TFSA Platform

[malvern]

23M - have a TFSA with Allan Gray that has around 150k.

I recently watched a power hour on “Just One Lap” that was really informative and noticed that Allan Gray offers a large number but not all the ETF’s that I’d like to invest into that could potentially provide better returns.

EasyEquities on the other hand has most if not all of the ETF’s.

From a transaction cost perspective eroding into compounding power would it make sense to transfer from AG to EE so that I can access a larger range of ETF’s?

Currently my admin fees are R700 on AG platform.

Does EE charge for each transaction within a TFSA?

Edit update:

I’m going to go ahead and transfer it, AG charges admin fees 0.58% p.a (next year 0.62%)

So in transferring I’d save this annually. EE would only be a once off transaction cost for entering into the ETF. This would be about R550, then there’s the issue of the R25 “Thrive” fee but I’d be able to pass that by setting up a debit order monthly.

At a PV of R150 000, average return of 10% p.a and assumption I’ll max my TFSA over the next 12 years, the difference of the admin fees at age 65 is R2.7 mil and the FV would be R17.7 mil as opposed to R15 mil with admin fees.

Obviously this is all theoretical and takes the best assumptions into account but it seems like a no brainer.

 

[dcdoggins]

@malvern Move to easyequities.
If you avoid bundles - they have higher charges - then the platform fees on EE are cheaper, although linked to how often you transact. For about five years on EE TFSA I've paid about R1,080 for a portfolio that's close to R200k.

 

[malvern]

@dcdoggins Do you have any idea how Thrive works? Do you qualify for that and do you switch between funds regularly?

 

[futureman29]

@malvern So if you want to avoid the monthly 25 rand fee just make sure you putting in more than you withdraw each month..so all my stocks are set to reinvest and then I invest a small amount each month and you can avoid that R25 fee. You will still pay a small amount for each transaction.

Can also save costs by recommending a friend than you get R50 loaded onto your account that goes towards fees each time you make a transaction.

I follow @moneymarx on you tube he has some good videos on starting up with EE money marx

 

[dcdoggins]

@malvern You need at least three Thrive points to avoid thrive R25 fee and to get discount on brokerage fee for thrive instruments (they're easily identifiable on platform). You get a 10% brokerage discount in thrive instruments for each thrive point. You reach level three of thrive for all year if your TFSA is fully funded and for one month if your deposits exceed your withdrawals. You can also donate, use multiple offerings on EE, do the education, and so on for thrive points - these thrive points are also on a monthly basis.

I have been in the same ETFs for at least the past 2.5 to 3 years and buy more of them once a month. I don't trade.

 

[bjordan]

@malvern What do you do for living to have this amount of money saved up

 

[stinna]

@bjordan ...if you used your full TFSA allowance (36k pa or just 3k per month) for the last three years you'd also be at about 150k now. provided of course you'd invested in the right funds, ie SP500 or MSCI world....

 

[appycatholic]

@stinna Fact checked. S&P500 grew 70% over 5 years so sounds about right.

You must be a child of a tax practitioner or something. When i was 20 no ways am I spending 3k/month on TFSA. Any way good for you.

 

[malvern]

@appycatholic Actually just lucky, at the age of 16 my parents put 20k away for me in it, I’m still a student but I’ve just kept chipping away at it with odd jobs.

 

[stinna]

@appycatholic heh, when i was 20, my entire month's salary worked out to 3k before tax

but yah its a tale as old as time... "if only i had started seriously saving in my younger days." thinking back now i've also spent waay too much money on stupid stuff... cars, the latest gadgets, etc etc.

like they say the best time to invest was yonks ago. next best is now.