Where to save/invest?

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Grumpster

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Hi Guys,

I am looking to diversify my investments but my financial adviser hasn't been of much assistance so I would appreciate your help.

My current monthly contributions are as follows:

1. 5k towards Allan Gray Equity Fund
2. 1k towards Satrix 40
3. 1k towards DJ EURO STOXX 50 Index ETF
4. 1k towards FTSE100 Index ETF
5. 12k towards Liberty Investment Builder (still almost 3 years left of the 5 year plan :cry:)

I will have an additional 4k a month as of next month and I have around 75k which I am seeking to move from a poor performing investment. I was thinking of putting 30k towards a TFSA but I don't know which one to select.

I have been trying to save as much as I can for the past couple of years but I am not smart when it comes to this.

Thank you in advance!!!
 
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Check out Foord Flexible.
Your offshore exposure seems low.

I don't know the Liberty Investment Builder, but I guess it's an endowment, care to share what funds that money is invested in?
 
I don't know your age or circumstances, but here's an interesting read:
http://paulmerriman.com/the-ultimate-buy-hold-strategy-2014/

For diversification you would seek to replicate such asset classes based on your risk appetite and investment period.

Get out of managed funds and rather pick low-cost index ETFs like you've been doing.

Equity (satrix, coreshares or whatever you fancy)
Property (coreshares)
Dividends (coreshares, SATRIX)
Bonds (up to you)
Cash (Capitec or any MM account - ideally this is your E-FUND)
Offshore equities (DBX and ETF's through DriveWealth)

Look at 22seven and sygnia for low-cost investments (0.4% I think). Easy-equities for TFSA and all-round ETF investing.

It's a good idea to diversify further between your investment companies.

Stay away from investments that have high fees. Over long periods, you lose out much more because those small %'s constrict your investment growth.
 
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You can combine your Top40, bonds and cash by buying into one ETF which will reduce a lot of cost and complexity. MAPPSG or MAPPSP if you want less risk.

They make use of NFSWIX for equity exposure which is great for when our markets do well (like today). It is not a Rand hedge though, so combine it with DBXWD for offshore/hedge, a property ETF and maybe some DIVTRX for growth+dividends.

Basically what I'm doing. I make use of EasyEquities and ABSA.
 
Hendrix said:
Check out Foord Flexible.
Your offshore exposure seems low.

I don't know the Liberty Investment Builder, but I guess it's an endowment, care to share what funds that money is invested in?
Click to expand...

The investment is split between these funds: LA EXCEL PROPERTY, LA EXCEL MOD, LA EXCEL LISTED PROPERTY and LA EXCEL INDEX 40.
 
The educated consensus nowadays is that you want maximum diversification, and lowest costs. If you could put the money into a foreign brokerage account (I use interactivebrokers.com) then you could just put it into the Irish domiciled Vanguard world index (VWRD). If you can't and want to leave your money in a local brokerage account (either use easy equities or absa stockbrokers ETF only accounts) then you could put it into the DBXWD.

For your tax free savings you can use again either absa or easy equities, and you should get one and max it out.

There is one caveat though, if you plan on not touching the money until 55, you should put as much as possible into an RA (Up to 27.5% of your income). The only RA I can recommend at the moment is the Sygnia Skeleton Balanced 70 Fund, as it's the lowest cost qualifying fund around.
 
patrick said:
The educated consensus nowadays is that you want maximum diversification, and lowest costs. If you could put the money into a foreign brokerage account (I use interactivebrokers.com) then you could just put it into the Irish domiciled Vanguard world index (VWRD). If you can't and want to leave your money in a local brokerage account (either use easy equities or absa stockbrokers ETF only accounts) then you could put it into the DBXWD.

For your tax free savings you can use again either absa or easy equities, and you should get one and max it out.

There is one caveat though, if you plan on not touching the money until 55, you should put as much as possible into an RA (Up to 27.5% of your income). The only RA I can recommend at the moment is the Sygnia Skeleton Balanced 70 Fund, as it's the lowest cost qualifying fund around.
Click to expand...

is my money safe with them? I have perused their products and the costs are fantastic. only the back of my mind thinking will they be around in 20 years time. so its allan gray vs sygnia. should I choose on cost alone?
 
Do you mean interactive brokers? They've been around since '93, so I imagine they'll be around in another 20 years time. So will EE I imagine, but it doesn't really matter if they're not, as your shares are owned by you, not by them, so even if they fold you're still ok.

But if your choice is simply AG vs sygnia, there's no competition. AG is active and sygnia (at least the skeleton funds) is passive. AG charges a lot, sygnia a little. That means over time, you will definitely earn more with sygnia than with allan gray.
 
patrick said:
Do you mean interactive brokers? They've been around since '93, so I imagine they'll be around in another 20 years time. So will EE I imagine, but it doesn't really matter if they're not, as your shares are owned by you, not by them, so even if they fold you're still ok.

But if your choice is simply AG vs sygnia, there's no competition. AG is active and sygnia (at least the skeleton funds) is passive. AG charges a lot, sygnia a little. That means over time, you will definitely earn more with sygnia than with allan gray.
Click to expand...

yes the effects of costs are devastating over the long term so im definitely looking at cost structures. sygnia is very attractive from that aspect. I didn't know that. thought it was the old school setup where your money is with a certain company and when they fold you have nothing. so its just shares base. im considering going aggressive with my portfolio and then with the wife almost to no risk. I realize I may miss out on money that way but im risk averse and need to know that one portfolio is 'safe'.
 
Dear Grumpster

Do you have any debt?

If yes, then list your debt smallest to largest, excluding home loan. Make minimal payments on everything and attack the smallest loan with all that you have.Once payed off transfer the payments to next biggest debt and repeat proccess until you are debt free.
If you are debt free, well amen brother

Do you have an emergency fund?
If you don't have, place R1000 in a saving account. Once you debt free focus on your emergency account. A minimum 3-month expenses should be saved

Once you completed the above steps then look at retirement. the next question is what age are you.
If you are young then an aggressive fund is what you looking at and vice versa
It is very difficult to give you an exact fund to invest in as many factors can influence the choice you make
 
akescpt said:
http://today.moneyweb.co.za/article...4mI8WkHj2+XORA==&date=2016-04-18#.VxRoc0VXfCQ

Impact of costs on your investment
Click to expand...

3.89% :twisted::mad::sick::(

I ran my example on 2.5% (http://investorchallenge.co.za/those-fees-are-blatantly-robbing-you/) and it was still a nightmare, it's amazing how some financial advisers feel they deserve more of your money than you do. For doing what you ask? Well for losing you money relative to the market. How the hell to they justify their existence.

*Not all FAs are like that, only the majority. Those that see you for a fee, but take no commission on products are fine. Warren Ingram is a good example.
 
If I place up to 27.5% of my income in to an RA then when do I see the tax back?

e.g. when do I see the lower tax rate (due to less income). Immediately or do I only get refunded come tax return time?
 
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