My husband and I are in our early 40s, and we both earn monthly salaries and interest from investments in a bank – an instant access account (our emergency fund with an interest rate of 8.9%) and a fixed deposit (maturing in February next year, which has R750,000 with an interest rate of 9.41%).
We were recently informed by SA Revenue Service that we are now provisional taxpayers due to this interest earned.
We currently do not have any debt and also have the following:
• A pension fund with our employers;
• Retirement annuity (RA) with a financial institution;
• Tax-free savings in a fixed deposit (limit R36,000 maxed);
• Monthly donations; and
• Medical aid deductions.
Kindly assist with the below queries to assist in optimising our investment returns through tax-efficient strategies:
• What are your thoughts about the diversification of our portfolio? Should we also consider investing in local dividends?
• Which type of investments have the least risk with guaranteed minimum returns but also are the most tax efficient?
• Is it beneficial to consider an endowment, considering we are in the 31% bracket? Will the return of the endowment outweigh the return/growth of the fixed deposit (with additional lump sum contributions to RA as deductions to offset the interest earned/tax)?
• Regarding endowments, when is the following statement applicable: "Some products are structured so that all the income from the underlying funds is shown and taxed as capital gain, meaning the entire investment could be taxed at 12% only". How can we structure endowments this way, and where can we find endowments structured in this manner?
هذه القصة مأخوذة من طبعة October 26, 2024 من The Citizen.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 26, 2024 من The Citizen.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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