Will OST have this account and if so will there be the same monthly fee every month as the normal OST account? Will this account be excluded from personal return each year, or does it have to be included in the Tax return? Thanks.
Ok - got my TFSA open. Now what to do? Questions I need clarity on: Can I transfer my 30K in one lump sum at the beginning of the year, or am I limited to 2.5K per month?
I assume there are going to be limitations on what we can buy, and whether one is allowed to trade, as opposed to invest - but will SFM create those limits, as they do on their Auto share Invest account. Or is the onus on us? I imagine all will become clear soon.
You can only buy ETF's in that account, I emailed them and they sent me a list of the ETF's available for the TFSA. Interesting thing is the DBX US, and the Euro 50 and other 100% offshore ETF's are in there. I thought they would put a cap on offshore investment like the regulation 28 funds, but seems we can invest 100% of the R30 000 offshore. @Blik everything I've read says you can put the whole R30 000 in immediately no limit of R2500 a month. I see old mutual has an option that if you invest the full R30 000 in their funds you only pay 0.25% fees which is cheap, cheaper than the OST ETF option, but I'd rather have the ETF's.
Right so my 30K going in....time to start! If this is a true TFA then I assume that we can Trade in this account, and not incur either CGT or Income Tax....if that be the case, then as Simon said in his webinar, an early Christmas present indeed.
You need to ALWAYS remember its new money - so you cannot transfer in - obviously proceeds of realized investments - on which CGT ( now slightly higher effective rate) can be paid. But this is a no brainer. of course there is no estate duty saving on this - what you have when you die will be reflected as an asset. But given that most people are not thinking about estate equalizations as between spouses this is a great way to build up a separate estate in the hands of the poorer partner in a union. So there is a double CGT saving - each partner has their yearly + exemptions - and everything in the TFS's is free of CGT and of course IT. Need to look at what the bunnies out there are offering but the ETF's are great to have included.
Investment that will benefit most from tax free savings are ETFs invested in REITs. Now you can get 8% yields tax free, and reinvest IN ADDITION to R30K annual fee. With R30K GCT exemption and only 15% dividend tax, don't see much benefit by investing in normal shares.
Klapka : "4% upfront" on R250.00 pm gets lost over time as a percentage - as it applies to the entire account - and that is latkes by way of a charge once the money mounts up, besides who do you know who is going to thrown caution to the wind and invest only R250.00 pm? The whole idea is to get this R500 000 AS QUICKLY INVESTED AS YOU CAN...( 16 YEARS AND ONE DAY) . Of course you pay your investment fees... what else do you expect - to get it all for free? My problem so far is that the FINANCIAL PROVIDERS who are offering it - the TFSA are offering a very limited choice - I would like to invest in the ETF's but not only them...That means I will have to have probably three(?) accounts each with its attendant CHARGE. So far Prudential and Standard and Glacier have launched an offering - with Pru charging nothing for the account and offering Net management fees - quite nicely priced - but unfortunately zilch by way of an offshore fund - as yet. Glacier are being coy about what they will offer and Allan Gray - well only they can tell you.