I have a TFSA with EasyEquities. I would think that the same ETFs would be available in all TFSA accounts. Been contributing the max (R36k now per year. The problem with cash in a TFSA is that it would take a really long time for the tax free nature to work out. You have ~R21000 tax free on interest in the first place per year.
Currently up only 3.6% in the TFSA, have been as high as 42% in the past. SA property and Divi ETFs still negative after the last 2 years of kak.
It is such a pity because with retirement fund, you only “pay” R550 - R750 for every R1000 you deposit to it (due to the tax break)… but now the money is just sitting there and not really growing which basically defeats the purpose. Other RAs have inflated fees which takes a huge bite out of the savings. Granted, it has only been a year, but still. It is a year wasted.
I’ve actually always been against RAs and I only started one last year for the tax deduction.
For the TFSA I’m thinking of going to cash or maybe look if there are other options that EE. FNB currently has a TFSA that pays 5.5% so maybe it would be a better option until the world stabilise from all their nonsense. Then again, if things are going to get better in the future, now might be the time to buy. They do say if you consistently buy ETFs and Unit Trusts every month, then after X amount of years, you generally show a profit above market average. When I have time to think through this properly, I’ll consider my options.
Both my RA and TFSA is sitting a 4% loss after a year which is why I’m frustrated. My normal trading account by contrast is sitting at 0%, although that doesn’t count because I sold shares at between 100 and 300% profit in the last week. My overall balance has remained the same for the past year about, but I’ve sold some of my shares and then transferred out to my TFSA almost every month, so technically almost all the funds in my TFSA account is just profits from the normal trading account.
That is true, but only if you don’t have any other savings… which I suppose is usually the case, but there are exceptions.