Author Topic: What would you do with R10,000/month savings?  (Read 19551 times)

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Re: What would you do with R10,000/month savings?
« Reply #15 on: September 01, 2015, 07:18:38 pm »
Yeah I was wondering about the TFSA. Is it tax-free from all taxes including Dividend Tax and Capital Gains Tax or only Income Tax?

TFSA provide a wrapper that exempts any tax in respect of income tax (i.e. interest), capital gains tax and dividends withholding tax. 

Orca

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Re: What would you do with R10,000/month savings?
« Reply #16 on: September 01, 2015, 07:34:20 pm »
I understand your grievances but corruption is rife everywhere and parliament sessions are a circus even in the UK and Japan is the worst of the lot yet they did well until recently.
Here is a chart of the STXIND vs world markets. This is a 5 year chart and I could not use DIVTRX as it has no 5 year track record but it will outdo the STXIND.
I started here with nothing and still have most of it left.

Orca

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Re: What would you do with R10,000/month savings?
« Reply #17 on: September 01, 2015, 07:38:29 pm »
Welcome back XXXXX. Our in house tax adviser.  :TU:
I started here with nothing and still have most of it left.

Fawkes85

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Re: What would you do with R10,000/month savings?
« Reply #18 on: September 01, 2015, 07:42:36 pm »
And that chart is why an SA ETF will be my core along with a couple of the satellites. But I still want some international exposure for some peace-of-mind. Plus they can serve as Rand hedge. Thanx for all the insight though.

BTW to anyone else following this thread. Still open to other ideas as to what you would do with R10,000 a month.

Orca

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Re: What would you do with R10,000/month savings?
« Reply #19 on: September 01, 2015, 07:44:56 pm »
I could not find 2 of your ETF's but here is a 5 year chart of the others vs STXIND. I would scratch out the bottom 4. Once again, I could not use DIVTRX but it will outperform STXIND.
Thanks for the "peeked". You are correct as I was not peeking.
I started here with nothing and still have most of it left.

Fawkes85

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Re: What would you do with R10,000/month savings?
« Reply #20 on: September 01, 2015, 07:53:30 pm »
As you can see the DBXUS is not a bad choice. You mind if I ask what website you are using to get those charts?

Orca

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Re: What would you do with R10,000/month savings?
« Reply #21 on: September 01, 2015, 08:07:56 pm »
The DIVTRX would be on par with the DBXUS as it has outperformed the STXIND.
You can get the charts here for free. Just add j.j after the stock name. DIVTRX would be divtrxj.j then click on the shaded name and then click on "charts" above.
http://www.reuters.com/finance/stocks
« Last Edit: September 01, 2015, 08:17:22 pm by Orca »
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Re: What would you do with R10,000/month savings?
« Reply #22 on: September 01, 2015, 08:17:13 pm »
Welcome back XXXXX. Our in house tax adviser.  :TU:

Always lurking around....

Patrick

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Re: What would you do with R10,000/month savings?
« Reply #23 on: September 02, 2015, 07:55:38 am »
BTW to anyone else following this thread. Still open to other ideas as to what you would do with R10,000 a month.
I'd find out if there's a tax advantaged account where you are similar to an RA. If you're paying 30% tax, putting the money into something like a RA or 401k etc would give you those returns straight away. If you're in the states or UK you should be able to go with a Vanguard fund, which has some of the lowest fees around. I wish they'd open up an office locally, but I don't think there's much chance of that.

If you don't have access to any of those and do want the money in SA then I'd do a split between DIVTRX and STXIND personally. One of the reasons I still like the indi is that it's a great rand hedge: http://www.biznews.com/etfs/2014/10/09/best-satrix-options-youre-wanting-profit-rand-weakness/

The index the DIVTRX follows has had an outstanding 5 year period, and at the current prices, the dividend yield is pretty attractive too if you like income. I already own a chunk of both, more indi than DIVTRX, so currently I buy the DIVTRX every month just after payday.

Fawkes85

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Re: What would you do with R10,000/month savings?
« Reply #24 on: September 02, 2015, 08:24:41 am »
I am in Asia so unfortunately I do not have access to the Vanguard. But I am not being taxed all that much. Currently I am being taxed 3.5% of income.

Mr_Dividend

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Re: What would you do with R10,000/month savings?
« Reply #25 on: September 02, 2015, 02:52:06 pm »
I understand your grievances but corruption is rife everywhere and parliament sessions are a circus even in the UK and Japan is the worst of the lot yet they did well until recently.
Here is a chart of the STXIND vs world markets. This is a 5 year chart and I could not use DIVTRX as it has no 5 year track record but it will outdo the STXIND.

Orca, would it be possible to bring up the same chart - but converting them so that they all report in dollars or rands?

rjthomas

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Re: What would you do with R10,000/month savings?
« Reply #26 on: September 03, 2015, 07:41:11 am »
Seems a safe bet to spend 50% on ETF, and the balance on individual shares.
South African working in China since 2012

Orca

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Re: What would you do with R10,000/month savings?
« Reply #27 on: September 03, 2015, 10:56:29 am »
@Mr_Divi. Unfortunately those charts cannot do that.
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Mr_Dividend

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Re: What would you do with R10,000/month savings?
« Reply #28 on: September 03, 2015, 02:46:58 pm »
Actually, was wondering the best way to compare - working out how much R1000 could buy 5 years ago ect ect. But of course, the easiest is just to compare JSe:DBXUS vs STXIND - over 5 years, 236% vs 177%

I would hazard a guess too, that out the country, there are better ETF's to go into than the rather high fee DB funds. Not only that - trading fees are a lot lower as a bonus.

Personally, if I was out the country and needed to live on Euro/Dollars, the bulk of my money would have followed me - but probably would have left some behind to try get some of the African growth.

Fawkes85

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Re: What would you do with R10,000/month savings?
« Reply #29 on: September 03, 2015, 04:10:36 pm »
Well the reason why I send my money home to trade in SA is because, as Orca has pointed out many times, you can just get a lot more growth on the JSE as compared to the more developed countries. In his retirement blog he pointed out how on a UK blog he asked about gettin 25% per annum returns and they laughed at him. They just can't fathom getting those kind of returns on their exchanges. I have also read a couple of for dummies books and regularly listen to an investors podcast run by a guy from America and another guy from Denmark. In the books and on the podcast they continuously say that anyone that claims they can make a return of above 8% a year is full of it. Again because they come from a developed market perspective where great returns just don't happen. So that is why I send my cash back to SA.