48 min
Your questions - part two (#171) The Fat Wallet Show from Just One Lap
-
- Education
In this second instalment of my Holiday Show Load, we are not nearly so clever. We tried to push through as many questions as we could, but you know how chatty we get!
This is the Double Jenny episode, which delights me no end. We discussed some of the things Jenny the First can do to choose the right ETF for her. If you find yourself in a similar position, you can find some more tips on making this choice by reading the below articles:
Comparing ETFs: Costs
Comparing ETFs: Asset classes
Comparing ETFs: Methodology
Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Maryanne
If I check on the ETFSA site the TER for my Sygnia ETF is .6 &.8 % pa.
When I look at my statement I pay TER & management which is more like 1% . When I asked why so much for a passive fund I was told DBX charged the same.
Margaret
SARS want to know your net gain/loss as well as your capital gain/loss. Could you explain the difference between these?
I have a TFSA with Sygnia and Allan Gray. The Syngia IT3 gives me interest, dividends and capital gain/loss. The Allan Gray. Gives me net return, interest, dividends and capital gain/loss.
Allan Gray had this explanatory note that they owned the underlying investments, so the tax implications accrue to Allan Gray. Given the whole point of TFSA is that you don't have tax implications. Can you explain what's going on here?
Jenny
I recently opened a brokerage account and bought a couple of ETFs. I’m a newbie and need a little advice on my portfolio.
I bought:
Satrix MSCI world The Satrix S&P 500 The Satrix Nasdaq 100 Ahsburton Global 1200 Sygnia msci US Sygnia 4th industrial rev I am invested in property in South Africa and am looking for global exposure.
I was just wondering if it’s wise to put money into all these different ETFs of which some are very similar.
Would it be better to cut down and rather put more money into one?
What should I do going forward with the ones I have?
I invested in tax-free savings account. I’d like to open a normal investment account soon, but I’m not sure how many ETFs to choose?
Jenny
I will be receiving some inheritance in the near future - R3m.
I feel a responsibility to look after it and make it grow and not blow it on a bad investment.
I am 44 and I have a bond on my home of R1.5m.
I don’t necessarily have to pay my bond off with my inheritance as I rent it out, so I can deduct the interest from my rental income for tax savings.
I am invested in property in SA so would like international exposure. Do you think I can invest it all in two or three ETFs like the Satrix s+p 500 and msci world. Would this be a good idea or do you have any other ideas on what I could do?
Santosh
From my experience, this can be accomplished via direct dividend paying shares, or buying a Dividend ETF like the Satrix DIVI.
The other is to buy mutual funds that pay income on a bi-annual or quarterly basis. These will pay different amounts depending on what's invested and hopefully will cover all expenses during the course of a year.
At a 5.5% typical bond fund yield, around R4.4M is needed in capital and if we assume 20% goes in tax, we'd need R5.45M to be comfortable.
I'm not accounting for inflation as I'm assuming the capital will never be touched, so it will move "up" hopefully with the underlying unit price. I'm further assuming that the "Cents per unit" paid will increase with time and thus account somewhat for inflation (I know this is a risky bet!)
Do you agree ?
What would be your suggestions for the best funds to use for this purpose, excluding property.
If RSA goes to junk, the yields will increase, which will mean a good regular return if bonds are used as an investment and as the prices will fall, one can buy more bonds for an even larger "income".
IF this is true, why invest in anything else but bonds? Am I correct in the above thinking, or am I being too simplistic.
We discuss income ETFs h
In this second instalment of my Holiday Show Load, we are not nearly so clever. We tried to push through as many questions as we could, but you know how chatty we get!
This is the Double Jenny episode, which delights me no end. We discussed some of the things Jenny the First can do to choose the right ETF for her. If you find yourself in a similar position, you can find some more tips on making this choice by reading the below articles:
Comparing ETFs: Costs
Comparing ETFs: Asset classes
Comparing ETFs: Methodology
Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Maryanne
If I check on the ETFSA site the TER for my Sygnia ETF is .6 &.8 % pa.
When I look at my statement I pay TER & management which is more like 1% . When I asked why so much for a passive fund I was told DBX charged the same.
Margaret
SARS want to know your net gain/loss as well as your capital gain/loss. Could you explain the difference between these?
I have a TFSA with Sygnia and Allan Gray. The Syngia IT3 gives me interest, dividends and capital gain/loss. The Allan Gray. Gives me net return, interest, dividends and capital gain/loss.
Allan Gray had this explanatory note that they owned the underlying investments, so the tax implications accrue to Allan Gray. Given the whole point of TFSA is that you don't have tax implications. Can you explain what's going on here?
Jenny
I recently opened a brokerage account and bought a couple of ETFs. I’m a newbie and need a little advice on my portfolio.
I bought:
Satrix MSCI world The Satrix S&P 500 The Satrix Nasdaq 100 Ahsburton Global 1200 Sygnia msci US Sygnia 4th industrial rev I am invested in property in South Africa and am looking for global exposure.
I was just wondering if it’s wise to put money into all these different ETFs of which some are very similar.
Would it be better to cut down and rather put more money into one?
What should I do going forward with the ones I have?
I invested in tax-free savings account. I’d like to open a normal investment account soon, but I’m not sure how many ETFs to choose?
Jenny
I will be receiving some inheritance in the near future - R3m.
I feel a responsibility to look after it and make it grow and not blow it on a bad investment.
I am 44 and I have a bond on my home of R1.5m.
I don’t necessarily have to pay my bond off with my inheritance as I rent it out, so I can deduct the interest from my rental income for tax savings.
I am invested in property in SA so would like international exposure. Do you think I can invest it all in two or three ETFs like the Satrix s+p 500 and msci world. Would this be a good idea or do you have any other ideas on what I could do?
Santosh
From my experience, this can be accomplished via direct dividend paying shares, or buying a Dividend ETF like the Satrix DIVI.
The other is to buy mutual funds that pay income on a bi-annual or quarterly basis. These will pay different amounts depending on what's invested and hopefully will cover all expenses during the course of a year.
At a 5.5% typical bond fund yield, around R4.4M is needed in capital and if we assume 20% goes in tax, we'd need R5.45M to be comfortable.
I'm not accounting for inflation as I'm assuming the capital will never be touched, so it will move "up" hopefully with the underlying unit price. I'm further assuming that the "Cents per unit" paid will increase with time and thus account somewhat for inflation (I know this is a risky bet!)
Do you agree ?
What would be your suggestions for the best funds to use for this purpose, excluding property.
If RSA goes to junk, the yields will increase, which will mean a good regular return if bonds are used as an investment and as the prices will fall, one can buy more bonds for an even larger "income".
IF this is true, why invest in anything else but bonds? Am I correct in the above thinking, or am I being too simplistic.
We discuss income ETFs h
48 min