Share Forum - Discuss JSE shares and join the Investor Challenge

Quote from: gcr on July 17, 2014, 11:41:38 am

...all dividends are used to purchase shares and when I can afford it I put more funds into my trading account by juggling my current account, card accounts, and bond account.

Sorry for dragging up all old post... you mentioned having a bond account and it got me thinking about your investment strategy. 
I thought zero debt and then invest was the way to go.  Care to comment?

My investment strategy could only be described as peculiar. It has 3 end objectives a) dollar millionaire b) have a portfolio of shares that upon my death ahead of my wife and my pension being reduced by 50% that the portfolio would provide an income to offset this reduction even if my wife stuck all the funds into a simple fixed deposit (which she is likely to do). At present my portfolio would give 97% of that objective based on my gross pension. c) to hold at least the equivalent of 30% of my total wealth offshore as a back up plan.
Presently I have facilities in place which I can tap into like current account, 2 card accounts and my bond where I can take close to R 200,000 quite rapidly if I needed to, this I may do from time to time if I want to, to buy a parcel of shares, I generally use my bond which has a limit of R 100,000 and my current account - both have low interest rates. This last year instead of buying shares I reduced my car loan commitment by R100,000 from my bond and current account plus some R50,000 accumulated savings. Next July I will do the same using the same bond and current account and some accumulated savings. In this fashion I want to pay my car off in 3 years even though I financed it over 72 months. In my case I paid my bond off fully before I retired 10 years ago, but I challenged my bank when they wanted to close off my bond at age 65 - I now have a bond to age 75. So in essence though I am a very serious investor I also juggle my funds around, and, I use the banks funds to meet short term objectives. As to debt both my cards are zeroed each month on payday, I subscribe to MNet, MWeb, have insurance for my car and home have no life insurance policies as all of my policies were endowment policies which paid out when I turned 55 - I lock in my LA proceeds into a Coronation T 20 mutual fund and all my insurance policy and the RA funds premiums that I was paying are now directed into the same U/T. Having watched my parents pension and medical expenses diminish on the one hand and escalate on the other my focus is to ensure that my life style as I have it now is not compromised when I get to my 80's and 90's (history of longevity in my family)
So this is not a particular strategy but more of trying to seek out the big picture and to plan accordingly knowing full well that the market is going to rise and fall depending on what's happening in the world around us   

Yup this is surely do-able - just ask the Greeks

Interesting to see how smokers have quit. In the late 1980's I stopped smoking for a year, but unfortunately went to an all afternoon lunch at a German restaurant and smoked cigars at the end of the meal, which started me smoking all over again. Then in 1990 when I completed my EDP at USB I resolved that that night at the passing out dinner I would give up smoking. At that stage I was smoking +/- 60 Texan plain a day, well it took me 2 days to give up - the withdrawal symptoms were horrendous, but the good side of it is I never touched another cigarette again. Also I can drink with smoker friends and am not irritated by the smell of their cigarettes, and many is the time that think of taking a drag but resist. Some of the most pleasant smells is that of a cigar or a pipe somehow the smell of these two are quite intoxicating

May be as a result of Africa Bank?

The point I am trying to make here is that these shares are not held by you in a foreign currency with an overseas broker. What I am putting in place is that my local broker opens an elected currency account with a London based broker. My broker will physically move my funds offshore to this broker and I will be able to (over the overseas brokers platform) see my platform in a similar fashion as my local brokers platform. The hurdles I am trying to deal with are that if I wish to buy or sell out of my overseas portfolio then I have to instruct my local broker to effect the instruction. I can't place my buy/sell orders with the LSE in the same way I can with the JSE. This is not an insurmountable problem as my intent is to buy and hold for the long term. I am still in the process of resolving where I will get taxed on sales UK or SA as I don't foresee that I will bring the funds back to SA for many years - if ever. Also my local broker will impose charges each time they remit funds overseas for me and I am trying to establish whether there is a fee levied by my local broker (when I give an instruction to buy/sell) for handling the transaction instruction. There are also other considerations - in SA if you transact too frequently you could be treated by SARS as a trader - need to know whether the UK have similar rules. CGT is another issue as I may have to register as a UK taxpayer and get a tax number.
As I say at an early stage of my investigations and just need to get my ducks in a row so to speak

My stocks gave me a  pakslae today but MTA kept me buoyant with over 4% gain.

The whole market took a hit today my portfolio dropped R 64,000 but over the last 2 weeks it gained by about R 120,000 so swings and roundabouts

Well if one looks at the DBXUS its gross foreign dividend and other income earned works out to .24823 cents per unit with a .10134 cents per unit management fee - which is some 40.8% of gross income of per unit, and withholding tax taking 14.77%.
My point is that this investment is probably not an investment to invest in if one was looking for dividend streams as a means of support over the long term