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Community


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Online Share Trading

Engage and learn about markets and trading online

Tax Free Shares

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David99755
Contributor
I have just opened my account, any recommendations/thoughts on what to buy?
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16 REPLIES 16
Blik
Super Contributor
Check Simon's post on Moneyweb yesterday
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geordie1
Super Contributor
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
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Nordic2
Not applicable
Could you guide me in how to open a Tax free account? I have a common trading account, is it possible to open a tax free account within a common trading account?
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Vano
Regular Contributor
My Account // Product registration // TFSA registration
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AP
Regular Contributor
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.
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Not applicable
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.
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geordie1
Super Contributor
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geordie1
Super Contributor
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Barend1206
Contributor
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.
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AP
Regular Contributor
Thanks - great advice! I'm holding Nepi & Rock Castle. Are they taxed as income (@41%)?
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Blik
Super Contributor
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.
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Vano
Regular Contributor
I had the impression that REITS were not allowed in the tax free account?
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warhippo
Super Contributor
Vano, go to Instruments and then TFSA Enabled instruments - list of all.
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Vano
Regular Contributor
@warhippo, I see only ETFs tradable on TFSA, no Real estate investment trusts, no ordinary shares. Closest will be PTXTEN, I think. Where am I going wrong?
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warhippo
Super Contributor
Vano, I think what you see there is what you can trade.
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Funnymoney
Frequent Contributor
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?
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