Investing
Government has long incentivised retirement savings through a range of tax concessions. Individuals are allowed to contribute up to 27.5% of their taxable income, capped at R350 000 per year, to retirement funds, including RAs, on a tax-deductible basis.
A lack of adequate retirement facilities and the prohibitive costs of retirement homes has resulted in many retirees being forced to explore alternatives for their post-retirement living other than what they had planned for. For many retirees, assisted living, frail
Any disposal of your offshore investments triggers a capital gains event, with the gain being calculated as the difference between the value at the time of sale and the base cost of the purchase. This means that, if you sell
One key advantage of purchasing a living annuity with your retirement capital is that it is not subject to Regulation 28, allowing for more aggressive investment strategies, including 100% offshore exposure via Rand-denominated feeder funds. Direct offshore investing is not
If you hold both discretionary and compulsory investments, structuring your withdrawals tax-efficiently is key to preserving your wealth. You must also manage drawdowns from your living annuity carefully to prevent premature depletion of your capital or future cashflow constraints.
If leaving a financial legacy for your loved ones is important to you, you may favour the idea of a living annuity as opposed to a life annuity.
The mechanics of a pyramid scheme hinge on two primary elements: (a) an upfront entry fee or initial payment promising substantial returns in a short time frame, and (b) the necessity to recruit new members. Participants typically ascend through various
Purchasing a sectional title unit also grants you full ownership, with the property registered in your name through the Deeds Office. Like freehold properties, you’ll be responsible for bond costs, transfer duties, and conveyancing fees.
If you are declared insolvent, Section 37B of the Pension Funds Act provides that the funds in your retirement annuity are protected from your creditors, although this does not mean that your RA funds enjoy complete protection from creditors.
Don’t fall into the trap of assuming that the Consumer Protection Act affords you blanket protection when it comes to buying property. In reality, this piece of legislation only comes into play if the seller regularly sells property or markets
