposed to other investors on this forum - and what works for me may not necessarily work for others, or their circumstances. The only thing I will say is that people need strategies (review occasionally) and goals and milestones - and they will achieve what they set out to achieve
So circumstances dictate what strategy we follow - my reality was having to sell off some of my parents investments half yearly to meet the diminishing value of their pension and meeting accommodation and medical expenses - so in essence that was a wake up call for me. Also I am totally averse to using capital to buy anything and would rather use my bond, car loans, and overdraft to meet capital needs - but then I was a banker for 40 years so engineer loans that are beneficial to me.
I don't intend posting on this thread in the future simply because it will serve no purpose for me to express my view which may well be diametrically opposed to other investors on this forum - and what works for me may not necessarily work for others, or their circumstances. The only thing I will say is that people need strategies (review occasionally) and goals and milestones - and they will achieve what they set out to achieve
477
Shares / Re: My Beginner's Portfolio Blog(Experiment)
« on: May 24, 2016, 09:28:07 pm »
Moon - explain please what constitutes growth SAC today closed at R 4.96 and Woolworths R 85.69 since I last posted prices.
What growth are you referring to growth in price over a period; growth in dividends over a period; or growth in the components within the counter i.e. sum of its parts
Not trying to be confrontational - just trying to understand your statement
What growth are you referring to growth in price over a period; growth in dividends over a period; or growth in the components within the counter i.e. sum of its parts
Not trying to be confrontational - just trying to understand your statement
478
Shares / Re: My investment/retirement plan moving forward - 27 Year Old
« on: May 24, 2016, 02:44:50 pm »
Congratulations on at least addressing your future wealth creation and committing to investing. You will get diverse opinions on this forum due to the circumstances of the individuals i.e. some are still working and some are near to retirement, whilst others are retired - I fall into the latter category
Over the last number of years property has done very well for people as have industrial U/T's - I don't invest in property funds or equities, but, I do own my own house and prefer this route to rental as all rental agreements have quite steep annual escalations in rentals and levies, and, at the end of the day you have no value from/or in that rented property. You could also approach your own bankers and any bank for that matter and seem what properties they have as Properties in Possession as this can also be an avenue to getting into the property market and you are pretty sure of getting a bond from the bank especially if it is a PiP.
I too am not keen on U/T's and have sold down a substantial portion of my portfolio and have moved into equities and ETF due to them having a better fee structure.
I would review the RA you have taken out as the only people who are going to get rich are the providers - look at the fee structure and especially what internal rate of return they are achieving and what the fees will be if you extend its life i.e. the earliest you can access the RA is at age 55, but you can roll the RA over on 5 year periods to age 70 if necessary - I found that each time I rolled mine over it cost me about 3.5 to 4% in fees.
My advice to you would be to create 2 portfolios the primary one which addresses a retirement package of at least 75% of you last salary - this would require that you set aside some 23% of gross salary to achieve this. Your secondary portfolio is self managed and will compensate in the future to augment you primary portfolio which over time will be eroded through cost increases associated with being on pension. This secondary portfolio should in my opinion be invested in riskier instruments over simple bank stable investment instruments - so buy shares which have a fair bit of risk - any of the top 40 counters fall into that category. The objective of this portfolio is to grow it by between 12 - 20% p.a. but at the same time keep an eye on inflation and adjust your target growth accordingly.
Having funds offshore is another portfolio for consideration but maybe at an appropriate time you need to move funds out of your secondary portfolio for this purpose - but the reality is that you need to move these funds to a foreign currency account not a Rand denominated type account
I could probably babble on for hours on this subject but I think it is important that you map out where you want to be when you decide that its time to retire - the only hurdle that will restrict your retirement is whether you have provided for your immediate family needs and can sustain a reasonable retirement life style. Also as you get there you will find that your greatest earning potential comes between 45 and 55 so factor in this time frame into your retirement planning, and, plan your retirement - I planned mine 5 years before I actually took early retirement, otherwise you will go on retirement and end up doing nothing, vegetate and probably end up in an early grave
Over the last number of years property has done very well for people as have industrial U/T's - I don't invest in property funds or equities, but, I do own my own house and prefer this route to rental as all rental agreements have quite steep annual escalations in rentals and levies, and, at the end of the day you have no value from/or in that rented property. You could also approach your own bankers and any bank for that matter and seem what properties they have as Properties in Possession as this can also be an avenue to getting into the property market and you are pretty sure of getting a bond from the bank especially if it is a PiP.
I too am not keen on U/T's and have sold down a substantial portion of my portfolio and have moved into equities and ETF due to them having a better fee structure.
I would review the RA you have taken out as the only people who are going to get rich are the providers - look at the fee structure and especially what internal rate of return they are achieving and what the fees will be if you extend its life i.e. the earliest you can access the RA is at age 55, but you can roll the RA over on 5 year periods to age 70 if necessary - I found that each time I rolled mine over it cost me about 3.5 to 4% in fees.
My advice to you would be to create 2 portfolios the primary one which addresses a retirement package of at least 75% of you last salary - this would require that you set aside some 23% of gross salary to achieve this. Your secondary portfolio is self managed and will compensate in the future to augment you primary portfolio which over time will be eroded through cost increases associated with being on pension. This secondary portfolio should in my opinion be invested in riskier instruments over simple bank stable investment instruments - so buy shares which have a fair bit of risk - any of the top 40 counters fall into that category. The objective of this portfolio is to grow it by between 12 - 20% p.a. but at the same time keep an eye on inflation and adjust your target growth accordingly.
Having funds offshore is another portfolio for consideration but maybe at an appropriate time you need to move funds out of your secondary portfolio for this purpose - but the reality is that you need to move these funds to a foreign currency account not a Rand denominated type account
I could probably babble on for hours on this subject but I think it is important that you map out where you want to be when you decide that its time to retire - the only hurdle that will restrict your retirement is whether you have provided for your immediate family needs and can sustain a reasonable retirement life style. Also as you get there you will find that your greatest earning potential comes between 45 and 55 so factor in this time frame into your retirement planning, and, plan your retirement - I planned mine 5 years before I actually took early retirement, otherwise you will go on retirement and end up doing nothing, vegetate and probably end up in an early grave
479
Off topic / Re: Live chat
« on: May 23, 2016, 12:36:07 pm »
Well I wouldn't hold my breathe waiting for some action from Luthuli House - the entire ANC party are only adroit at handing out food parcels at election time, but have little evidence of ever landing projects which they have set in motion unless it is particularly skewed on racial lines and denial or dispossession.
Currently the ANC is a bit like the Post Office - nobody knows what they are doing and in most cases the population actually doesn't care less whether they exist/survive or perish, because they add very little value
Currently the ANC is a bit like the Post Office - nobody knows what they are doing and in most cases the population actually doesn't care less whether they exist/survive or perish, because they add very little value
480
Shares / Re: TFSA Providers
« on: May 17, 2016, 09:37:57 am »
Not sure how many on this forum have their own private portfolios with a broker firm, but I would imagine quite a few.
I got my brokers to open up another account specifically for TFSA - which they did with minimal paper work as the original documentation sits with them for my primary account.
The second account is styled a TFSA account and as such draws all the statutory minimum charges when making buy orders, but, there are no broker admin charges channeled to this account.
So for those who are looking to going in to TFSA's and have a broker account discuss with the broker the best way to run a TFSA account which will incur no admin charges (statutory charges are unavoidable), it saves on the hassle of FICA and other unpalatable legislation requirements.
I got my brokers to open up another account specifically for TFSA - which they did with minimal paper work as the original documentation sits with them for my primary account.
The second account is styled a TFSA account and as such draws all the statutory minimum charges when making buy orders, but, there are no broker admin charges channeled to this account.
So for those who are looking to going in to TFSA's and have a broker account discuss with the broker the best way to run a TFSA account which will incur no admin charges (statutory charges are unavoidable), it saves on the hassle of FICA and other unpalatable legislation requirements.