Investment advice needed

[zeninja]

Good Day All ,

What would be a good investment for R4k a month for the next 3-5 years ? after the 3-5 year period what sort of cost would be involved when withdrawing/paying out ?

Would another smaller separate option be a good idea ? say R2k a month for the next 3-5 years ( gold ) ? or rather R6k a month for the next 3-5 years ?

 

[Hamster]

Do you need access to the money in that time?

 

[zeninja]

No not at all

 

[HavocXphere]

Satrix would be fine.

 

[modern10]

A split between a satrix ETF and a DBXEU and DBXUS ETF.

 

[supersunbird]

What's the purpose of the investment? Deposit for big item or similar?

 

[zeninja]

possible small deposit for a house/flat(possibly my first rental property) - maybe reinvestment depending on what my situation may be in 3-5 years

 

[HavocXphere]

A split between a satrix ETF and a DBXEU and DBXUS ETF.

ooohhh nice. Didn't know about those.

 

[modern10]

ooohhh nice. Didn't know about those.

Considering the rand is taking a hammering, and investors are more likely to move their money to developed markets, these etfs provide a great hedge. You'll basically have exposure to companies like Google, Apple, ExxonMobil etc.

 

[HavocXphere]

Considering the rand is taking a hammering, and investors are more likely to move their money to developed markets, these etfs provide a great hedge. You'll basically have exposure to companies like Google, Apple, ExxonMobil etc.

Do they qualify for local div exemption? It says incorporated in SA - but just want to check...not sure how the rules apply to EFTs (those with foreign exposure that is).

 

[supersunbird]

possible small deposit for a house/flat(possibly my first rental property) - maybe reinvestment depending on what my situation may be in 3-5 years

Then modern10 has a good suggestion with a mix (perhaps 50/50?) of local and international equity with ETFs and/or Unit trusts. Money is accessible within 2 to 5 work days depending on the product/provider.

 

[modern10]

They are excellent “rand hedges” as they offer direct and 100% exposure to foreign equity
markets through the vehicle of locally listed rand denominated securities.

• They offer low cost structures. The Total Expense Ratio (TER) of 1,00% per annum, plus VAT
(1,14%) covers the expense of: operating the offshore portfolios in the country and currency
of origin; the cost of running the local ETF listed on the JSE; and the currency conversion
from rands into the offshore currency applicable. This all inclusive fee is relatively low
compared with any comparable products available to the SA retail investor.

• Distributions in the form of dividends are made semi-annually. These are classified as foreign
dividends for tax purposes.

• The DBX Tracker ETFs are registered as Collective Investment Schemes with the FSB and are
listed on the Main Board of the JSE, under the Exchange Traded Funds sector.

• The five DBX Tracker ETF Funds all perform within the top quartile of the 100 Foreign
Collective Investment Funds tracked in the Quarterly Unit Trust Survey (ASISA).

 

[HavocXphere]

They are excellent “rand hedges” as they offer direct and 100% exposure to foreign equity
markets through the vehicle of locally listed rand denominated securities.

• They offer low cost structures. The Total Expense Ratio (TER) of 1,00% per annum, plus VAT
(1,14%) covers the expense of: operating the offshore portfolios in the country and currency
of origin; the cost of running the local ETF listed on the JSE; and the currency conversion
from rands into the offshore currency applicable. This all inclusive fee is relatively low
compared with any comparable products available to the SA retail investor.

• Distributions in the form of dividends are made semi-annually. These are classified as foreign
dividends for tax purposes.

• The DBX Tracker ETFs are registered as Collective Investment Schemes with the FSB and are
listed on the Main Board of the JSE, under the Exchange Traded Funds sector.

• The five DBX Tracker ETF Funds all perform within the top quartile of the 100 Foreign
Collective Investment Funds tracked in the Quarterly Unit Trust Survey (ASISA).

Damn. Thats what I feared. oh well....that just means a bit more number crunching to balance it right. Thanks for the info.

 

[modern10]

Damn. Thats what I feared. oh well....that just means a bit more number crunching to balance it right. Thanks for the info.

No problem bud.

 

[Hendrix]

Don't forget that you will pay CGT when selling, just something to remember...
But if you make good money, then so be it, pay your tax with a smile

 

[phiber]

A split between a satrix ETF and a DBXEU and DBXUS ETF.

How do you go about buying these? Do any banks offer them on their online platforms?

 

[supersunbird]

How do you go about buying these? Do any banks offer them on their online platforms?

http://www.etfsa.co.za/ETF_factsheet.htm or http://www.etf.db.com/ZAF/ENG/How-to-invest/db-X-trackers-investment-plan are two ways.

 

[phiber]

http://www.etfsa.co.za/ETF_factsheet.htm or http://www.etf.db.com/ZAF/ENG/How-to-invest/db-X-trackers-investment-plan are two ways.

Great thanks, will take a look tonight

 

[HavocXphere]

Just read up on the tax...grr they changed all the rules since I last looked at this stuff. Though I am intrigued by the fact that the withholding rate is lower than the CGT rate at max bracket.

How do you go about buying these? Do any banks offer them on their online platforms?

The E in EFT means exchange traded so yes you can buy them on pretty much any SA share platform that has access to the JSE. Just search the ticker codes

DBXEU and DBXUS