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Author Topic: Blog post: Can you retire before 40?  (Read 15253 times)

Patrick

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Blog post: Can you retire before 40?
« on: July 30, 2015, 04:33:44 pm »
http://investorchallenge.co.za/can-you-retire-by-40/
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Orca

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Re: Blog post: Can you retire before 40?
« Reply #1 on: July 30, 2015, 05:56:06 pm »
I have a prob with the CGT part and posted it there. Hope I misunderstood.
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I started here with nothing and still have most of it left.

Patrick

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Re: Blog post: Can you retire before 40?
« Reply #2 on: July 30, 2015, 06:03:00 pm »
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.
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gcr

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Re: Blog post: Can you retire before 40?
« Reply #3 on: July 31, 2015, 10:32:22 am »
Yup this is surely do-able - just ask the Greeks
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Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Moneypenny

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Re: Blog post: Can you retire before 40?
« Reply #4 on: July 31, 2015, 03:26:11 pm »
44% of voters behind but positive on catching up and nobody nonchalant, that's good. Tx P, as always.
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tmsf12

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Re: Blog post: Can you retire before 40?
« Reply #5 on: August 03, 2015, 09:25:45 am »
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/
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JStrike

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Re: Blog post: Can you retire before 40?
« Reply #6 on: August 03, 2015, 02:15:06 pm »
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?
« Last Edit: August 03, 2015, 02:27:03 pm by JStrike »
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Patrick

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Re: Blog post: Can you retire before 40?
« Reply #7 on: August 03, 2015, 05:35:27 pm »
Quote from: tmsf12 on August 03, 2015, 09:25:45 am
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/
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.

Quote from: JStrike on August 03, 2015, 02:15:06 pm
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.
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