From the Dealing Desk- March 2018March 21, 2018
AllShare Weekly Report -May 2018May 17, 2018
I often get asked what about this “Tax free saving thing”. I thought we can have a look at why we should have a Tax Free Savings Account also see if there are real benefits to the investor. Let’s start with the reason we now have this product. This Investment vehicle was introduced by government to encourage personal savings and to lessen the social and retirement burden on government fiscus.
The returns or profits made on this account are tax free and Investors will not pay any capital gains tax on these returns. An investor can contribute a lump sum to the maximum of R33 000 a year or do monthly or ad hoc payments into this account. The total a single tax paying investor can contribute is R500 000 over his or her lifetime but this will probably be revised upwards as time goes on.
Benefits of this account:
No tax paid on capital gain of these funds
Investors have a choice of how to invest by lump sum or monthly contributions
Funds are not fixed
No limits on the term of investment. The longer the funds are invested the bigger the benefit is to the investor.
Investor can choose various asset classes the want to invest in. For example equity funds, bond funds, cash funds.
I have provided a chart of the Satrix 40 which is an ETF that the Tax Free Savings account is allowed to invest in.
If you are interested please contact Isabell Treurnich at:
012 644 0111
082 891 4934
Or Sidney Launspach at:
031 584 6497
084 337 5583