You recall the ‘mind blowing' emoji? That's how I feel every time I find someone without a tax-free savings account (TFSA).
After all, it's one of the best investment decisions you can make as a South African. It's a total no-brainer if you're serious about investing. And, just last week, Tito Mboweni, the SA finance minister, increased your tax-free annual limit from R33 000 to R36 000.
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Let me ask you a serious question…
How many of you believe you have enough money to last your retirement?
Well when you consider that over 50% of South Africans aren't confident they will be able to draw an income in retirement, I'm going to assume not many of you.
You see, a standard retirement annuity is simply not enough to generate the income you need, for the retirement you want... ››› more
Regular readers will recall I wrote an article a few weeks ago, which claimed that investing the full Tax Free Savings Account (TFSA) allowance for your new-born child would turn him into a billionaire by the time he retired.
Even after the effects of inflation, this investment would mean R200,000 per month income, in today's money.
An explosive claim, I know, but one that I can back up wi... ››› more
Just imagine the shock I got when I read that, “59% of TFSAs have been opened at banks, and the majority of investments are in cash.”
Really? Cash investments? That really worries me.
Think about this…
Investing in a tax-free deposit account from the major South African banks will give a return between 6%-8%. But consider that inflation is sitting at 6.1% and not going to stop th... ››› more
Do you own unit trusts, ETFs or shares?
If you do, you're paying 15% tax on all the dividends you receive.
You also pay 13.33% capital gains tax once you sell any of these. In fact, if you held them for less than three years you will end up paying up to 40% in income tax on them…
But you don't have to.
Stop paying tax on your investments today
The National Treasury introduced Tax... ››› more
A friend of mine, Isaac, decided that in addition to investing in individual shares he also wanted to save a monthly amount into an ETF. It's a hassle free way to save for the long run with lower risk than a share picking portfolio.
So Isaac contacted his bank and asked his financial advisor which ETFs would be suitable to invest a monthly sum into. His advisor actually gave him a sensible comb... ››› more
I've always been a fan of Exchange Traded Funds (ETFs). They're a low-cost way to get great returns from multiple shares with just one purchase.
But now there's a new tool that's completely changed the game.
The ETF that allows you to profit from the World at a Fraction of the Cost!
It uses a similar strategy that we use in the Unconventional Millionaire which has doubled ... ››› more
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