Finance / Investments

[Tag11]

So... who's gonna call the bottom?

Is it time to get into the markets yet or dollar cost averaging regular buys or keep cash and stay away?

 

[KenMasters]

They say it's a common mistake for people to think they can play the markets, better to stick with a well considered portfolio for the long haul.

 

[Tag11]

well, you've gotta have some speculative investments - with money you're ok with losing.

 

[KenMasters]

well, you've gotta have some speculative investments - with money you're ok with losing.

You don’t gotta, but if it’s just for fun and it’s money you don’t mind losing, I suppose why not?

Though where you draw the line between fun and real money I don’t know.

 

[AdrianH]

They say it's a common mistake for people to think they can play the markets, better to stick with a well considered portfolio for the long haul.

100% agree with this.

Split your investments between high and medium risk managed funds, over time you'll usual make decent returns.

 

[Tag11]

You don’t gotta, but if it’s just for fun and it’s money you don’t mind losing, I suppose why not?

Though where you draw the line between fun and real money I don’t know.

well, yes of course you don't gotta.

For the record, I was leaning towards a good balanced, broad spectrum index fund or ETF that captures most of the market - and hold onto it for 3-5 years or longer - while at the same time getting the benefit of the current selloff.

 

[KenMasters]

well, yes of course you don't gotta.

For the record, I was leaning towards a good balanced, broad spectrum index fund or ETF that captures most of the market - and hold onto it for 3-5 years or longer - while at the same time getting the benefit of the current selloff.

I guess it also depends on what your aim is. For my wife and I, our eye is on a good retirement. If you're thinking short term, that's a different calculation.

Though worth pointing out we are quite impressed with the performance of the proceeds of the sale of our SA home in our money market account. No fuss and SA compound interest is wild!

 

[Tag11]

I guess it also depends on what your aim is. For my wife and I, our eye is on a good retirement. If you're thinking short term, that's a different calculation.

Though worth pointing out we are quite impressed with the performance of the proceeds of the sale of our SA home in our money market account. No fuss and SA compound interest is wild!

Yeah, I'm close enough to also be more focused on a good retirement - hopefully within the next few years actually. But the last 2 months have made it all a bit scary.

So, if you don't mind my asking, have you "financially emigrated" from SA? How do you handle the taxation on gains from your money market account?

 

[KenMasters]

So, if you don't mind my asking, have you "financially emigrated" from SA? How do you handle the taxation on gains from your money market account?

Yes, we've financially emigrated.

The SA investment side of things is tricky and we ran afoul of Danish tax law quite early on - we were in some hot water there for a bit. We didn't realise we had to pay 50% annually on unrealised gains. It seemed ridiculous to us when we heard about it, so we voluntarily disclosed our SA investment portfolios to the Danish authorities for guidance and they came at us with full force, threated jail time and all sorts. It was not a pleasant experience

Thankfully we managed to come to terms and avoid any penalties, we paid what we owed and shifted our investments to SA based RA and PP, which are tax free in Denmark since they are comprised of funds made before moving and pensions aren't taxable. Same for the proceeds from the sale of the house, we bought it when living in SA and you're not taxed in Denmark on the sale of a primary residence (which, having lived there while in SA, it counts as).

How we get the house money out of SA is another question, if we do at all (might give it to family, charity or both). But that's a problem for another day. We don't think about it, for now we just let it sit there.

 

[Tag11]

Sorry you had to go through that. 50% tax on unrealised gains is hectic! But then I guess you do get one of the world's best run countries.

As an SA citizen, I presume you are still entitled to expatriate R1m (now R2m) per person per year without a tax clearance - straight forward "holidays allowance" as it used to be called. Have you considered that? Or is the interest earned over here too attractive to consider right now? If not I can help you with a choice of charity

 

[KenMasters]

As an SA citizen, I presume you are still entitled to expatriate R1m (now R2m) per person per year without a tax clearance - straight forward "holidays allowance" as it used to be called. Have you considered that? Or is the interest earned over here too attractive to consider right now?

That's good to know, though I didn't expect we would be taxed to be honest, but as I said, we really haven't looked at it. My wife and I live modestly compared to our means, so no need for holiday allowances or such things The compound interest is also very nice, nothing this side will give you returns like that.

If not I can help you with a choice of charity

Ha, ja, many options. I quite like the idea of buying a place in the Waterfront, we've been renting in the marina there when we travel to SA recently and we quite like it. I don't know, it's also been helpful having local money handy to help out family when they need it.