THREE that could SOAR: Get my urgent penny stock plays for 2020
Read my new, urgent briefing and discover:
• Why property is still the best investment
• Thanks to a shortage of pork and chicken in China, this South African poultry business could see a 106% increase in its share price in less than 12 months!
• This penny stock health administrator has been quietly buying up market share and very few investors have noticed… But that’s all about to change… And when the mainstream catches on its share price is going to explode
1. Maximise your retirement contribution!
Most people forget they can max out their retirement contributions using once off contributions. You get to contribute a maximum of 27.5% of your income (or remuneration) to an annual maximum of R350,000.
Often these adhoc top-ups can be done through your HR department so you don’t even have the temptation of the funds being in your bank account to spend.
You should also consider the costs within your retirement vehicle. Employer mandated retirement schemes are generally expensive, so evaluate if it’s better to source a lower cost solution for your top-ups.
Some older RA policies are very expensive with layers of fees and not much flexibility.
2. Use your capital gains exemption
Every year you get R40,000 capital gains exemption and while this seems small, over time it will allow you to adjust the base costs of your winning investments to a point you save multiples of this annual exemption in capital gains.
However, something most people are forgetting is the tax liability of their investments in crypto currencies (Digital assets).
Some people are still holding onto positions they entered at the crypto price peak, the losses on these can be used to offset against capital gains elsewhere.
SARS even have new codes for you to disclose CGT profits and losses as well as Income profits and losses. In certain instances, losses will be ring fenced.
3. Take advantage of tax breaks
Tax-free Savings accounts: Most people often overlook pushing money into their children’s tax-free savings accounts.
They don’t want to max out their lifetime contribution limit. This is misguided as you can build a portfolio of Rand hedge assets (Offshore focused ETFs) that don’t attract any taxes. This can compound over time and provide for foreign tuition if necessary.
S12J: The flavor of the month, Section 12J funds give you the ability to write off your full investment against taxable income in the year it is made.
This provides significant benefits for individuals who have already maxed out all other tax minimizing strategies and still won’t reduce or defer their tax burden. There are many articles on S12J funds on popular financial websites like MoneyWeb and Fin24 and FSPInvest
In Just 94 Days You Could Have Banked 389% on the USD/ZAR, 52.88% on Brent Crude and 37% on US 500!
And you could have made these gains from the smallest market moves – DOWN or UP!
Make 25% per year with this sustainable investing product
Investec have created South Africa’s first ESG structured product. ESG (Environmental, Social and Governance) investing refers to a class of investing that is also known as sustainable investing.
Investec’s latest AutoCall will give investors 100% downside protection, provided the index doesn’t fall more than 40% within five-year term.
The annual return is fixed at 25%, with the opportunity to receive your capital plus 75% growth after year 3 if the index is flat or positive.
If not, it rolls over to year 4 where the same observation happens, but you can bank 100% growth. If the index is still down on the 5th anniversary, investors will receive their capital back plus 125% growth if the index is flat or positive.
If not, the investor will receive 100% back if the index isn’t down 40% or more.
If you would like more information on the above product, please contact me at firstname.lastname@example.org
. Or call 0873516669 to chat to me.
Minimum investment is R100,000.
Finova Capital, Wealth Manager
P.S: Grab a copy of Joshua Bentons The Little Book of BIG Income – Ten Filthy Secrets to get Rich Quick is HUGE.