Thanks so much for the excel sheet. I made my first investment on EE last month after watching your videos so I’m just wondering how you chose to invest offshore? Using SA ETFs for the tax benefits or directly offshore using your USD EE Account to leverage the strength of the USD?
Only a pleasure Diana. That's really cool! Congratulations on starting your investing journey! :) That is a good question. I am busy checking out all the different options and platforms available for offshore investing. Buying rand dominated offshore ETFs like Coreshares Total World on EE is the easiest way to do it and it does also provide a hedge against the weakening of the rand against the dollar, as if the rand weakens by say 50% then your ETF's value will increase by the same 50%. The only problem with this is that if the ETF is not in a TFSA then you will get klapped with Capital Gains Tax. There is also the possibility that the rand goes completely bust (as what happened in Zimbabwe) in which case hyperinflation will kill all your investments. So I am going to lean more towards investing directly into offshore markets by either using EE USD account or Interactive Brokers as I might work overseas for a while and the SA market is so small in comparison to the world, so for me personally it would make sense. But it will depend on your outlook on the country's economy and whether you are planning on staying in SA forever. But I gotta say, investing directly offshore is a whole new ball game with quite a steep learning curve, but I will soon make a video on it that will explain exactly what you need to know and how to do it :)
Thanks for the great video, I was wondering I am 3 years away from retirement, how would you suggest the 70% Equity, 20% Property, 10%Bonds be realocated according to my situation.
Hey Gary. 3 years is a rather short investment period, so I would go for a more conservative allocation like 35% equity, 10% property, 35% bonds and 20% cash. But jah, retirement planning can het complicated as there are many things to take into consideration, sp it would be wise to consult a once off fee based financial planner
This is one amazing video, i was just thinking of making a spread sheet, but was quickly dissuaded when i saw all those etf. thank you very much. i;ve decided to only turn to your instructive videos for information. Your content is amazing.
Hey Sphamandla. Jah haha the number of ETFs are quite scary and intimidating at first. But once you get a good strategy going it is just rinse and repeat every month. Thanks for watching, I really do appreciate the support! :)
Nice video! I'm just curious, how did you decide on 70% for equities? Why did you not go a bit higher? Then a follow-up question, how often and how will you adjust the allocation in the future? And the last question, if you are going to adjust it in the future, are you going to sell some of the ETFs to buy others, or are you just going to stop contributing to some and contribute more to others?
Thanks Braham. All great questions. I guess for my investment time horizon and risk profile I could theoretically go 90% Equity and 10% Property, but I do believe that the SA Property market has a good chance of performing well in the following years as it had a very bad bear market since 2008. For reference, the 1nvest Property ETF gave a 44.59% return in the past year where the Satrix 40 ETF only gave a 17.15% return. Can't say if this trend will continue in the future, but I do want to take that bet and allocate more towards Property (10% local and 10% global). The 10% bond allocation is just for stability, and with the current low interest rates the bond ETFs also performed quite well. I think at a bare minimum, I will need to adjust my portfolio at least once a year, but as I am also in the learning phase of investing my strategy might change a lot in the following couple of years. I am exploring direct off shore investments and will probably direct more of my money into the USD market in the future. When I adjust my ETFs, I will stop contributing to some and contribute more to others, just for the simple fact that you need to pay brokerage fees, statutory costs and the spread on the ETF when you sell again.
Thanks Yasin! Nice to see someone from South Korea on my channel! I absolutely love your country and its people (and this was even before the fame of Squid Game) ;).
Hi Pieter. I have a small portfolio of rental income generating properties that up until now has been my only real investment, having a property investor & real estate background for more than 30 years. I have started a balanced managed fund, RA, TFSA etc, and building an ETF portfolio. My question is: Would if be at all feasible to spend money on SA Property ETF's at all?
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Awesome video man! You deserve so much more views. You literally are the best financial investment youtuber in SA. You'll get 50k subs soon
Thanks Lorenzo! I really appreciate your kind comment and I'm glad you find value in my videos. :)
12:05 not all heros wear a cape! Thank you so much. Much appreciated 🙏🏽🥺 Coffee well deserved!
Thank you so much!
Thanks so much for the excel sheet. I made my first investment on EE last month after watching your videos so I’m just wondering how you chose to invest offshore? Using SA ETFs for the tax benefits or directly offshore using your USD EE Account to leverage the strength of the USD?
Only a pleasure Diana. That's really cool! Congratulations on starting your investing journey! :) That is a good question. I am busy checking out all the different options and platforms available for offshore investing. Buying rand dominated offshore ETFs like Coreshares Total World on EE is the easiest way to do it and it does also provide a hedge against the weakening of the rand against the dollar, as if the rand weakens by say 50% then your ETF's value will increase by the same 50%. The only problem with this is that if the ETF is not in a TFSA then you will get klapped with Capital Gains Tax. There is also the possibility that the rand goes completely bust (as what happened in Zimbabwe) in which case hyperinflation will kill all your investments.
So I am going to lean more towards investing directly into offshore markets by either using EE USD account or Interactive Brokers as I might work overseas for a while and the SA market is so small in comparison to the world, so for me personally it would make sense. But it will depend on your outlook on the country's economy and whether you are planning on staying in SA forever. But I gotta say, investing directly offshore is a whole new ball game with quite a steep learning curve, but I will soon make a video on it that will explain exactly what you need to know and how to do it :)
@@MoneyMarx I’ve taken the EE USD route with a couple of ZAR ETFs in my TFSA so I’m looking forward to that video 😊
Thanks for the great video, I was wondering I am 3 years away from retirement, how would you suggest the 70% Equity, 20% Property, 10%Bonds be realocated according to my situation.
Hey Gary. 3 years is a rather short investment period, so I would go for a more conservative allocation like 35% equity, 10% property, 35% bonds and 20% cash. But jah, retirement planning can het complicated as there are many things to take into consideration, sp it would be wise to consult a once off fee based financial planner
This is one amazing video, i was just thinking of making a spread sheet, but was quickly dissuaded when i saw all those etf. thank you very much. i;ve decided to only turn to your instructive videos for information. Your content is amazing.
Hey Sphamandla. Jah haha the number of ETFs are quite scary and intimidating at first. But once you get a good strategy going it is just rinse and repeat every month. Thanks for watching, I really do appreciate the support! :)
Thank you! I am learning so much from your videos. Much appreciated!
Hey Jenna. You are most welcome! :)
Nice video! I'm just curious, how did you decide on 70% for equities? Why did you not go a bit higher? Then a follow-up question, how often and how will you adjust the allocation in the future? And the last question, if you are going to adjust it in the future, are you going to sell some of the ETFs to buy others, or are you just going to stop contributing to some and contribute more to others?
Thanks Braham. All great questions. I guess for my investment time horizon and risk profile I could theoretically go 90% Equity and 10% Property, but I do believe that the SA Property market has a good chance of performing well in the following years as it had a very bad bear market since 2008. For reference, the 1nvest Property ETF gave a 44.59% return in the past year where the Satrix 40 ETF only gave a 17.15% return. Can't say if this trend will continue in the future, but I do want to take that bet and allocate more towards Property (10% local and 10% global). The 10% bond allocation is just for stability, and with the current low interest rates the bond ETFs also performed quite well. I think at a bare minimum, I will need to adjust my portfolio at least once a year, but as I am also in the learning phase of investing my strategy might change a lot in the following couple of years. I am exploring direct off shore investments and will probably direct more of my money into the USD market in the future. When I adjust my ETFs, I will stop contributing to some and contribute more to others, just for the simple fact that you need to pay brokerage fees, statutory costs and the spread on the ETF when you sell again.
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Thanks!
This video is awesome, very informative. You’re definitely getting that cup of coffee 😄
Thanks man! I really appreciate it.! :)
Great info. The added documents and info makes it much easier for excel illiterate people such as myself.
Dankie Willem! Ek's bly dit het gehelp. :)
Thank u very much bro wonderful content can I ask wich ETFs have the highest dividend yield
Great content and worth watching Channel. Subbed ! a fellow creator. !!!!
Thanks Yasin! Nice to see someone from South Korea on my channel! I absolutely love your country and its people (and this was even before the fame of Squid Game) ;).
Very educational! The best I've came across🙌
Awesome video as always 👌🏼
Thanks Nozi 😀 I really appreciate it 💪
This was super helpful thank you!!
You're so welcome! :)
Very helpful. I've never been good with numbers so thank you for doing the heavy lifting. Much appreciated
Happy to help Lungiswa! Thanks for watching! :)
Thanks for you generosity.
My pleasure! :)
You are a Rockstar man, thanks 😊
Thanks Archie! I really appreciate your comment 😁
Thank you so much!!
Groot plesier my maat
Your videos are all great
Nice commentaar
Hi Pieter. I have a small portfolio of rental income generating properties that up until now has been my only real investment, having a property investor & real estate background for more than 30 years. I have started a balanced managed fund, RA, TFSA etc, and building an ETF portfolio. My question is: Would if be at all feasible to spend money on SA Property ETF's at all?