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| What are the experts cooking inside their TFSAs? |
So I did just that! And, in the true spirit of the South African personal finance community, most of them were more than happy to help out.
I found some of the responses really interesting, and they all provide some food for thought. I must stress however that none of the below is investment or financial advice. Remember a TFSA is usually only a small part of a bigger overall investment portfolio, and everyone has their own goals, timelines and risk appetite.
And also, as Nerina Visser put it - "And as a woman, I always reserve the right to change my mind, as time goes on, and new information comes to light :)"
In other words, please don't read too much into this, always invest according to your own goals, risk appetite and time frame.
Okay with the formalities out of the way, here we go...
In no particular order (except
alphabetical), this is what some of the more well known financial peeps are
holding inside their TFSAs.
---
Simon Brown
Founder of Just One Lap
www.justonelap.com
Twitter: @SimonPB
I hold:
- Satrix Property ETF 31.8%
- Ashburton Global 1200 ETF 36.6%
- Sygnia Itrix MSCI World ETF 29.5%
Maya Fisher-French
Founder of Maya On Money
Twitter: @mayaonmoney
All my TFSA's – kid included – are with Satrix. I hold the Divi Plus as I'm a firm believer in dividend investing. Right now it has a yield of 4.5% - if you consider that matches a drawdown rate, it's a powerful retirement tool.
I don't hold offshore as my non-TFSA money is all invested directly offshore. That forms a significant part of my retirement plan along with my local RA. My TFSA is a tiny portion of my investment base at this stage considering it was only introduced a few years ago.
Warren Ingram
Executive Director of Galileo Capital
www.galileocapital.co.za
Twitter: @WarrenIngram
I have been buying the Nedgroup Property Fund in my TFSA since TFSA's were launched. To date, it has been a bad decision if one reviews performance but I like the high levels of income generated by the fund and hope that the performance will recover.
Over the long term I would view the income generated from this TFSA as a way to pay for our medical aid costs (if those are still around).
Bright Khumalo
Portfolio Manager at Vestact and host of Velocity on BDTV
www.vestact.co.za
Twitter: @briteless
I’m a balls to the wall kind of guy and right now I think RSA is extremely cheap as you’ll see by my split. As a super young man with some healthy appetite for risk I have a 50/50 split of the Sygnia SWIX Index and the Sygnia Skeleton 70.
Charles Savage
CEO of Easy Equities & Purple Group
www.easyequities.co.za
Twitter: @csavagegt247
I hold the Emperor Core Flexible Equity (Everest) Bundle. It consists of:
Dr. Adrian Saville
Founder & Chief Executive Cannon Asset Managers
www.cannonassets.co.za/
Twitter: @AdrianSaville
My "go to" option is the Cannon Global Growth portfolio because it has the highest compounding potential, underpinned by hard currency with greatest optionality. If I lived on Mars and could allocate capital anywhere in the world, inside of a TFSA, this is the place to invest – it is where our children's TFSAs are invested.
Michael Treherne
Portfolio Manager at Vestact
www.vestact.co.za
Twitter: @mwtreherne
In my account I have the Ashburton Top 100 through FNB. At the time I signed up they were the cheapest around, and I get great e-bucks! Then for my wife, she is in the Coreshares S&P 500. Both are funded through a monthly debit order, to give me dollar cost averaging.
All my TFSA's – kid included – are with Satrix. I hold the Divi Plus as I'm a firm believer in dividend investing. Right now it has a yield of 4.5% - if you consider that matches a drawdown rate, it's a powerful retirement tool.
I don't hold offshore as my non-TFSA money is all invested directly offshore. That forms a significant part of my retirement plan along with my local RA. My TFSA is a tiny portion of my investment base at this stage considering it was only introduced a few years ago.
Warren Ingram
Executive Director of Galileo Capital
www.galileocapital.co.za
Twitter: @WarrenIngram
I have been buying the Nedgroup Property Fund in my TFSA since TFSA's were launched. To date, it has been a bad decision if one reviews performance but I like the high levels of income generated by the fund and hope that the performance will recover.
Over the long term I would view the income generated from this TFSA as a way to pay for our medical aid costs (if those are still around).
Bright Khumalo
Portfolio Manager at Vestact and host of Velocity on BDTV
www.vestact.co.za
Twitter: @briteless
I’m a balls to the wall kind of guy and right now I think RSA is extremely cheap as you’ll see by my split. As a super young man with some healthy appetite for risk I have a 50/50 split of the Sygnia SWIX Index and the Sygnia Skeleton 70.
Charles Savage
CEO of Easy Equities & Purple Group
www.easyequities.co.za
Twitter: @csavagegt247
I hold the Emperor Core Flexible Equity (Everest) Bundle. It consists of:
- Satrix Divi ETF (22.18%)
- Satrix 40 ETF (18.67%)
- Satrix S&P 500 ETF (13.11%)
- Stanlib S&P 500 Information technology ETF (12.07%)
- Satrix RESI ETF (8.75%)
- Satrix MSCI World ETF (8.23%)
- Satrix Fini ETF (5.77%)
- Ashburton MidCap ETF (4.36%)
- Satrix Nasdaq 100 Feeder Portfolio (3.14%)
- Cash (2.44%)
Dr. Adrian Saville
Founder & Chief Executive Cannon Asset Managers
www.cannonassets.co.za/
Twitter: @AdrianSaville
My "go to" option is the Cannon Global Growth portfolio because it has the highest compounding potential, underpinned by hard currency with greatest optionality. If I lived on Mars and could allocate capital anywhere in the world, inside of a TFSA, this is the place to invest – it is where our children's TFSAs are invested.
Michael Treherne
Portfolio Manager at Vestact
www.vestact.co.za
Twitter: @mwtreherne
In my account I have the Ashburton Top 100 through FNB. At the time I signed up they were the cheapest around, and I get great e-bucks! Then for my wife, she is in the Coreshares S&P 500. Both are funded through a monthly debit order, to give me dollar cost averaging.
Kristia van Heerden
CEO of Just One Lap
Twitter: @kristiavh
Since our single ETF strategy Fat Wallet episode, I've been stocking up on ASHEQ. I like that ETF for its wide diversification and emerging market exposure. I also enjoy getting dividends to reinvest - my opportunities to play around in my investment account are limited to reinvesting my dividends. I like the simplicity of a single ETF strategy. It helps me be less reactive when things go wrong in the world. I only have to keep track of one choice.
Nerina Visser
ETF Strategist at ETFSA
www.etfsa.co.za
Twitter: @Nerina_Visser
Well that was fun! And super interesting!
And wow, what a diverse range of choices (ranging from a single holding to 10 different holdings, passive to active, and simple to complex)!
Which does make me wonder - this article may well have left some of you a little perplexed as to how best to approach your own TFSA investment. If this is the case, then I want to leave you with something Kristia said when submitting her contribution to this article:
"In these tax-free accounts, hitting your allocation every year is way more important than what you choose. Because there's no tax liability, these accounts offer a wonderful platform to figure out your own investment style. If you choose the wrong ETF, you can rectify it later by contributing to one that's better suited to you. Like most people, I took a while to hit my stride. That I chose differently at the beginning didn't hurt me in the least. Don't let the choice of ETF keep you from starting. You got this!"
That is pretty solid! Remember your choice of investment has significantly less of an impact than not investing at all!
Since our single ETF strategy Fat Wallet episode, I've been stocking up on ASHEQ. I like that ETF for its wide diversification and emerging market exposure. I also enjoy getting dividends to reinvest - my opportunities to play around in my investment account are limited to reinvesting my dividends. I like the simplicity of a single ETF strategy. It helps me be less reactive when things go wrong in the world. I only have to keep track of one choice.
Nerina Visser
ETF Strategist at ETFSA
www.etfsa.co.za
Twitter: @Nerina_Visser
- Local Equity (25.1%):
- CTOP50 – 11.4% (broad-based domestic equity market, core holding)
- ASHMID – 3.7% ("SA inc" shares, relative value after long period of underperformance)
- STXDIV – 6.3% (high dividends)
- DIVTRX – 3.6% (consistent dividends)
- Local "Bonds" (9.8%):
- PREFTX – 9.8% (preference shares, highest yield)
- Local Property (12.6%):
- PTXTEN – 12.6% (high yield, asset class diversification)
- Global Equity (40.0%):
- STXWDM – 21.5% (broad-based global equity market, core holding)
- GLODIV – 9.1% (higher yield, investment style diversification)
- STXEMG – 9.4% (broad-based emerging market exposure, longer term high growth)
- Global Property (12.5%):
- GLPROP – 12.5% (asset class diversification, higher yield)
Well that was fun! And super interesting!
And wow, what a diverse range of choices (ranging from a single holding to 10 different holdings, passive to active, and simple to complex)!
Which does make me wonder - this article may well have left some of you a little perplexed as to how best to approach your own TFSA investment. If this is the case, then I want to leave you with something Kristia said when submitting her contribution to this article:
"In these tax-free accounts, hitting your allocation every year is way more important than what you choose. Because there's no tax liability, these accounts offer a wonderful platform to figure out your own investment style. If you choose the wrong ETF, you can rectify it later by contributing to one that's better suited to you. Like most people, I took a while to hit my stride. That I chose differently at the beginning didn't hurt me in the least. Don't let the choice of ETF keep you from starting. You got this!"
That is pretty solid! Remember your choice of investment has significantly less of an impact than not investing at all!
Till next time, Stay Stealthy!
- ~ - ~
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