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Author Topic: Blog post: Let's all be guilty of tax avoidance  (Read 16154 times)

Patrick

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Blog post: Let's all be guilty of tax avoidance
« on: May 05, 2015, 08:56:09 am »
Tax avoidance for all: http://investorchallenge.co.za/lets-all-be-guilty-of-tax-avoidance/
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Moneypenny

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #1 on: May 05, 2015, 09:19:16 am »
Definitely something to add to your investment portfolio, thank you for investigating and sharing P.
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Mr_Dividend

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #2 on: May 05, 2015, 09:37:13 am »
One of the nicer articles on TFSA's around - but would have mentioned ETFSA offering - which looks reasonable for guys wanting to invest monthly.

People putting it into cash based saving accounts - so sad, yet you know with all the advertising going on, they will take the bulk of the money.

I wonder how money the average person looses over a lifetime because of a lack of even basic financial ideas and concepts. Like my mother in law - has had all her retirement money in a fixed deposit for the last 5 years. Unbelievable. Yet she's quite clued up on the lives of random celebrities. Way to spend you time MIL.

 :(
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Patrick

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #3 on: May 05, 2015, 10:49:34 am »
Thanks all.

I looked at ETFSA, but they're too expensive for my taste. Here's their published fees:
Quote
Rate per annum
Financial Adviser and Portfolio Management Fees            0,5% (incl. VAT)
Administration and Custody Fees                        0,5% (incl. VAT)

In addition, the transaction fees applicable to the purchase and sale of the ETF securities will be borne by the investor.  This fee amounts to 0,1% of the value of the transaction, plus any handling, settlement and JSE/STRATE charges, which fees are “bulked” amongst all investors and therefore likely to be negligible.
The 0.1% per transaction is lower than easy equities, but the 0.5% + 0.5% doesn't exist on EE making it far cheaper in the long run.
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Mr_Dividend

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #4 on: May 05, 2015, 10:54:22 am »
True Patrick - but it really would need to compared to EE fully managed strategy - as yet not available. As said, for the monthly debt order guys.
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jaDEB

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #5 on: May 05, 2015, 12:57:38 pm »
nIcE ...   :TU:
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jaDEB

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Pluto

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #6 on: May 06, 2015, 03:14:00 pm »
Thanks Patrick!

That is an awesome explanation of how things work, best one I've seen.

Can anyone explain why everyone says you should put money into a retirement fund, as in the article ... but it doesn't seem like many people do it?

Most of us have put up details of our investments in this thread, http://shareforum.co.za/shares/what-investment-instruments-do-you-use/, but not one person has mentioned retirement funds, yet ...  :question:

Is it just that everyone assumes they can out perform a RA with whatever else they are doing?
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Mr_Dividend

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #7 on: May 06, 2015, 04:52:19 pm »
RA's have to be section 28 compatible - which means a max of 75% in equities. But many are conservative balance funds - so some have less. Then you have management fees. That said, have heard of a Sanlam RA that has 75% equities and 25% listed property.

Of course, you do score with the tax, depending on your tax bracket, anything from 18 - 41% - a huge plus.

Personally, if I earned a decent salary I would make sure I maxed (15%) my RA allocation into the most aggressive funds that I could as well as my R30K TFSA. I stopped contributing to my RA - as it only gave me 9% last year - and  my tax situation has changed.
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Patrick

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #8 on: May 07, 2015, 09:36:19 am »
Quote from: Pluto on May 06, 2015, 03:14:00 pm
Most of us have put up details of our investments in this thread, http://shareforum.co.za/shares/what-investment-instruments-do-you-use/, but not one person has mentioned retirement funds, yet ...  :question:

I have a pension fund through the office. They also match contributions so it would be really stupid not to have it. I didn't add it to my investment list as I had no decision in how it's managed, and I don't plan to touch the money until I'm 62 when I'll draw funds annually.
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Keshal

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Re: Blog post: Let's all be guilty of tax avoidance
« Reply #9 on: May 07, 2015, 10:40:53 am »
Thank you very much Patrick...this is an awesome post....I noticed these tax free investments but was too lazy to research them myself :o
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