Easy Equities good or bad?

LaraC said:
Don't be disheartened. China will end its draconian lockdown policy and trade will bounce back. :)
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But then you read things like this:

www.businessinsider.com

Business Insider - Latest News in Tech, Markets, Economy & Innovation

Business Insider tells the global tech, finance, stock market, media, economy, lifestyle, real estate, AI and innovative stories you want to know.
www.businessinsider.com www.businessinsider.com

finance.yahoo.com

Stock market crash warnings grow for 2023 - Morgan Stanley

The outlook for recession in developed countries continues to give the experts fuel for their pessimistic predictions for next year, also in the financial markets. As we explained yesterday, Deutsche Bank forecasts recession in the United States next year and estimates that markets could fall...
finance.yahoo.com finance.yahoo.com

"Despite this scenario for next year, Wilson believes that "[t]his is not a time to sell everything," as he still expects some bullish moves to boost stocks over the next few weeks."

Maybe sell soon, and buy again after the crash?
 
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3WA said:
Aren't you risking getting flagged as a trader by SARS?

Once SARS thinks you're trading, you pay income tax rather than CGT on profits. My understanding is the rule of thumb is that you have to hold three years to convince them you're investing rather than trading.

Buying and selling the same ETF over and over might make them suspicious.
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Correct, this is something to consider. I generally take profit on shares I've held for over 3 years as to not inadvertently trigger a flag to SARS. But the same principle that Airwolf explained above still applies. You strategically using your annual 40k tax exemption to reduce your CGT bill over time.
 
3WA said:
Aren't you risking getting flagged as a trader by SARS?

Once SARS thinks you're trading, you pay income tax rather than CGT on profits. My understanding is the rule of thumb is that you have to hold three years to convince them you're investing rather than trading.

Buying and selling the same ETF over and over might make them suspicious.
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If you're realizing R40k capital growth per annum you've probably got a few shares you've held for at least 3 years.
 
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Bincx said:
Correct, this is something to consider. I generally take profit on shares I've held for over 3 years as to not inadvertently trigger a flag to SARS. But the same principle that Airwolf explained above still applies. You strategically using your annual 40k tax exemption to reduce your CGT bill over time.
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Even if you are doing that through the tax free account?
 
Bundu said:
After 10 years you could have increased your base cost quite a bit by doing this as nothing prevents you from buying those shares again when they dip a bit
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Sure but that’s an active management approach which I have no interest in and often leads to emotional decision making.

The less you care about the money the better it works for you.
 
SauRoNZA said:
Sure but that’s an active management approach which I have no interest in and often leads to emotional decision making.

The less you care about the money the better it works for you.
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I don't think there is any emotion required. Simply look at which stocks made profit. Sell and buy immediately. No emotional decision making needed. Just a reminder once a year. I've myself been very busy this year to even think about this. I set a reminder to do this in Feb before the tax year end.
For me its a no brainer. SARS provides this exemption.... we should strive to take whatever they give (which is not much).... anyways, this is my view :)
 
Bincx said:
I don't think there is any emotion required. Simply look at which stocks made profit. Sell and buy immediately. No emotional decision making needed. Just a reminder once a year. I've myself been very busy this year to even think about this. I set a reminder to do this in Feb before the tax year end.
For me its a no brainer. SARS provides this exemption.... we should strive to take whatever they give (which is not much).... anyways, this is my view :)
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exactly!
 
SauRoNZA said:
Sure but that’s an active management approach which I have no interest in and often leads to emotional decision making.

The less you care about the money the better it works for you.
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nope, not in my view
 
Bincx said:
I don't think there is any emotion required. Simply look at which stocks made profit. Sell and buy immediately. No emotional decision making needed. Just a reminder once a year. I've myself been very busy this year to even think about this. I set a reminder to do this in Feb before the tax year end.
For me its a no brainer. SARS provides this exemption.... we should strive to take whatever they give (which is not much).... anyways, this is my view :)
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Yeah makes sense if you can get away with that but if I was SARS I would flag that as trading specifically to abuse the exemption.

I reckon would still be a safer bet one day when I’m retired to pull out whatever stock and the 40k profit along with it annually.
 
Bundu said:
nope, not in my view
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You're right, but he's also right.

Not using money wisely and spending like a noob will keep you in the poor house.

However, if you have financial knowledge and you have an indifference to money (because it's ultimately just bits in a database somewhere), you sort of transcend its importance and in a way, it's drawn to you.

Helps to be frugal.
 
Bincx said:
Correct, this is something to consider. I generally take profit on shares I've held for over 3 years as to not inadvertently trigger a flag to SARS. But the same principle that Airwolf explained above still applies. You strategically using your annual 40k tax exemption to reduce your CGT bill over time.
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Been doing it for years.
 
SauRoNZA said:
Yeah makes sense if you can get away with that but if I was SARS I would flag that as trading specifically to abuse the exemption.

I reckon would still be a safer bet one day when I’m retired to pull out whatever stock and the 40k profit along with it annually.
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If you stick to the 3 yr rule, there is nothing SARS can do about it. And there is nothing funny or abusive about it. It is an exemption that SARS provides. Most of the really good financial planners encourages this for their clients.

Another important thing to note is that the 40k exemption is for CGT across all assets e.g. if you bought a property a few years and sold it and made a profit e.g. 30k. Then in this specific tax year, the 30k profit would be exempt from CGT and you would only have 10k exemption left for shares.

Anyways bud, the decision is entirely yours. If you still on the fence, then maybe do some of your own research.
 
For the people that has been holding for 10 year+

What is the average return of investment, versus just keeping money in say in the bank with 6% - 10% annual return?
 
Speedster said:
Which bank is going to give you 10%?
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I Think someone said African bank give 9% over 5 years. Just saying someone also said rather put it in a bonds that return close to 10%? But yes I guess 10% is really exceptional.

I guess it more like 6% - 8%...

I think TymeBank also gave 9% a few years ago?

"Earn SA's best investment rate of 10.19% per annum, which is equivalent to 12.50% per annum calculated on expiry after 60 months."

African Bank: https://www.google.com/search?q=afr...j0i22i30l8.13722j0j7&sourceid=chrome&ie=UTF-8

If they go bust what happens with your funds, I think banks only guarantee up to R100K if something goes wrong and they need to liquidate. They do not have the best track record.
 
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Bincx said:
If you stick to the 3 yr rule, there is nothing SARS can do about it. And there is nothing funny or abusive about it. It is an exemption that SARS provides. Most of the really good financial planners encourages this for their clients.

Another important thing to note is that the 40k exemption is for CGT across all assets e.g. if you bought a property a few years and sold it and made a profit e.g. 30k. Then in this specific tax year, the 30k profit would be exempt from CGT and you would only have 10k exemption left for shares.

Anyways bud, the decision is entirely yours. If you still on the fence, then maybe do some of your own research.
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Thing is even the 3 year rule isn’t exactly a rule, it’s more like an acceptable use case thing.

At any time SARS could device upon deeper investigation that it’s trading and exploitation.

After all at the end of the day you need to convince them it’s CGT.
 
Quicks said:
I Think someone said African bank give 9% over 5 years. Just saying someone also said rather put it in a bonds that return close to 10%? But yes I guess 10% is really exceptional.

I guess it more like 6% - 8%...

I think TymeBank also gave 9% a few years ago?

"Earn SA's best investment rate of 10.19% per annum, which is equivalent to 12.50% per annum calculated on expiry after 60 months."

African Bank: https://www.google.com/search?q=afr...j0i22i30l8.13722j0j7&sourceid=chrome&ie=UTF-8

If they go bust what happens with your funds, I think banks only guarantee up to R100K if something goes wrong and they need to liquidate. They do not have the best track record.
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You’ll find this interest rates are restrictive and have pretty low caps.

Everyone with a bit of financial savvy already has a TymeBank account maxed out with the 200k allocation for this very reason.
 
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