Backlash over plan to force investment in state projects

rvZA said:
Yep, I invest only in 5 ETFs abroad. That is that. Whatever amount I have, I split up between them.

VIG
IYY
SPY
VUG
VONG

Been doing great the past 8 years for me.
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How do you invest in them? Or rather, who do you use to invest in them? A platform like EasyEquity?
 
Carl_Johnson said:
How do you invest in them? Or rather, who do you use to invest in them? A platform like EasyEquity?
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Yes, I invest in all of them through EE. Although, I also have a IB account too and the majority of my shares are with them.
 
rvZA said:
Yes, I invest in all of them through EE. Although, I also have a IB account too and the majority of my shares are with them.
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Since EasyEquities is still a South African company, is it truly safer to invest through them as opposed to putting money into a pension fund?
 
jUgg3rnAutZA said:
Since EasyEquities is still a South African company, is it truly safer to invest through them as opposed to putting money into a pension fund?
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The USD offshore shares you buy through EE are not domiciled in SA, they domiciled in the USA through a separate company called "First World Trader Nominees", held in trust on your behalf. You own the underlying share, nobody else does.
 
SilverCode said:
If this comes to pass I'll also be cashing out as much of my RA as possible with the 3 pot system and moving it to international markets. The tax benefits now do not outweigh the prospect of having no money to retire with because the ANC forced my investments into their corrupt schemes and failed government policies.
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I think you'll be able to cash out a maximum of R30k per year.
 
supersunbird said:
No, that is just the probable seed capital amount for the savings component. You'd be limited to the 33% of contributions that went into the productx maximum once a year.
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Up to a maximum of R30k. Or did I misunderstand that?
 
deweyzeph said:
The USD offshore shares you buy through EE are not domiciled in SA, they domiciled in the USA through a separate company called "First World Trader Nominees", held in trust on your behalf. You own the underlying share, nobody else does.
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@deweyzeph is correct.
 
Bliksis said:
Up to a maximum of R30k. Or did I misunderstand that?
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Two Pot Retirement System Campaign | Sanlam

Sanlam, one of the largest FSPs in South Africa, provides insurance, investment, financial planning & retirement advice to individuals, groups and corporates.
www.sanlam.co.za

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Nothing about maximum limits on accessing the savings component.

This is interesting:

1712305629100.png
 
>Is Living Annuity subject to Reg 28?
supersunbird said:
No
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If your pension fund allows, seems selecting Living Annuity when you retire bypasses Reg 28.
Unfortunately before you retire you subject to Reg 28.

Reg 28 seems to be the tool that they will likely use to force investment in state projects.
Reg 28 initial intention was bad as it ensured that funds follow low/medium risk investment strategy.
The downside is that Reg 28 can be updated without changes to Pension Laws to force investment in state projects

EDIT: Found this blog on Reg 28 from 2011 interesting https://www.fanews.co.za/article/co...ng-you-need-to-know-about-regulation-28/10121
 
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system32 said:
>Is Living Annuity subject to Reg 28?

If your pension fund allows, seems selecting Living Annuity bypasses Reg 28.

Reg 28 seems to be the tool that they will likely use to "mold" the investment,
Reg 28 is not a bad rule as it ensures that funds follow low/medium risk investment strategy.
The downside is that Reg 28 can be updated without due diligence.
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Just max the 45% abroad within Reg28!
 
So before we all panic, what would this change even look like? How would it be different to a government bond? Because the infrastructure fund would need to pay an interest rate or coupon to investors.

It will likely also be a small percentage, say 10%, of all new pension funds.

So before you all panic, think before taking the tax knock. That said, I did minimise my retirement fund and will offshore the after tax income for better returns than retirement or RA funds with reg 28. It should take less than 5 years to make up the tax hit.
 
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