Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

Tax-free, what to buy?
Super Contributor
Read more blogs in

Tax-free, what to buy?

tax-free.jpg

 

Disclaimers first. I am more than 10 years from retirement hence a high-risk portfolio and this is what I have bought and balanced the values when I added the new R33k this tax year.

 

DBXWD 40%

Global emerged market exposure nice and simple. One could go with the S&P500 ETF, geographies are the same but in DBXWD financials are the largest sector while in the S&P500 IT is the largest. Which will be better? I have no idea nor do I care to try and guess but I have been buying DBXWD for years and am happy with it.

 

CSEW40 40%

The Top40 equal weight ETF. I will always take equal weight over market cap weighting as it reduces the large stocks exposure (in Top40 right now the top 7 stocks are over 50% of the index).

 

PTXTEN 20%

Always some property as a different asset class with decent yields and this one is top ten equal weighted. One could also use the new Satrix Property (STXPRO) which tracks the S&P SA Composite Property Capped Index and caps the stocks at 10%. Alternatively the offshore GLPROP (DBXWD has some 5% in global property).

 

What's in your tax-free account?

 

Simon

Read more blogs in
4 Comments
Occasional Contributor

I have two, mine and the wife's. Mine DBXUS(50%) and CSEW40 (50%) excluding this year's R33000, not sure yet what to do with it. I saw an article that it could be possible in future to have some high interest rate savings in it as well. Do you know anything about that?

Super Contributor

I read that as well, not sure how high they mean when they say 'high interest'? Surely just money market? You can get that with a tax-free call account via a bank or the NFTRCI ETF from ABSA. this is a three month rolling money market?

 

But some thoughts, only really for retirees? And right now you get a tax-free on interest earned (+r20k or interest tax-free) so not sure the appeal, unless they plan to either do away with tax-free on interest or stop increasing the limit so as too make it useless?

Senior Member

My 1st 30k is in DBXUS but the subsequent contribusions I have allocated to Investec both for me and wife. It is a 12month roll over @ 8.85% effective. It suit me better as I am getting closer to retirement and can change it to montly payout on roll over when needed.

Senior Member

I started last year in Feb with DBXWD - but it has done nonething since then. Bought equal amounts of DIVTRX and PTXTEN - still about R30k in cash waiting for an inspirational moment...