Withdrawals from funds

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Sideshow Bob

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Do any of you do a occasional withdrawal from well performing funds now and then? I was thinking of taking out a bit for house renovation etc. I was thinking getting benefit from a CGT exclusion which I never really utilized so far. Also, wouldn't it be marginally better to withdraw when fund is performing well rather than withdrawing it when it is doing badly?

Of course, I can put off renovation by another year (been doing it for 2 years already).

Any input would be appreciated.
 
surface said:
Do any of you do a occasional withdrawal from well performing funds now and then? I was thinking of taking out a bit for house renovation etc. I was thinking getting benefit from a CGT exclusion which I never really utilized so far. Also, wouldn't it be marginally better to withdraw when fund is performing well rather than withdrawing it when it is doing badly?

Of course, I can put off renovation by another year (been doing it for 2 years already).

Any input would be appreciated.
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I'm of the opinion that the only reason for investment is to enable increased spending later. Simply investing and holding everything till the day you die is kinda pointless to my mind. If this is something that's of importance to you then using your prior investments for this (assuming it's not your full life savings) makes perfect sense.
 
surface said:
I think he means to consider using CC instead of withdrawal from funds.
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You're going to be paying significant interest on that CC debt. I'd be very hesitant to use CC debt to finance anything, especially if you have the funds available. I'm guessing CC is about 15%, so you'd have to be pretty confident the fund will outperform that to go the CC route.
 
Speedster said:
You're going to be paying significant interest on that CC debt. I'd be very hesitant to use CC debt to finance anything, especially if you have the funds available. I'm guessing CC is about 15%, so you'd have to be pretty confident the fund will outperform that to go the CC route.
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Good point. I am not confident about CC outperforming fund although at times, some funds have done that in recent past but as they say 'past performance is no indication of future'

Speedster said:
I'm of the opinion that the only reason for investment is to enable increased spending later. Simply investing and holding everything till the day you die is kinda pointless to my mind. If this is something that's of importance to you then using your prior investments for this (assuming it's not your full life savings) makes perfect sense.
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Indeed, this is what I was debating with myself. 120K withdrawal is not much really and what good is money if it just stays there (even if it accumulates)
 
I like to max out my 40k capital gain allowance every year. Even if you don't spend it- buy back the shares or units again so that your base cost is higher for next time.
 
Improving a house in line with others in your area will always push up its value. Have a look at others in your area to see what changes they are making (property24).

Some areas like pools and braais others like different things. It just depends what you want to do. Normally ceilings, doors and floors make the biggest difference also renovating kitchens and bathrooms.
 
Corelli said:
Improving a house in line with others in your area will always push up its value. Have a look at others in your area to see what changes they are making (property24).

Some areas like pools and braais others like different things. It just depends what you want to do. Normally ceilings, doors and floors make the biggest difference also renovating kitchens and bathrooms.
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dont forget solar esp in SA. Our last big project was remove pull and irrigate entire property. Its now kitchen and solar :)
 
Snyper564 said:
dont forget solar esp in SA. Our last big project was remove pull and irrigate entire property. Its now kitchen and solar :)
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Solar must be viable option if you have a big house or a farm. For people like us, it doesn't make sense to drop 80K as our irrigation in townhouses is not that much.
 
surface said:
Solar must be viable option if you have a big house or a farm. For people like us, it doesn't make sense to drop 80K as our irrigation in townhouses is not that much.
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not sure what you working with just pointed out things to consider but wouldnt be viable for you :)
 
How does one calculate net gain when units are sold? Will this be available on a statement? I am pretty sure it won't exceed yearly CGT allowance but it will be nice to know. Busy googling as well.
 
If you bought them all at the same price then it's just: (Sold Price - Bought Price) x Number of Units.

If you bought them over a period of time it's a bit trickier. I think you use average bought price in that case. Not sure how you would find that if you are not selling all of your units.
 
There is always that one guy. Dude, do you know there is a Ignore function on forum? After your first attempt, I won't even see your posts. Cool, isn't it?
 
mervman said:
I like to max out my 40k capital gain allowance every year. Even if you don't spend it- buy back the shares or units again so that your base cost is higher for next time.
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How do you calculate allowance especially if units are bought over a period of time? ( Today's price - Average price over X period) * number of units to arrive at a calculation ?
 
The institute will send a CGT statement before Tax deadline for that year. Tax Tim also has a calculator and explanations. So you can sell just enough for the year.
www.taxtim.com

Capital Gains Tax | TaxTim SA

Do your Tax Returns Quickly and Easily with TaxTim Today! TaxTim is your Friendly Online Tax Assistant - Do your Tax Return Right for Maximum Refund.
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