Opening a tax-free savings account (TFSA) is a great way to start investing. If there is one investment all South Africans should aim to have it is a tax-free savings account (TFSA). This is an excellent investment vehicle for growing long-term...
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Make the most of tax incentives beyond TFSAs
By now, we should all be aware of the tax incentives offered by government to encourage savings via tax-free savings accounts, but Jaco van Tonder, head of Advisor Services in South Africa at Ninety One, urges us not to forget the other tax...
Five mistakes people make with their TFSA
Since 2015, South Africans have been able to contribute to a tax-free savings account (TFSA). This account was introduced to encourage a savings culture in South Africa. Although the uptake of this savings vehicle has been relatively good, many...
Listen: How to grow wealth and not your tax bill
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...
Video: Tax-free savings
Do you know how much tax you save by investing in a tax-free savings account? Sanlam Investments did the maths and found that you can save hundreds of thousands of rands. So why pay tax when you can make money? To recap: you can invest up to...
How much tax will a TFSA save you?
You could save hundreds of thousands of rands in tax, according to Sanlam Investments. In 2015 National Treasury introduced the tax-free savings account (TFSA) to reignite a savings culture among South Africans. Designed to encourage long-term...
Video: Tax-free investing
Do you know that over a 20-year period, you could give away more than a quarter of your investment returns to the taxman? That is why tax-free investment accounts are becoming so popular and why they have a place in everybody’s investment plan. The...
How to give your child the retirement you wish you had
Most parents want to leave their children a legacy, but what if you could leave your children a secure retirement? A retirement that they never have to save a cent towards and that is completely tax free? According to Nic Andrew, executive head of...
Video: Leaving a family legacy
Most parents want their children to be more financially secure than they were and to live their lives without financial stress. Many parents see their retirement fund as a way to leave their children an inheritance. The reality unfortunately, is...
Stash: save as you spend
The no-paperwork, no-sacrifice, no-fee tax-free savings account It’s not often that I’m seriously impressed by a new investment product, particularly when it comes to those offered by large insurance companies. But Liberty gets ten out of ten in my...
Previous Articles
Tax-free savings accounts – when are they appropriate?
By Paul Leonard, CFP®, Regional Head, Citadel It is often said that there are no right or wrong investments but rather appropriate and inappropriate investments. Much has been written about tax-free savings and investment accounts (TFSAs) and there was considerable...
How to stick to your financial resolutions
The secret to a successful resolution is to keep it simple and to break it down to something manageable. Financial change starts one step at a time. Instead of saying “I am going to be debt free,” rather select one debt that you are committed to paying off in 2017. If...
Don’t use your tax-free savings account for emergency savings
Research finds that the tax-free savings account is still misunderstood. If there’s one thing the financial industry is good at, it is complicating things that should be fairly simple. Tax-free savings accounts (TFSAs) were meant to be really simple long-term savings...
Do I need a retirement annuity and a pension fund?
Mokgotla writes: I am 35 years old and I want to invest R700 a month in a retirement annuity. My company is also contributing to my pension fund. Is this a good idea and how do I invest? Maya replies: Since 1 March 2016 you are able to invest up to 27.5% of your...
Why investing offshore still makes sense
Investing offshore is not about the rand or pessimism; it’s about sound financial planning. Most fund managers spent the last five years recommending that investors allocate a portion of their investment wealth offshore – yet it was only when the “Nene crisis”...
Is cash appropriate for tax-free savings?
Hlakanyane asks: I am a 52-year-old man and currently contributing R2 500 per month in a tax-free savings account with a bank. This is invested in cash and standing at R15 000 thus far. Is it better to leave it in the bank, to invest with an insurance company or go...
Saving for your child’s education
The recent student protests have highlighted the high cost of tertiary education. For many, the cost of registration alone is enough to shut the door of opportunity. The South African Institution of Race Relations has reported that only 5% of South African families...
How to manage savings as a contract worker
Evans writes: I am 30 years old and work as a contract worker, which means my salary is not fixed and ranges from zero some months to R8 000 in other months. I currently contribute R750 a month towards my retirement annuity and I also contribute R500 a month to a...
How much tax will I pay on my investment?
Dihemo asks: I have R50 000 I want to invest but I want to understand how tax works on investments. Maya replies: Tax is an important part of investing. There are three taxes that are deducted when you invest. Income tax on interest Any interest earned on your...
Turning a 21st birthday into a legacy
Johanna writes: My daughter is turning 21 and she has asked that instead of organising a party for her she would love to invest the money for herself. What is the best investment to consider as currently we have unit trusts and a share account with FNB. We are looking...