Help us boost returns
The Citizen|October 26, 2024
It’s crucial to leverage the power of compounding.
Pedri Reyneke
Help us boost returns

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.

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.

المزيد من القصص من THE CITIZEN مشاهدة الكل
The Citizen

TV concept for entrepreneurs

An authentic look at what it takes to build a successful product or service.

time-read
1 min  |
November 14, 2024
The Citizen

Ruud given a rude shock

As a Manchester United fan, nothing would've given me greater satisfaction than to see Erik ten Hag and his technical team succeed.

time-read
1 min  |
November 14, 2024
Makgopa will reward trust
The Citizen

Makgopa will reward trust

Bafana Bafana striker Evidence Makgopa (below) is hoping to reward the trust put in him by Hugo Broos, as South Africa look to seal qualification for the 2025 Africa Cup of Nations (Afcon) finals in Morocco.

time-read
1 min  |
November 14, 2024
FIGHT ALL IN VAIN
The Citizen

FIGHT ALL IN VAIN

SA’s skipper Markram pleased with the never-say-die attitude of his batters chasing a formidable India target.

time-read
2 mins  |
November 14, 2024
The Citizen

Sinner turns on the heat

Jannik Sinner (above) hit the accelerator at the end of each set as he cruised past Taylor Fritz 6-4, 6-4 on Tuesday night to close in on a semifinal spot at the ATP Finals in Turin.

time-read
1 min  |
November 14, 2024
The Citizen

Kiwi scrummies 'inspired' by Dupont

New Zealand defence coach Scott Hansen said yesterday the All Blacks' inexperienced scrum-halves will be motivated to face France superstar Antoine Dupont this weekend.

time-read
1 min  |
November 14, 2024
Boks will stick to own identity
The Citizen

Boks will stick to own identity

BROWN: WON'T TEACH THEM TO PLAY LIKE ALL BLACKS

time-read
2 mins  |
November 14, 2024
The Citizen

Referee Coote under scrutiny

The Football Association is investigating after a video was posted on social media appearing to show Premier League referee David Coote (above) making derogatory comments about Liverpool and their former manager Juergen Klopp.

time-read
1 min  |
November 14, 2024
The Citizen

Socceroos await 'desperate' Saudis

Melbourne - Australia coach Tony Popovic said yesterday he is expecting an energetic Saudi Arabia \"desperate\" for a result under new boss Herve Renard in their World Cup qualifying clash in Melbourne.

time-read
1 min  |
November 14, 2024
DStv loses 1m subscribers
The Citizen

DStv loses 1m subscribers

MultiChoice finally admits that, globally, pay TV growth has plateaued.

time-read
2 mins  |
November 14, 2024