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.
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.