simons article is very good and he tells u his choices.if u beleive that current sa market is high and that overseas is where the growth will be then an overseas etf would suit that philosophy.or u could wait to c if there will be a correction before end of Feb next year.I personally am drawn towards an property etf>i am a fan of sa property shares/reits which I have had for the last 19 years and have served me well.although some say these have also run high.obviously cash is a waste in the long term as there would be zero capital growth-good luck oh there is also an article by someone else on moneyweb-this is a hot subject and there are lots of suppliers vying for your money-watch out for fees-a high charge can seriously dent the power of compounding
Very easy! I've just registered an account via OST (will take 2 days to open). It's no brainer especially due to the fact that it allows tax free transfer of money from your existing account to new TFA. Also, another benefit is that it seems that one can open accounts for ones spouse & kids over the age of 7. Agree - do not waste money opening accounts with high broker fees. I think that it will be unlikely for many other accounts to come lower in fees than Standard Bank's OST when it comes to these accounts.
My personal view is to use the tax free option exclusively for REIT's. The tax saving on dividends is negligible (10% of the dividend) but returns from property funds are taxable as income with could be as much as 40% depending on our tax bracket (and their yields are in the 6% range - so double the whammy). So a tax free vehicle for these makes a lot of sense.
Just make sure the additional accounts that you open, clearly state the name of spouse and each child otherwise it will be deemed that you have opened additional accounts for yourself - big problem if you have 4 TFSA accounts, all registered in your name and you have funded them for more than allowed R30 pa. I suggest open a separate OST account for every person, in their own name and in that OST account, register an additional TFSA account for each person.
If you open a normal online Standard Bank account for your kids, you can then open a TFA for them at any age. I have opened two for my two daughters - one is 11 months and one is just under 3. Not as buy/sell efficient as an online trading account - similar buy/sell rules to the Auto Share Invest account apply - but you can open them. Process was quick.
Any thoughts on DBX world..?? Might look at Proptrax ten if it is available on Std bank internet banking platform.. Any thoughts on splitting a R2500 pm debit order into more than one ETF or throw it all at one?