Retirement and self-sabotage in South Africa

[surface]

Thank you. Finally a proper response. I have also gone through some other threads last night and some advice I have been given in the past, but still very confusing. So maybe 3K a month in TFSA and R7000 a month in RA? Then see how life goes and look at some offshore investments.

I found this by @SauRoNZA as of one of the best general advice on this forum. There have been others as well but I haven't stored the link. Being a bit specific on that, if I could turn back the clock, I personally would do the at least 3 things in this order. Your mileage would vary depending on age and circumstances.

1. Clear the debt, high interest first
2. Max out TFSA
3. Max out RA

 

[RedViking]

Fair enough. Personally, I'm not that offended when such terms are qualified with a prefix to disassociate it from the stand alone concept, but still wouldn't use them myself.

I like to think people have been put in boxes and they can't live and think outside of those boxes. Anything that goes against the norm is frowned upon or immediately turned down.
My biggest struggle in life is this freaking mental block society and life has brainwashed me with. The more I fight and learn to break free from that, the more I realise how much opportunity there is in the world, specially with access to the Internet at the moment.

Yes, some people are happy to work for a company 12 hours a day, go to work, go home, sleep, repeat. Take a day or two weekend. Go to work. Do it for 40-50 years. Retire. And some have managed to do it pretty well and a have a full life.

To me, that is not a life. I don't have the answers yet, but I do know I want to get out of this freaking box.

 

[3WA]

So maybe 3K a month in TFSA and R7000 a month in RA?

Solid plan to start with, but there’s a lot of variables. I'm sure you'll tweak as you go along. Aside from MYBB, other good resources:

Fat Wallet Facebook group and justonelap.com
/r/personalfinanceza on reddit

The other thing to start on, if not already done, is an emergency fund of three to six month's expenses in an easily accessible place.

 

[RedViking]

I found this by @SauRoNZA as of one of the best general advice on this forum. There have been others as well but I haven't stored the link. Being a bit specific on that, if I could turn back the clock, I personally would do the at least 3 things in this order. Your mileage would vary depending on age and circumstances.

1. Clear the debt, high interest first
2. Max out TFSA
3. Max out RA

Brilliant.

I don't have any debt, except for massive legal expenses. At the moment. My family did zero planning for the future and my mom has no pension. So this is a burden I have to carry.

So for TFSA and RA, where is the best place to start?

I saw on the forum Allan Grey, Easy Equities, Sygnia, 10X, Coro.

As I have zero investments, besides growing a business, no idea where to start.

And then I am specifically interested in off shore investments. But yeah, should start a separate thread after going through the other million.

 

[Vrotappel]

It was supposed to be implemented last year already. Has been in the news for ages. All gone quiet now.

There was no plan for this.

 

[supersunbird]

RedViking, what is your outlook on SAs future (in say 15 to 20 years time, will it be Zim 2)? Will you likely retire here or some other country?

 

[RedViking]

Solid plan to start with, but there’s a lot of variables. I'm sure you'll tweak as you go along. Aside from MYBB, other good resources:

Fat Wallet Facebook group and justonelap.com
/r/personalfinanceza on reddit

The other thing to start on, if not already done, is an emergency fund of three to six month's expenses in an easily accessible place.

I have an emergency fund, 100K. Currently back down to 50K, but busy topping up again until the next crisis. I will need a separate fund to cover my salary for 3-6 months, but will do that as part of investing.

 

[RedViking]

RedViking, what is your outlook on SAs future (in say 15 to 20 years time)? Will you likely retire here or some other country?

I have been having sleepless nights over it now for months, specially the last weeks. There are a bunch of things I need to consider and don't have full control over, and after looking at the countries I have interaction with, Finland, Japan, Philippines, New Zealand and Australia, although nice to go to for a couple of months, maybe a holiday home, I don't see myself there within the next 10-20 years, and then for retirement I will probably be too old to live there permanently unless I do some massive financial contribution.

If my wife was not sick I would probably be in New Zealand due to most of my business coming from there, although realistically I might not qualify to go there. (lack of formal education and not on the needed skills list etc)

Yes sorry, I know it is not really an answer. Maybe. If I was the only person in the equation, definitely.

 

[surface]

Brilliant.

I don't have any debt, except for massive legal expenses. At the moment. My family did zero planning for the future and my mom has no pension. So this is a burden I have to carry.

So for TFSA and RA, where is the best place to start?

I saw on the forum Allan Grey, Easy Equities, Sygnia, 10X, Coro.

As I have zero investments, besides growing a business, no idea where to start.

And then I am specifically interested in off shore investments. But yeah, should start a separate thread after going through the other million.

Not being financial advisor, I can't offer specifics but I have dealt with Coronation, Sygnia and 10x and they are all great to deal with in terms of admin. Sygnia has been the slowest as per my personal experience.

For coronation off-shore, select option 'All funds - Offshore UT' to see what you get and then click on each fund below in table to get a list and then click 'Compare now'

"coronation optimum growth fund P" has been good and I will invest a bit soon, if I can.

Choose a Fund

Your guide to finding the best fund for you.

www.coronation.com

 

[RedViking]

Not being financial advisor, I can't offer specifics but I have dealt with Coronation, Sygnia and 10x and they are all great to deal with in terms of admin. Sygnia has been the slowest as per my personal experience.

For coronation off-shore, select option 'All funds - Offshore UT' to see what you get and then click on each fund below in table to get a list and then click 'Compare now'

"coronation optimum growth fund P" has been good and I will invest a bit soon, if I can.

Choose a Fund

Your guide to finding the best fund for you.

www.coronation.com

View attachment 1102497


View attachment 1102499

Thanks. I'm on the right direction then as far as platforms go.

None of us are experts, so don't hold back giving advice. I need to do my homework afterwords and then get further input. The thing approaching an expert is, the better prepared you are, the better questions you can ask and know what you want, the better they can guide you. And this forum input has prepared me on various occasions, sometime even better than the advice experts give you with an agenda, a users here are extremely diverse from all walks of life.

 

[surface]

Thanks. I'm on the right direction then as far as platforms go.

None of us are experts, so don't hold back giving advice. I need to do my homework afterwords and then get further input. The thing approaching an expert is, the better prepared you are, the better questions you can ask and know what you want, the better they can guide you. And this forum input has prepared me on various occasions, sometime even better than the advice experts give you with an agenda, a users here are extremely diverse from all walks of life.

cool, as long as you search factsheets on every fund and understand risks.

If I had money today, I would consider these without batting an eyelid.
Sygnia FAANG Plus Equity Fund A
Sygnia Itrix 4th Industrial Rev Global Equity ETF
Coronation resources

 

[RedViking]

cool, as long as you search factsheets on every fund and understand risks.

If I had money today, I would consider these without batting an eyelid.
Sygnia FAANG Plus Equity Fund A
Sygnia Itrix 4th Industrial Rev Global Equity ETF
Coronation resources

Well I am sure I'm gonna learn the hard way.

 

[backstreetboy]

I don't have an RA or Pension. I am 30 years old.

Where is the best place for me to save / investing for my "retirement", knowing the money will be safe and available

Sygnia Skeleton balanced 70 fund in an RA wrapper then a TFSA with EE (Coreshares World 70% and either MSCI China or SA Top 40 30%) or Sygnia (Sygnia Itrix S&P Global 1200 70% and SA top 40 30%).

 

[saturnz]

Well I am sure I'm gonna learn the hard way.

You definitely will see lots of action once interest rates rise.

This is the risk most economic agents are simply ignoring.

 

[RedViking]

Cheers, thanks guys. Started off with absolutely useless input last night, ended up with something to research today and then start with some serious questions and direction, but for another thread.

 

[SauRoNZA]

Brilliant.

I don't have any debt, except for massive legal expenses. At the moment. My family did zero planning for the future and my mom has no pension. So this is a burden I have to carry.

So for TFSA and RA, where is the best place to start?

I saw on the forum Allan Grey, Easy Equities, Sygnia, 10X, Coro.

As I have zero investments, besides growing a business, no idea where to start.

And then I am specifically interested in off shore investments. But yeah, should start a separate thread after going through the other million.

I use Easy Equities for my TFSA account and recently switched it to buy only the CoreShare Total World ETF on a recurring buy on the 15th.

RA is all with 10X which I have a debit order for up to 15% and try to top up beyond that when I can or get money back from SARS etc.

Then I have some money accumulate in my EE normal account for six months or so which I then convert to USD (saves costs) and at present only buying into the Global Lithium & Battery tech funds.

In the past I used to do individual company investment but it’s too much to manage passively and also tends to get emotive which I try to avoid.


****

You can do it the other way around and stack your RA first and then take the tax rebate to fund your TFSA once a year but that takes some serious discipline and even I opted against it for that reason.

*****

Also if you want to do 10X drop me a PM and I’ll send you a referral. Both parties used to get Takealot vouchers, not sure if still the case.

Don’t sign up ahead of the link otherwise it makes kak.

 

[SauRoNZA]

I have an emergency fund, 100K. Currently back down to 50K, but busy topping up again until the next crisis. I will need a separate fund to cover my salary for 3-6 months, but will do that as part of investing.

Do you have a home loan? If you do I trust you are parking it in there?

 

[RedViking]

Do you have a home loan? If you do I trust you are parking it in there?

Renting. HOPE to buy next year. Maybe. I realised life is extremely unpredictable.

 

[RedViking]

I use Easy Equities for my TFSA account and recently switched it to buy only the CoreShare Total World ETF on a recurring buy on the 15th.

RA is all with 10X which I have a debit order for up to 15% and try to top up beyond that when I can or get money back from SARS etc.

Then I have some money accumulate in my EE normal account for six months or so which I then convert to USD (saves costs) and at present only buying into the Global Lithium & Battery tech funds.

In the past I used to do individual company investment but it’s too much to manage passively and also tends to get emotive which I try to avoid.


****

You can do it the other way around and stack your RA first and then take the tax rebate to fund your TFSA once a year but that takes some serious discipline and even I opted against it for that reason.

*****

Also if you want to do 10X drop me a PM and I’ll send you a referral. Both parties used to get Takealot vouchers, not sure if still the case.

Don’t sign up ahead of the link otherwise it makes kak.

I have signed up with 10X a while ago but then hit a massive 20K a month crisis. So it never happened. Not sure if the person they assigned that time expired or what.

 

[supersunbird]

Rise and fall of South Africa’s “R54 billion” Bitcoin Brothers

From their tiny bedroom in Robertsham to a penthouse in the luxurious Houghton Hotel, the story of Raees and Ameer Cajee seemed like a fairytale success until it turned into a horror story.

mybroadband.co.za

My 92 year old Dad’s money is with you. He has almost nothing left now.

A lady who is in her 70s has been retrenched and has no more money except for what was with you.

If they had been in RAs at least they would have had something, even if in measly non-crypto stock markets. Which is more than nothing.