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Your chance to secure an R8 million rand tax-free retirement with one “no-fuss” investment

by , 01 April 2015

I was sitting at my laptop drinking my morning coffee and scrolling through unread emails from the previous day.

One email that caught my eye was from etfSA.co.za. I read about a brand new way to take advantage of a Tax-free Investment Account (TFIA). And, when I read it, I just had to share it with you!

In fact, if you do use this TFIA today, you could earn up to R8 million tax-free! And it's all thanks to a newly released Exchange-Traded Fund (ETF).

Now wouldn't this be the cherry on the cake for your retirement. So, let me explain a bit further…
The easy way to reduce risk and boost long-term growth

The great thing about this ETF is it's a no fuss investment built for your comfort to put your mind at ease.

Managing Director of etfSA, Mike Brown confirms, "ETFs are ideal for tax-free schemes. They pay higher percentage of income through dividends and interest. So the tax-free impact of reinvesting your income is perfect for growing your wealth".

Invest tax-free with this excellent ETF you can't afford to lose out on

Diversify your portfolio with six of the best ETFs

The etfSA Equity tax-free equity investment option is the one I want you to consider. It's a high risk ETF with the intention of retiring tax-free capital growth. This portfolio previously returned nearly 28% per year over 5 years.

Through this ETF, your cash is invested into a variety of great performing ETF's that track companies locally and internationally – giving you some offshore exposure!

1. Satrix FINI ETF (15%) – your money is invested in the top 15 shares in the financial sector on the JSE.
2. Satrix INDI ETF (20%) – allows you to invest in the top 25 shares in the Industrial sector on the JSE
3. RMB MidCap ETF (10%) – this fund invests in the 41st to the 100th largest companies on the JSE in terms of market capitalisation. RMB MidCap pays a distribution quarterly to investors made up of any dividends or interest earned from the underlying shares.
4. DBX MSCI World Index (25%) - will essentially track the developed world's equity markets for you, giving you exposure to offshore companies and markets.
5. The Grindrod DivTrax Aristocrats ETF (15%) – tracks an index of South African shares that have a proven track record of paying dividends and growing their dividends over a five-year period. So this is a great investment for clients looking for reliable dividend income in your portfolio.
6. Grindrod Low Volatility ETF (15%) – looks at the whole South African market and takes out the 40 least volatile shares. Even though the shares are low volatility, and therefore low risk, it's delivered very good returns relative to a normal market-cap-weighted index which would typically have much higher volatility.

Now, if you look below, you can see how this ETF outperformed the JSE All share over 5 years and on average. 

This equity portfolio returns easily beats the JSE

  1 year (% per year) 2 years (% per year) 3 years (% per year) 5 years (% per year) Average (% per year)
ETFSA Equity Account 31.4% 28.3% 28.3% 23.6% 27.9%
JSE All Share Index 16.8% 20.1% 19.9% 18.2% 18.8%
But it's not the great yearly average returns that should get you excited. You see, one of the biggest benefits of a TFIA is its potential to give your portfolio long-term accumulation of capital.

Just take a look at what you can expect to receive if you invest R30,000 per year and reach the maximum of R500,000…

Your chance to pocket R8 million for your portfolio and retirement!

  1 year 5 years 17 years
SA government bonds R33,120 R233,817 R1,413,647
JSE All Share Index R35,640 R289,028 R3,375,777
etfSA Income account R34,110 R254,133 R1,979,479
etfSA Equity account R38,370 R363,169 R8,902,064
So how can you become a millionaire and easily secure your future retirement?

Well, it's as simple as opening a TFIA right now! For more information on how to get involved in this ETF, go to etfsa.co.za. 

If you want to find out more on how to cash in on two excellent tax-free investments, check out The South African Investor .

Always remember, "Knowledge brings you wealth"

Your chance to secure an R8 million rand tax-free retirement with one “no-fuss” investment
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