advice on TFSA

maqsmaqs

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Aug 13, 2017
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#1
good afternoon all
i am a non SA resident in SA and i have been told i can open a TFSA
i am about to send in paperwork for my permanent residency so am hoping to put funds into a TFSA here

which TFSAa would you recommend me investing into

have limited investment knowledge but hoping to get some good advice on here
 

lsheed_cn

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#4
TFSA max tax free contribution is R 500k, thats not much in real currencies.
The yearly limit of R33k is also peanuts, I personally wouldn't bother. I'd suggest keeping money in real currencies not mickey mouse ones. You'll gain more long term.
 

Hamster

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#5
TFSA max tax free contribution is R 500k, thats not much in real currencies.
The yearly limit of R33k is also peanuts, I personally wouldn't bother. I'd suggest keeping money in real currencies not mickey mouse ones. You'll gain more long term.
Peanuts to the fortunate yes, but for most saving R33k pa is unrealistic. So let's continue this thread dismounted from our highly rich horses.

You should take advantage of every tax break you can. And if you want you can buy USD/EUR etc. trackers in the ETF so you really do not need to be exposed to our "Mickey Mouse" currency even though with our higher interest rate you'll probably gain more.

Timeframe? What do you want the money for? Boosting retirement?
Personally, if you don't use the TFSA for retirement savings it's a waste. Your real gains are going to come 20+ years after you started.
 

lsheed_cn

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#6
Peanuts to the fortunate yes, but for most saving R33k pa is unrealistic. So let's continue this thread dismounted from our highly rich horses.

You should take advantage of every tax break you can. And if you want you can buy USD/EUR etc. trackers in the ETF so you really do not need to be exposed to our "Mickey Mouse" currency even though with our higher interest rate you'll probably gain more.



Personally, if you don't use the TFSA for retirement savings it's a waste. Your real gains are going to come 20+ years after you started.
Your real losses are going to be then.

20 years down the line the rand will be pretty worthless, and thats if the government hasn't already stolen the money from the banks or pension funds, or changed the law to benefit more theft from people.

Pessimistic, yes, but lets see who's right in 20 years.
 

jman

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#7
Your real losses are going to be then.

20 years down the line the rand will be pretty worthless, and thats if the government hasn't already stolen the money from the banks or pension funds, or changed the law to benefit more theft from people.

Pessimistic, yes, but lets see who's right in 20 years.
The Rand will depreciate against the US dollar by the differentials in inflation. Around 3-4% or so annually over the long term. Regardless of politics, etc.

Besides, as Hamster mentioned, you can invest fully in a dollar-based ETF/index in a TFSA, I don't get why you say that "your real losses are going to be then"...
 

lsheed_cn

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#9
If I had your ability to predict the future I'd be rich too.
A good predictor of future performance, is past performance.
There's a steady trend happening thats fairly obvious to see.

The government is reaching 60% debt to GDP ratio's, and the game is still blame whitey.
If you think anything positive is going to happen to the currency in the next 20 years more power to you.
 

3WA

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#10
You should take advantage of every tax break you can. And if you want you can buy USD/EUR etc. trackers in the ETF
Besides, as Hamster mentioned, you can invest fully in a dollar-based ETF/index in a TFSA, I don't get why you say that "your real losses are going to be then"...
Please recommend one! I want to negate real losses to my peanuts.
 

jman

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#11
I go with ASHGEQ (Ashburton 1200) which invests in 1200 companies globally, via my EasyEquities account

There are others like STXWDM (Satrix world), Nasdaq, S&P500, etc.

Educate yourself and start here: justonelap.com
 

Hamster

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#12
Please recommend one! I want to negate real losses to my peanuts.
EasyEquities gives you the most options
CoreShares is a more likeable company but you only have access to their ETFs which are amongst the best.

What @jmam said - buy ASHGEQ (which is almost everything in the whole world).

Or CSP500 if you want to track the S&P500 which is more specific/volatile.
Or STXNDQ if you want to track the Nasdaq 100 which is even more specific and volatile.
Or CTOP50 if you want to invest in South African companies.
 

backstreetboy

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#13
A good predictor of future performance, is past performance.
There's a steady trend happening thats fairly obvious to see.

The government is reaching 60% debt to GDP ratio's, and the game is still blame whitey.
If you think anything positive is going to happen to the currency in the next 20 years more power to you.
Just put it in a 22seven Old Mutual feeder fund in the TFSA wrapper and bob's your uncle.
 

RandomGeek

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#15

maqsmaqs

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#18
I go with ASHGEQ (Ashburton 1200) which invests in 1200 companies globally, via my EasyEquities account

There are others like STXWDM (Satrix world), Nasdaq, S&P500, etc.

Educate yourself and start here: justonelap.com
is this the best option currently?
 

jman

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#19
is this the best option currently?
If you mean the EasyEquities part, then yes, they are the cheapest.

If you mean the funds (Ashburton 1200, etc), then no one can predict the future. But equities have shown time and time again, that over the long term, they outperform any other asset class (like cash, property, bonds, etc). If I were you, I'd just keep it simple and max out your TFSA with the Ashburton 1200.

Also, it seems like you haven't gone through the reading/listening material yet. So do that and educate yourself - don't listen to people on a forum
 

SauRoNZA

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#20
A good predictor of future performance, is past performance.
Tell that to anyone caught by every bomb and crash ever...

There's a steady trend happening thats fairly obvious to see.
Trends are exactly that...a temporary general direction in which something follows. It never lasts forever.

The government is reaching 60% debt to GDP ratio's, and the game is still blame whitey.
If you think anything positive is going to happen to the currency in the next 20 years more power to you.
Now this is fair comment. At the same time it could also mean that if you are in the long game you could be buying lots of bargains and making more profits than anywhere else.

The truth is nobody actually knows, EVERYONE is guessing including yourself.
 
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