The JSE and finance forum for South Africa
General Category => The Investor Challenge => Topic started by: Patrick on July 30, 2015, 04:33:44 pm
-
http://investorchallenge.co.za/can-you-retire-by-40/
-
I have a prob with the CGT part and posted it there. Hope I misunderstood.
-
Yep, saw and answered there. You're right, you actually have more money, but I posted the worst case scenario, but also one that get's you an unlimited amount of R30k for just R750k. In reality you can have a bigger taxable account, sell more, and still not pay CGT.
-
Yup this is surely do-able - just ask the Greeks
-
44% of voters behind but positive on catching up and nobody nonchalant, that's good. Tx P, as always.
-
Nice article :). I'm not going to make the 40 year old deadline, trying for 50.
Slight OT (ETF vs individual share holdings)
Satrix Indi top holdings
SHARE No Units Value (Rm) % of Fund
NASPERS-N 185 665 347.19 17.65%
SABMILLER 504 034 320.57 16.30%
RICHEMONT 2 573 579 251.46 12.79%
MTN GROUP 901 761 184.86 9.40%
SASOL 283 881 117.01 5.95%
I don't think it's a big leap to assume that most investors maybe be holding these shares individually. Satrix Indi ETF Fees: 0.45 to 0.75% and Easy Equities: 0.67%
Are you a Mustachian? http://www.mrmoneymustache.com/ (http://www.mrmoneymustache.com/)
-
Surely it would be better to buy a property ETF for the TFSA, as you would normally pay income tax on that, and leave the DIVTRX outside the TFSA (as you only pay 15% on the dividends). The Property ETF will also pay out a higher yield than the DIVTRX (But is subject to higher taxes), so if you can avoid the tax on that, isn't that the better option?
-
Slight OT (ETF vs individual share holdings)
Satrix Indi top holdings
SHARE No Units Value (Rm) % of Fund
NASPERS-N 185 665 347.19 17.65%
SABMILLER 504 034 320.57 16.30%
RICHEMONT 2 573 579 251.46 12.79%
MTN GROUP 901 761 184.86 9.40%
SASOL 283 881 117.01 5.95%
I don't think it's a big leap to assume that most investors maybe be holding these shares individually. Satrix Indi ETF Fees: 0.45 to 0.75% and Easy Equities: 0.67%
Are you a Mustachian? http://www.mrmoneymustache.com/ (http://www.mrmoneymustache.com/)
Yeah not a stretch at all. I've often thought about re-creating an ETF myself to save the fees. I guess it depends on your costs for rebalancing everytime you're out of sync. Maybe it's worth doing an experiment with a small amount of money to see what the costs would be. Easy Equities not having a minimum transaction fee makes me think it could be done, I'm just not sure there'd be a big saving.
Yes, I'm patrickza on mmm.
Surely it would be better to buy a property ETF for the TFSA, as you would normally pay income tax on that, and leave the DIVTRX outside the TFSA (as you only pay 15% on the dividends). The Property ETF will also pay out a higher yield than the DIVTRX (But is subject to higher taxes), so if you can avoid the tax on that, isn't that the better option?
That would be the best way to do it BEFORE retirement, as then you would be paying tax in the property ETF, but post retirement you wouldn't. As you can switch your holdings inside your TFSA it doesn't really matter, just grow your funds as fast as possible, and then structure them later.