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Listen: How to grow wealth and not your tax bill

by | Feb 18, 2022

Maya (@mayaonmoney) speaks to financial planner Terence Tobin (@terencetobin) of Rich Ideas about ways to cut your tax bill whilst growing your investments.

Terence unpacks the pros and cons of retirement annuities, how to use a tax-free savings account for tax planning in retirement, and what products to stay clear of.

7 Comments

  1. Thank you for this OPEN discussion! If a pensioner aged 70, has two Max Investments (“savings”) and three Max Incomes at Old Mutual from which he draws income, how would you suggest a Tax-Free Account can now become an efficient retirement tool?

    Reply
    • Unfortunately the TFSA products are too new to really help someone in retirement – it is the long-term build up of capital while working that is the key. However, if you are exceeding your R34 500 tax-free interest exemption each year, then you could use a TFSA to build up some of your cash balances. If you transfer R36k a year (unfortunately that is the max at the moment) then any interest earned from that TFSA account would be tax-free. Worth discussing with your adviser.

      Reply
      • Thank you! I appreciate the feedback.

        Reply
        • Good day Maya,
          I have a life annuity policy, receiving payments every month, untill death as agreed on.
          Sars system shows that I am still working at impala mine, but left the company since 2018. And sars issued a correspondent against me, that i have to make payments (garnishee).my question is, should i make payments as i am pensioner without any documents like IRP5 from the work place?

          Reply
  2. morning Maya I normally watch your short brief advice on eNCA whenever I’m around my house,I just want to know whether you got a page or contact where one can go to in order to get your wisely n soundy advice..bt my question for today is why when you ask for settlement on your loan from the Bank you don’t get discount I see amount goes up instead of dropping a bit.

    Reply
    • A settlement figure includes future interest obligations. So it is not necessarily the amount you will pay. They cannot give you the exact amount as interest accrues daily. So if they give you a figure on Monday and you only settle on Friday (for example) then the final settlement figure would be slightly higher. But there is no penalty to settle a loan.

      Reply
    • Sign up for my newsletter – that is a way to get in contact

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Maya Fisher-French author of Money Questions Answered

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