investment
Endowments also offer tax benefits to investors with a marginal tax rate of more than 30% as they effectively reduce the tax payable on investment growth. However, they require a minimum investment term of five years, allowing for one withdrawal
Preservation funds are excellent for housing and preserving the proceeds of a pension or provident fund when someone is retrenched, dismissed, or resigns. Upon leaving employment, you can transfer your retirement fund capital tax-free into a preservation fund, where investment
As with all approved retirement funds, investors can save up to 27.5% of their taxable earnings into an approved retirement fund on a tax-deductible basis, up to the annual maximum of R350 000.
Legislation permits that the owner of a living annuity can draw down between 2.5% and 17.5% of the value of his living annuity every year, with the option to review the draw down rate at the living annuity’s anniversary. Investors
A significant advantage of a life annuity is that the policyholder is guaranteed an income for the rest of her life and will therefore never run out of money, regardless of what happens to investment markets or how long she
Life annuities generally cease to exist on the death of the policyholder, except in the case of joint life annuities in which case the surviving spouse will continue to receive an annuity income for the remainder of his life or
Tax-free savings accounts can take the form of money market or fixed-term bank accounts, a unit trust investment or a JSE-listed exchange-traded fund, and can be issued by banks, long-term insurers, unit trust managers, mutual banks, or cooperative banks.
Except in the case of ill-health or emigration, investors can only retire from a retirement annuity from age 55 onwards, although they are entitled to stop contributing towards their RA at any stage without fear of early termination fees or
Rental property markets fluctuate and as a property investor you need to be prepared for times when the rental market is saturated. In a saturated market, you may find it difficult to increase your rental in line with annual inflation
