There are continued economic difficulties faced during the COVID-19 pandemic. As such, financial security has become increasingly important, and the time to maximize your savings is now – and you can do it tax-free!
The tax-free investment mechanism was introduced some years ago and is a good way for people to save money effectively. In the face of economic turmoil, job uncertainty and salary cuts, tax-free investing enables people to enjoy the benefits of paying no tax on earnings, regardless of the investment period.
Research has shown that the levels of saving in South African have been poor, which has intensified by the current climate – the consequence of prolonged financial uncertainty stemming from the pandemic. Moving forward, society needs to have a changed mindset and embark on a sustained savings program, by setting aside emergency money.
Investors are freed from paying income tax on the returns from their tax-free Investment accounts and may invest up to R36 000 per tax-year and to a lifetime limit of R500 000. Exceeding the prescribed limits will, however, result in penalties.
Start investing from R500 a month, and grow wealth effectively for financial security in an uncertain future. The TFSA is particularly for those not yet in the habit of saving and as a means of inculcating in our youth the culture, habit and self-discipline of saving, instead of living for today.
It is YOUR responsibility to think about the uncertainties of tomorrow. Our financial experts have been unpacking and providing practical advice on the best ways to preserve YOUR financial freedom. Contact our financial advisors to ensure that you are receiving shariah-compliant finance advice.
Anglowealth is an Authorized Financial Service Provider (FSP Number: 46755)