They’re simple – and tax-free. Plus, your child (or godchild) would be off to a great start if you begin investing when they’re very young. What’s not to love? We asked an expert to decipher the small print.
1. The basics
THE GOOD: It’s tax-free! That means you’re not liable for any capital gains tax or income tax on the dividends and interest you get.
THE CAVEAT: There’s a limit to the joy. ‘Currently, the maximum amount you can contribute to a tax-free savings accounts (TFSAs) is R33000 per year (or R2750 per month via debit order) and the maximum lifetime contribution is R500000,’ says Jaco.
2. Is it like an emergency cash fund?
THE GOOD: You can withdraw money from your TFSA at any time without any penalties.
THE CAVEAT: Because you’re allowed a maximum contribution of R500000, if you withdraw, you can’t deposit more to top it up. It’s what you’ve deposited, not what’s in the account, that matters. PLUS, at the moment, a moneymarket account would be a better place to store ready cash. ‘You can get up to 8% interest, and you can keep close to R300000 in there before you start paying any tax on the interest,’ says Jaco.
3. It may be the longest relationship of your life
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
'DESIRE IS NOT WHAT MATTERS'
Emily Nagoski wrote the book on women and desire - literally. And then her own sex life dried up. Here's what a prolonged sex drought (and a load of research) taught her about maintaining intimacy in a long-term relationship.
'We have to tell HARD STORIES'
Theatre director and playwright Yaël Farber is spending time in South Africa after her critically acclaimed run of King Lear at the Almeida Theatre in London. We chatted to her about the importance of the pursuit of truth.
THE WHY, THE WHICH & the wardrobe
We really got into it this month! Read on for more on the allure of a loosey-goosey jumpsuit, vintage-hunting and jingle-jangling jewellery, the best places to find quality African design and short-girl styling tips.
LIFT your GAME
Thought weightlifting was just for bodybuilders and powerlifters? Not so. In fact, 'lifting heavy shit' may be the secret to longevity, hormone regulation and mood for women through perimenopause and beyond.
TREATMENT PLAN ON YOUR MARKS
Armed with a six-month programme from Dr Nerina Wilkinson + Associates, Jennifer Morin set about tackling her sun damage and melasma.
PLAYING YOUR CARDS RIGHT
Here's how to get the most out of loyalty cards.
BIG SKY Country
Namibia. Twelve friends, five vehicles, 4000 km, thirteen days. Eight punctures, one angle grinder. One martial eagle, one full moon, one ghost town. Plenty of top-quality braais, maybe not quite enough oysters... and the best time ever.
IS YOUR HOME MAKING YOU SICK?
Leaks, damp and poor ventilation in old or poorly built new homes are being fingered for a growing health concern: mould.
HOW TO REALLY GET TO KNOW SOMEONE
The Korean word 'nunchi' describes 'the ability to be sensitive to other people's moods and thoughts'. It's an underrated skill that we seem to have lost.
How to write a memoir
Whether you want to share your experiences and insights with the world, leave a legacy or track pivotal experiences for yourself, writing your memoir can be a grand and worthwhile adventure. Here's some advice on how and where to begin.
