Easy Equities good or bad?

[SauRoNZA]

You actually seem quite nervous and anxious tbh. You must be ironclad so that even if 50% of your portfolio goes south (as it did with covid), you stick with it because the fundamentals track true over the long term.

You need to have a very diverse portfolio, both in geographies and sectors. Equities, real-estate and bonds (if you're toward the retiring age).

The market fluctuates, but in the long term you will win if you're invested in diverse assets.

What @SauRoNZA says is true. If you have conviction in your strategy, then bear periods are definitely opportune times to buy. There are exceptions, but follow the fundamentals and you'll be fine.

Are you investing in index funds? Personally, I don't stock pick, because I don't have the time or the acumen. I stick with indexes for pretty much everything.

Yup ETF’s all the way.

Direct shares are just hard work and a very easy way to lose your money.

Closed out all those positions I had back in the day except for a few when they were in the green.

Have some big brand US-based ones that I could kick myself for not investing in an ETF instead, but I also just leave them to grow and reinvest in themselves.

In my view once the money has gone into any one thing it needs to stay there for 15years and then I’ll take a view over time to decide if they should be exited and then only on a green.

 

[Priapus]

I’ve just started a TFSA on EE.

Put some into Satrix world. satrix Top 40. Divi plus.

Are there any other good ETFs I can use to diversify more?

The money I put into this now; I have zero intention of pulling out for at least 15yr

Plan on maxing out the TFA each year and also starting one for my son - who is 6 months old. So that when he is 18. He has money for higher education or whatever he needs.

 

[Speedster]

I’ve just started a TFSA on EE.

Put some into Satrix world. satrix Top 40. Divi plus.

Are there any other good ETFs I can use to diversify more?

The money I put into this now; I have zero intention of pulling out for at least 15yr

Plan on maxing out the TFA each year and also starting one for my son - who is 6 months old. So that when he is 18. He has money for higher education or whatever he needs.

You've picked the same ones I have for my kids. Except my kids have some China too.

 

[Priapus]

You've picked the same ones I have for my kids. Except my kids have some China too.

Yeah I just went with what you had; except for China. Still not sure if it will go up again.. maybe now is a good time to buy?

 

[3WA]

I’ve just started a TFSA on EE.

Put some into Satrix world. satrix Top 40. Divi plus.

Are there any other good ETFs I can use to diversify more?

The money I put into this now; I have zero intention of pulling out for at least 15yr

Plan on maxing out the TFA each year and also starting one for my son - who is 6 months old. So that when he is 18. He has money for higher education or whatever he needs.

I also do STX World, but instead of Top 40 I do STX Emerging Markets. Why limit to South Africa when one of the other emerging markets (India, Brazil, China, whoever) might outperform us?

 

[r4nd0m]

Why limit to South Africa when one of the other emerging markets (India, Brazil, China, whoever) might outperform us?

Indeed. Living in South Africa and with retirement allocation percentages favoring our country (Regulation 28), most people are focused only here, which is wrong.

The global economy is so much bigger with South Africa making up only a small percentage.

I always use this infographic to make people visualize just how insignificant as an economy we are:



To be well diversified, ask yourself if you have holdings in as many of the above countries as possible. Now ask yourself if it's also per sector (equities, real-estate, commodities, bonds).

This is why indexed ETFs are awesome. With one investment, you have many of these covered.

Your TFSA and non-retirement investment allocations are not government mandated, so I suggest you go for ETFs that cover the global economy.

It's a good hedge against your portfolio and also our volatile currency.

 

[Priapus]

Indeed. Living in South Africa and with retirement allocation percentages favoring our country (Regulation 28), most people are focused only here, which is wrong.

The global economy is so much bigger with South Africa making up only a small percentage.

I always use this infographic to make people visualize just how insignificant as an economy we are:

View attachment 1431743

To be well diversified, ask yourself if you have holdings in as many of the above countries as possible. Now ask yourself if it's also per sector (equities, real-estate, commodities, bonds).

This is why indexed ETFs are awesome. With one investment, you have many of these covered.

Your TFSA and non-retirement investment allocations are not government mandated, so I suggest you go for ETFs that cover the global economy.

It's a good hedge against your portfolio and also our volatile currency.

Very informative, thank you. I'll diversify more. But keep the Top 40 as is, for now.

 

[Speedster]

Indeed. Living in South Africa and with retirement allocation percentages favoring our country (Regulation 28), most people are focused only here, which is wrong.

The global economy is so much bigger with South Africa making up only a small percentage.

I always use this infographic to make people visualize just how insignificant as an economy we are:

View attachment 1431743

To be well diversified, ask yourself if you have holdings in as many of the above countries as possible. Now ask yourself if it's also per sector (equities, real-estate, commodities, bonds).

This is why indexed ETFs are awesome. With one investment, you have many of these covered.

Your TFSA and non-retirement investment allocations are not government mandated, so I suggest you go for ETFs that cover the global economy.

It's a good hedge against your portfolio and also our volatile currency.

My TFSA is split between MSCI World, MSCI China and Sygnia 4IR. I figure I have more than sufficient local exposure in my RA.

For kids I've got 25% local.

 

[Priapus]

My TFSA is split between MSCI World, MSCI China and Sygnia 4IR. I figure I have more than sufficient local exposure in my RA.

For kids I've got 25% local.

I'm still on the fence about RA's - such mixed opinions about them.

 

[Speedster]

I'm still on the fence about RA's - such mixed opinions about them.

No better long term saving vehicle IMO. The up front tax benefit makes a big impact

 

[cr@zydude]

Indeed. Living in South Africa and with retirement allocation percentages favoring our country (Regulation 28), most people are focused only here, which is wrong.

The global economy is so much bigger with South Africa making up only a small percentage.

I always use this infographic to make people visualize just how insignificant as an economy we are:

View attachment 1431743

To be well diversified, ask yourself if you have holdings in as many of the above countries as possible. Now ask yourself if it's also per sector (equities, real-estate, commodities, bonds).

This is why indexed ETFs are awesome. With one investment, you have many of these covered.

Your TFSA and non-retirement investment allocations are not government mandated, so I suggest you go for ETFs that cover the global economy.

It's a good hedge against your portfolio and also our volatile currency.

While SA is a small part of the global economy, remember that many of the biggest stocks on the JSE have low SA exposure.

Also, JSE ETFs tend to have the lowest fees.

 

[r4nd0m]

Also, JSE ETFs tend to have the lowest fees.

Well, in comparison to what? If you mean local vs foreign ETFs (within SA), then possibly.

If you mean in comparison to offshore ETFs, definitely not. UCITS ETFs are even cheaper.

As with many things in ZA, we get shafted fee wise.

 

[cr@zydude]

Well, in comparison to what? If you mean local vs foreign ETFs (within SA), then possibly.

If you mean in comparison to offshore ETFs, definitely not. UCITS ETFs are even cheaper.

As with many things in ZA, we get shafted fee wise.

Of ETFs available on the JSE, JSE Top 40 index funds tend to have the lowest TER.

 

[Priapus]

Well, in comparison to what? If you mean local vs foreign ETFs (within SA), then possibly.

If you mean in comparison to offshore ETFs, definitely not. UCITS ETFs are even cheaper.

As with many things in ZA, we get shafted fee wise.

Talking about offshore things; how does one use EE to invest in offshore in a way that protects against the rand?

Eg, if the rand fell on it's arse, the offshore stuff should be unaffected.

 

[Speedster]

Talking about offshore things; how does one use EE to invest in offshore in a way that protects against the rand?

Eg, if the rand fell on it's arse, the offshore stuff should be unaffected.

If you buy offshore funds, then if the rand falls the fund value (in ZAR) increases so you're hedged in that way. The option is to use the USD account which is obviously then completely independent of ZAR behaviour.

 

[supersunbird]

No better long term saving vehicle IMO. The up front tax benefit makes a big impact

Use the tax savings to put into TFSAs (and if that allocation full, towards others ETFs)

 

[r4nd0m]

Talking about offshore things; how does one use EE to invest in offshore in a way that protects against the rand?

Eg, if the rand fell on it's arse, the offshore stuff should be unaffected.

Personally, I don't use EE for offshore.

I have an InteractiveBrokers brokerage account and use Shyft to funnel funds that way.

EE makes offshore investing easy for people, but if you're willing to spend some time trying to buy USD when it's cheap, then sending it offshore can be effective in a few ways:

1. Proper USD (or GBP, EUR, whatever) based investing
2. Wider selection of stocks and ETFs (check etfdb.com)
3. UCITS access (check justetf.com)
4. Cheaper fees on the above

UCITS is actually quite good. There's this whole US estate and tax thing when you hold assets > 60k. UCITS maneuvers around that issue.

You should take a look at it. It needs some research put into it from your side.

 

[karnuffel]

Im still very new to this, but bought Satrix China, Satrix Divi and Satrix world with what I had left before my salary came in.

Was looking at some of the Sygnia ones too, but know waaaay too little

 

[Priapus]

Personally, I don't use EE for offshore.

I have an InteractiveBrokers brokerage account and use Shyft to funnel funds that way.

EE makes offshore investing easy for people, but if you're willing to spend some time trying to buy USD when it's cheap, then sending it offshore can be effective in a few ways:

1. Proper USD (or GBP, EUR, whatever) based investing
2. Wider selection of stocks and ETFs (check etfdb.com)
3. UCITS access (check justetf.com)
4. Cheaper fees on the above

UCITS is actually quite good. There's this whole US estate and tax thing when you hold assets > 60k. UCITS maneuvers around that issue.

You should take a look at it. It needs some research put into it from your side.

Thanks I will definitely look into it more next month, whilst on leave. May I ping you for any questions I may have at some stage?

 

[GrootVoet]

Personally, I don't use EE for offshore.

I have an InteractiveBrokers brokerage account and use Shyft to funnel funds that way.

EE makes offshore investing easy for people, but if you're willing to spend some time trying to buy USD when it's cheap, then sending it offshore can be effective in a few ways:

1. Proper USD (or GBP, EUR, whatever) based investing
2. Wider selection of stocks and ETFs (check etfdb.com)
3. UCITS access (check justetf.com)
4. Cheaper fees on the above

UCITS is actually quite good. There's this whole US estate and tax thing when you hold assets > 60k. UCITS maneuvers around that issue.

You should take a look at it. It needs some research put into it from your side.

I would like to know what is the South African authorities reach on these platforms. For example CTC on these platforms will SARS be able to access that information.