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@silbo You realise you have to live beyond 55? The money has to come from somewhere. I’m not suggesting 100% RA. Just plan to withdraw at a greater rate from your taxable savings until you hit 55.

@silbo Raise what? I’m a big fan of FIRE, work to live not live to work, and if you don’t have to work to live, don’t. If you’re going to be earning >45% for the last ten years of your career, then rather max out RA then.

@silbo Likely RA is a good choice unless you will earn over R2mp/a in future. I’d go TFSA, then 50/50 RA/taxable.

@silbo Edit: I've deleted the rule of thumb as I really should finish the model first and I may have made mistakes. As for government trust, don't let paranoia influence your investment decisions. It's fine to put your eggs in multiple baskets (ie. split the difference between RA...

@silbo A few points: RA decision depends a lot on how old you are, what your marginal tax rate is, and what your marginal tax rate will be in the future (ie. will you have a higher one and for how many years). I can comment more if you provide this info. 4% rule is for a 30-year retirement in...

@thevaliantx Sygnia usually works out to be more expensive than EE as they charge unavoidable annual fees. EE’s fees are brokerage (two-off) and you can avoid the Thrive “inactivity fee” by setting up a small deposit monthly.

@mugen Re cost of EE USD vs EE ZAR, the increased forex/other costs (incurred twice, once when you buy and once when you sell) are outstripped by the higher expense ratios (incurred annually) on ZAR ETFs in fair time. Eg: Vanguard S&P500 is 0.03%, Satrix S&P500 is 0.25%. That's 0.22% per year...

@rjozen 1) Yes, gives you exposure to all of US, UK as well as Europe+Asia. 2) Yes, unless you want to vary your exposure one way or the other, VT. 3) 10X Total World is the same as Vanguard Total World, so it’s the best but there really is no need to use EE ZAR until you are investing material...

@rjozen Well done for starting on the journey of educating yourself. You seem to mostly be in the right track. That said: You are complicating things a fair deal. 10X Total World covers your US+International part of the Boglehead 3 fund plan (better than S&P500+FTSE100 - also Sygnia’s FTSE...

@elown You’re in a grey area between professional gambler and not. I’d suggest seeking advice and getting a formal opinion from a tax consultant. You don’t want SARS chasing you further down the line.

@lik Okay great. 1) should be easy to do, don’t take no for an answer. 2) definitely worth getting on that if you can afford to 3) congrats! yeh, would highly recommend paying more of the car off. 4.1) I had a look at FNB RA offering and it seems okay. Could you please confirm are you...

@lik A few pointers: 1) TFSA is absolutely wasted with an interest bearing account, since it is effectively a retirement holding. You should plan to not withdraw from it for 30-40years. Strongly encourage you to transfer (not withdraw!) the entire balance to EasyEquities (or Sygnia/Satrix) and...

@gracer You can’t add inflation to the annual nominal devaluation, it’s already baked in. The US has lower inflation/interest rates so the ZAR has to devalue to maintain parity. The average real devaluation has been about 1.3%pa. So your nominal return has needed to be 1.3% above inflation (5%).

@spiritwarrior7 Yeh, it’s also not just a simple addition calculation as you also need to account for the returns in reinvesting the dividends to get a completely accurate like-for-like comparison. But that is getting into the minutiae.

@spiritwarrior7 You can’t just look at the index level for returns, you’re missing out all dividends over the time period. As for why NOT to invest in gold: Past returns are not necessarily indicative of future performance, don’t forget. And returns don’t tell you the level of risk incurred.

@myjourneyinfaith Counting on the rand to weaken is not a reliable strategy. The expected return is zero. It is just as likely to strengthen as it is to weaken in the future, unless you know more than the market. @redpill21 outlines it more clearly in his response to the post. The dollar is...

@djj1973 It is the people taking advantage of these arbitrage opportunities that cause the parity to hold over time.

@deus_ex_machina Maybe take a minute to consider that you might not understand the information you’ve been presented (you clearly have missed the point), or the historical context of the examples you’re throwing around eg. Argentina?

@knup Go ahead :)

@knup If you are risk averse and you want to lock-in the exchange rate, then sure, convert to dollars or whatever currency you’re travelling in. The rand is not necessarily getting weaker, it’s mostly depreciating due to interest rate/inflation differentials. Yes, it has weakened in the past...