Easy Equities good or bad?

Now you talking. I started off with a fnb TFSA. An employee had his fingers in my account settings. The bank confirmed that. On that note, I moved all investments from all banks! (Hard lesson)

We are talking here about charges.
 
zerocool2009 said:
In reality it aint working like that. I have a tfsa (unit trust), and the fees comes off dividends. The costs aint leaving the “product”. I could be wrong related to EE billing. I havent seen 1c in charges going off. Thats why I ask, post a screenshot
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Bundu said:
I agree, the fees are not reducing the R500k contribution
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The fees may not be coming from your contributions but they are coming out of the profits. This is in an account where you are not allowed to contribute any more past a certain figure yet you stand to gain the most tax benefit. You're hurting your long-term growth.

To put it in another way...

Say you have an account which will grow consistently over the years.
The caveat is that you can't put in more than R36k a year.
You're welcome to pay the fees however you want. Either you pay the provider in cash or they deduct it from your account.

What do you think happens to long-term gains if you decide to pay the monthly fee from your dividends? Remember, you can't contribute more money into the account at will.

Would you opt to pay from dividends or would you opt to pay the monthly fee in cash (from external funds)?
 
Dylan_G said:
The fees may not be coming from your contributions but they are coming out of the profits. This is in an account where you are not allowed to contribute any more past a certain figure yet you stand to gain the most tax benefit. You're hurting your long-term growth.

To put it in another way...

Say you have an account which will grow consistently over the years.
The caveat is that you can't put in more than R36k a year.
You're welcome to pay the fees however you want. Either you pay the provider in cash or they deduct it from your account.

What do you think happens to long-term gains if you decide to pay the monthly fee from your dividends? Remember, you can't contribute more money into the account at will.

Would you opt to pay from dividends or would you opt to pay the monthly fee in cash (from external funds)?
Click to expand...

Let me ask my UT TFSA provider this question, as I can see a monthly bill, and shares are sold off (but within the product). I will revert back ...
 
zerocool2009 said:
Let me ask my UT TFSA provider this question, as I can see a monthly bill, and shares are sold off (but within the product). I will revert back ...
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Shares are sold off to pay the monthly account fee? You have your answer.

Whats the number one rule in any kind of TFSA? You don't withdraw.
 
Dylan_G said:
Shares are sold off to pay the monthly account fee? You have your answer.

Whats the number one rule in any kind of TFSA? You don't withdraw.
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I will revert back once I have my an answer.

ps : costs and withdraw (not the same thing, my honest view)
 
zerocool2009 said:
I will revert back once I have my an answer.

ps : costs and withdraw (not the same thing, my honest view)
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You make R1000 a year in dividends
Your account fee is R10 a year
They sell R10 worth of your UT to cover the cost

What happens after that? They leave the R10 in your account? :laugh:
 
In my view costs are not reducing your R500k, but a withdrawal does.
Costs are the same as an ETF making a loss.

I'm just not sure if they can sell any of your investments to recover the costs. How do they decide which one?
 
Dylan_G said:
You make R1000 a year in dividends
Your account fee is R10 a year
They sell R10 worth of your UT to cover the cost

What happens after that? They leave the R10 in your account? :laugh:
Click to expand...

Mmmm, been thinking now ...

My TFSA is 9 years old ... and costs are involved, and my SARS TFSA documents aint saying my life contribution gets reduced. Just a note :)
 
Speedster said:
But shouldn't you be up to date with what's happening with your investments? Why do you need an email to tell you what's going on?
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Lol! Its after the fact. Learn whats last trading date 101 after 4pm when the last buy’s can happen!

But very true! My fault, my loss. Will smile.

Nothing on sharenet regarding this as well…

Anyway…
 
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