(Another) TFSA thread...

Priapus

Priapus

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So, I'm looking to open a TFSA account and max out the 36k p/a contribution each year - and leave it there for as long as possible.

Currently, I am looking at the TFSA accounts offered by 10x. However they have a few options, which I am not sure are good.


At the moment, I am thinking I have two choices:

- 10X Top 60 SA Equity Index
- 10X MSCI World Index

Both are considered high risk; and recommend 7+ years investment - I plan on investing till my lifetime contribution is reached (So, around 13 years) - and then deciding what to do with the funds at the point.

The other option, is to split between both these indexes, but I am not super confident on the local index - I mean if SA goes completely tits up, that investment is worthless, right?
 
Just go with Sygnia or EasyEquities. Sygnia Itrix S&P Global 1200 ESG ETF or Coreshares World has half the TER than that 10x fund.

Priapus said:
The other option, is to split between both these indexes, but I am not super confident on the local index - I mean if SA goes completely tits up, that investment is worthless, right?
Click to expand...
Lol good luck getting your TFSA out at that stage.
 
Priapus said:
Please explain. I'm a new to all this investing thing.
Click to expand...
Total expense ratio = cost you're going to pay
TER 0.62%

Total Investment Charge (TIC) 0.39% (Sep 2022)

coreshares.co.za

10X Total World Stock Tracker Feeder Fund - Fund - 10X

The 10X Total World Stock Feeder ETF and Unit Trust Fund track the FTSE Global All Cap Index, which covers both well-established (developed) and still-developing (emerging) markets. To achieve its investment objective, the Funds will, apart from assets in liquid form, consist solely of...
coreshares.co.za coreshares.co.za
TER 0.42%
 
backstreetboy said:
Total expense ratio = cost you're going to pay
TER 0.62%

Total Investment Charge (TIC) 0.39% (Sep 2022)

coreshares.co.za

10X Total World Stock Tracker Feeder Fund - Fund - 10X

The 10X Total World Stock Feeder ETF and Unit Trust Fund track the FTSE Global All Cap Index, which covers both well-established (developed) and still-developing (emerging) markets. To achieve its investment objective, the Funds will, apart from assets in liquid form, consist solely of...
coreshares.co.za coreshares.co.za
TER 0.42%
Click to expand...

Thanks. There has to be more than just TER amount to be a deciding factor on which TFSA account to choose, though?

Otherwise, everyone would just pick the one with lowest TER %.
 
My thinking is, the TFSA has a rather small cap (R36k per year) and allows international equity exposure. RAs have a larger cap and restrict to more local equity. So max the TFSA purely getting international equity ETFs, and then if you want some local equities, get that in an RA.
 
Priapus said:
Thanks. There has to be more than just TER amount to be a deciding factor on which TFSA account to choose, though?

Otherwise, everyone would just pick the one with lowest TER %.
Click to expand...
The account refers to the Tax Free Savings account.

This you can open one or more Management companies, e.g. Satrix, ABSA, Allan Gray, Sygnia etc.

There is no TER or any fee at Fund account level.

The funds inside the account, there is a fee "TER" on that. Eg 0.10% on The Satrix Top 40 ETF.


1668668398188.png
You can see the rate in the Fund fact sheets.
 
3WA said:
My thinking is, the TFSA has a rather small cap (R36k per year) and allows international equity exposure. RAs have a larger cap and restrict to more local equity. So max the TFSA purely getting international equity ETFs, and then if you want some local equities, get that in an RA.
Click to expand...

That makes sense.

The issue I have with an RA, is IF I decide to leave SA (Small possibility) - how difficult is it to get my money out of the RA?
 
Priapus said:
That makes sense.

The issue I have with an RA, is IF I decide to leave SA (Small possibility) - how difficult is it to get my money out of the RA?
Click to expand...
Yeah, pain in the ass if you emigrate, then you might as well just go international ETF. I don’t really see the point of concentrating in the local market unless it’s for the RA tax break.
 
3WA said:
Yeah, pain in the ass if you emigrate, then you might as well just go international ETF. I don’t really see the point of concentrating in the local market unless it’s for the RA tax break.
Click to expand...
You're right, but next year supposedly begins the start of retirement pools whereby you can withdraw 1/3 of yearly contributions at any time.

Here's hoping it goes through AND benefits from the retirement contributions tax break.

Then you can take the 1/3 out + the rebate and invest offshore.

Relatively recent 45% offshore allocation on retirement funds is better than before too.
 
Speedster said:
Aren't these three very highly correlated?
Click to expand...

Yes, that is why I posted the links.

I like tech stocks. That is basically the NASDAQ. Those shares are in the S&P at a lower weighting, and those S&P shares again in the MSCI WI. To diversify a bit.
 
Priapus said:
So, I'm looking to open a TFSA account and max out the 36k p/a contribution each year - and leave it there for as long as possible.

Currently, I am looking at the TFSA accounts offered by 10x. However they have a few options, which I am not sure are good.


At the moment, I am thinking I have two choices:

- 10X Top 60 SA Equity Index
- 10X MSCI World Index

Both are considered high risk; and recommend 7+ years investment - I plan on investing till my lifetime contribution is reached (So, around 13 years) - and then deciding what to do with the funds at the point.

The other option, is to split between both these indexes, but I am not super confident on the local index - I mean if SA goes completely tits up, that investment is worthless, right?
Click to expand...
I went with EasyEquities. There costs are as low as anyone else, and they have a very broad selection. Put mine in MSCI World, MSCI China (mistake) and Sygnia 4IR. Kids' portfolios are MSCI World, MSCI China (mistake), Satrix top40 and Satrix Divi.
 
Speedster said:
I went with EasyEquities. There costs are as low as anyone else, and they have a very broad selection. Put mine in MSCI World, MSCI China (mistake) and Sygnia 4IR. Kids' portfolios are MSCI World, MSCI China (mistake), Satrix top40 and Satrix Divi.
Click to expand...

Thanks

I could do EasyEquities on top of a TFSA account, right?
 
Speedster said:
I went with EasyEquities. There costs are as low as anyone else, and they have a very broad selection. Put mine in MSCI World, MSCI China (mistake) and Sygnia 4IR. Kids' portfolios are MSCI World, MSCI China (mistake), Satrix top40 and Satrix Divi.
Click to expand...

Also, why was China a mistake? Just curious.
 
Priapus said:
Thanks

I could do EasyEquities on top of a TFSA account, right?
Click to expand...
You do the TFSA with/through/at EasyEquities. i.e. EasyEquities is the platform which holds your TFSA. You can then invest in the available shares/funds within your TFSA wrapper on EE.
 
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