Wealth Creation - One Share at a time

 

Tax-Free Equity Investments

Only 51% of South African pensioners can make ends meet after retirement, and as much as a third don’t even have enough money to cover their medical expenses …

That’s why the Government introduced the Tax-free savings accounts (TFSA), to encourage a culture of saving, promote retirement savings , reduce household indebtedness and support long-term economic growth.

The National Treasury’s also emphasized the importance that customers are treated fairly, and that the fee structure is kept relatively low to ensure that customers derive maximum benefits from such savings and investments.

With your tax-free saving account you can invest a maximum of R30,000 per year and a maximum of R500,000 over your lifetime. However you need to keep in mind, as per the National Treasury, any amounts exceeding the annual limit will be taxed at a rate of 40%.

The instruments used in this investment strategy are Exchange Traded Funds. These are equity investments that were originally designed to track market indices. Shares of listed companies are bundled together in 'baskets' and listed as a fund.

Retail investors now have the opportunity to invest in these low risk equity instruments and receive distribution payouts throughout the year.

Exchange Traded Funds are an ideal investment vehicle for the risk averse investor because of their diversification properties. The opportunities for savings are even greater now as certain funds are classified as tax-free investments only if you have opened a tax-free savings account with your broker.

Let us help you with a simple strategy to track and analyze your funds on a weekly/daily basis with ease.

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It's really that easy and hasstle free peace of mind investment.