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Author Topic: TFSA (2016)  (Read 20622 times)

Hamster

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Re: TFSA (2016)
« Reply #15 on: February 12, 2016, 03:01:20 pm »
See that's what gets me. If you are in this for the really long term and use your TFSA for ETFs that don't payout a lot of dividends you'll be scoring only on the 20% (or whatever it is) capital gains. If you move that out of your TFSA, take the hit at the rate it is when you need it and score on 15% dividends tax on a quarterly basis for 20-30 years, surely you'll be saving more?
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gcr

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Re: TFSA (2016)
« Reply #16 on: February 12, 2016, 03:41:06 pm »
Quote from: jonb on February 12, 2016, 02:52:45 pm


Quote from: Hamster on February 12, 2016, 02:39:45 pm
Quote from: jonb on February 12, 2016, 02:34:05 pm
@Patrick

I was under the impression all dividend tax is exempt in a TFSA ?



Here:
Quote
Deutsche Bank’s response to my question on how dividend withholding tax worked on its range of blue-chip exchange-traded funds (ETFs) was: "Section 64 (n) of the Income Tax Act provides for a rebate to be deducted from the local dividends tax payable in respect of a foreign dividend if that dividend was subject to foreign tax."[

As far as I understand that, it means the dividend taxes are already deducted in the US or wherever, so you do not get as much tax savings from holding them in a TFSA as you would by escaping the full 15% tax on dividends from local companies.

Aside from the tax issues, the MSCI World tracker is not particularly attractive from a dividend perspective since its dividend yield is only about 1.7%, placing it fairly low when ranking ETFs by their dividend or interest payouts./quote]
http://www.bdlive.co.za/opinion/columnists/2015/08/27/how-to-find-your-perfect-tax-free-saving-fund


Really interesting ! thanks for passing that on

I already sit with savings in the S&P 500 index plus some blue chips in an offshore portfolio ( dividends are taxed here as well i think ? )   however with this TFSA I am not sure if I want to go all SA at this point in time

oh well back to the drawing board ...  only a dozen or days to go before d day :)

Still think DBXWD + STXIND or a third thrown in for some stability is not a bad offering. I am however looking at this for the real long term
I concur with you on the DBXWD and STXIND - if I go into TFSA then these would be my 2 primary investments. However what I am still trying to get my head around is what the benefit of these investments would be against my present tax liability and at present it will give me no value, because I am still carrying a negative CGT with SARS - it will more than likely be neutralized this year. O ne thing I did learn last night is that you could almost use your TFSA as a trading account you would only be required to pay the transaction charges that your provider charges but if you can minimize all costs it could be an alternative to trading through a broker and running foul of SARS.
The other question is - what is the value of these TFSA's if you are not being assessed by SARS for tax but your investments are above say R 1.0 million and you are not required to submit a SARS return - to my mind there is zero benefit - so maybe put a larger portion of your portfolio in your wife's name but she should not be working
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jonb

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Re: TFSA (2016)
« Reply #17 on: February 12, 2016, 04:59:42 pm »
Not to throw a spanner in the works but has anyone looked at Coronation TFSA

Coronation Global Strategic USD Income [ZAR] Feeder ( this seems to have done well and pretty conservative for a perhaps shaky global market ? )

Coronation Strategic Income Fund  ( stable and gives solid yield )

Coronation Industrial ( roughly the same performance as STXIND )

Pros: at ;east in tricky times these can be navigated a bit vs. ETF's

Cons: A little more in costs although not much to be honest... + if you listen to SYGNIA CEO ETF's carry a bunch of hidden costs ... so
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Hamster

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Re: TFSA (2016)
« Reply #18 on: February 12, 2016, 05:05:28 pm »
Will not touch. Your TFSA is so small (relatively speaking) that it's just not worth any extra costs. Another reason so e ETFs may not be suited - TER too high
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jonb

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Re: TFSA (2016)
« Reply #19 on: February 12, 2016, 05:12:36 pm »
@Hamster

Reading some old threads

You still going for STXIND / DBXWD / PPXTEN

50 30 10

or something like that ?

.............

If you use the easy equities platform.. do you get a platform charge on top of the actual ETF charge?  doesn't that add up ?
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Patrick

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Re: TFSA (2016)
« Reply #20 on: February 12, 2016, 05:47:09 pm »
With EE there's no platform charge, just 0.25% in transaction fees. ABSA is even cheaper at 0.2%, I think they're the cheapest if the lot, so I'll be using them from note on.
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Hamster

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Re: TFSA (2016)
« Reply #21 on: February 12, 2016, 06:29:34 pm »
Quote from: jonb on February 12, 2016, 05:12:36 pm
@Hamster

Reading some old threads

You still going for STXIND / DBXWD / PPXTEN

50 30 10

or something like that ?

.............

If you use the easy equities platform.. do you get a platform charge on top of the actual ETF charge?  doesn't that add up ?
I dropped the PTXTEN in favour of more STXIND....but it is all about to change, hence the thread :)

Also, like Patrick noted, no platform charge on EE.

Also also, like Patrick said, I'm going to switch over to ABSA. If all goes well my account (TFSA and ETF Only) will be open on Monday. No monthly admin fee on those. I'll use ABSA for my long term investments and EE for some of the non ETF shares I like (AEA, NEP etc).

Why? Well two reasons.

1. EE is cheaper wrt TFSA because they subsidise a lot of the extra costs. But when their three year budget runs out and they haven't turned this into a profitable venture, what then. ABSA is almost just as cheap but I trust their longevity more. Unfortunately they do not do fractional shares which sucks.

2. The second reason I'm switching (and believe it or not, this is probably my main reason) is that I'm tired of investing on Candy Crush Investment Saga. Their block layout doesn't give me a proper overview of my holdings and that large portfolio value the people on the hill other side of town can see frustrates me.

Asked them via email, asked both the reps on MyBroadband (who asked for suggestions) and nothing came of it. Not that I consider myself important enough to be heard...but I hate their user interface and thats that.
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jonb

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Re: TFSA (2016)
« Reply #22 on: February 12, 2016, 06:42:38 pm »
@ Hamster

That is the funniest ting I have heard all week :) not wanting your neighbors to see the total amount!

you know, now that I think of it it is very candy crush! will take both yours and Patrick's notes to heart and get an ETF TFSA from ABSA

Still lost on the best mix though!

Might just keep it simple and do STXIND and DBXWD ... thinking of throwing the BBET40 in a small % just to keep Simon happy :)
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