Spdr gold trust dubai19 comments
Best brokerage for option trading
How best should one establish a stable portfolio to the level where one can live off some of the returns? Do I assume a mixture of government bonds, ETFs and blue chips, bearing in mind relatively little capital?
Could you nominate a few ideal small caps, considering my age? What are the tax implications? Where would the best and cheapest place for such a trading platform be?
Assuming I had an additional R2 every month, how and what would be the best way of investing it? Some of the key components to every investment portfolio include:. To build a portfolio that can provide income takes time.
As a young investor, your primary objective would be wealth creation and not to draw income in the near future. A well-balanced portfolio will diversify across asset classes, including local and foreign bonds, listed property and equities.
Investing in multi-asset unit trusts would be the easiest way to build a diversified portfolio with relatively small monthly investments.
Younger investors do have more risk tolerance and should look towards local and foreign equity unit trusts. Investing in tax-free savings accounts TFSAs is certainly beneficial to all investors. However, there are a few matters to consider:. Numerous software programmes are available for investors to purchase to learn the art of share trading.
This could be a very expensive learning exercise, as many of these products are leveraged and your loss could exceed your capital invested. I strongly recommend that you continue your quest to research investments, but consult with a financial advisor and let the management of your money rest in the hands of an experienced stockbroker or fund manager. Once you have acquired more investment expertise then consider allocating yourself a portion of your portfolio for technical trading.
All your investments are voluntary and made with after-tax income. Provided you are earning more than R7 per month taxable income, you can invest up to R2 per month into a unit trust-based retirement annuity. You can invest the lesser of The retirement annuity is exempt from income tax and capital gains tax and is protected from creditors. The earliest you can retire from this investment is age 55 — therefore a very good savings vehicle for long-term wealth creation.
The listed South African property market offers small investors access to quality local and foreign properties through listed property shares or property unit trust funds. How do I construct a portfolio to live off?
I have the following investments Some of the key components to every investment portfolio include: Determining your investment goals Understanding the investment risks associated with different investment instruments Having realistic return expectations Knowing the tax implications of your investments Being aware of the various costs associated with the product Reviewing and monitoring your investments regularly Being patient during difficult investment cycles To build a portfolio that can provide income takes time.
However, there are a few matters to consider: Does your investment portfolio generate interest income that exceeds the R23 interest exemption? The first R40 of capital gain is excluded from any capital gains tax. Young investors need to be aware that, should they require these funds for the purchase of a property or a start-up business etc, once redeemed they may not replace these investments.
If you are not sure about your short-term needs, rather keep the TFSA for future investments. This investment is made with after-tax income and, as a salaried employee, you may benefit more from the tax deduction derived from investments made to a retirement fund or a retirement annuity.
Finally, TFSAs do not permit funds with performance fees, so you could be restricting your investment choice.