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Blog post: You need a TFSA and here is the only place you should get one

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willemm:

--- Quote from: Patrick on May 18, 2018, 01:00:59 pm ---The TER will have a greater effect than the spread. A 1% spread means you're overpaying by 0.5% (or underselling by 0.5%) If we assume the market will go up by 12% per year perfectly linearly then the spread will be taken care of in 2 weeks.

Even though I'd love it to be lower, it doesn't bother me.

--- End quote ---

Yeah, I totally agree. Although, I do think that this specific cost to the investor (seemingly mostly for the market maker service) should and could easily be disclosed in the minimum disclosure doc so that you are aware of the wide spread. Some of these spreads are totally out of hand - and I'm starting to see Magda's (from Sygnia) point from a few years back of ETF vs Unit trusts (passive UTs). As I understand it, if you buy a UT after market close you buy/sell at exact NAV - and without hoping there is a market maker (and more importantly hoping it's a cheap one :) )

kavesh:
Guy, what are your 2020 thoughts on type of TFSA one should look for. With so much volatility at the moment, one is tempted to go with cash at 6.89% with investec.
In the longer term ETF's should out perform cash by a mile, question is which ones to pick now.
Also do you guys prefer the rand cost averaging method, i.e. fixed amount invested monthly or a lump sum upfront?

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