As a 67-year-old, where and how can I invest R30 million tax-free while drawing down the maximum interest and principal [amount]? And what amount can I draw until I reach zero principal in 15 years? The investments do not necessarily have to be limited to SA.
Dear reader,
Investing R30 million tax-efficiently while drawing down interest and principal over 15 years is a great way to ensure financial security in retirement. I'll guide you through some potential tax-efficient options within and outside SA and calculate how much you could withdraw over 15 years.
1. Tax-free savings accounts (TFSAs)
In SA, TFSAs allow you to invest without paying tax on interest, dividends, or capital gains, but there are limits:
> Lifetime contribution limit: R500 000; and
> Annual contribution limit: R36 000.
Given the limits, you could place R36 000 into a TFSA annually to take advantage of the tax-free benefits. However, this will only make a small portion of your R30 million tax-free.
2. Non-compulsory living annuities
This story is from the October 09, 2024 edition of The Citizen.
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 October 09, 2024 edition of The Citizen.
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
Engineering assets to go
TIMED AUCTION: MACHINERY, EQUIPMENT UP FOR GRABS
Sewage at Cradle of Humankind
'STOP': INFRASTRUCTURE COLLAPSE SEES MUNICIPALITY RELEASE RAW WASTE INTO VAAL
SA food insecurity deepens as inflation bites
The number of people in South Africa able to meet their minimum nutritional needs slipped last year, as a weak economy and inflationary pressures hit households and deepened food insecurity.
SA actress on a wild ride in 'The Penguin'
MARIE BOTHA: BOEREMEISIE’ HITS BIG TIME-AND LOVES IT
At our pets' beck and call
Let's face it: somewhere along the way, pets stopped being just animals and became full-fledged members of the family.
China, Myanmar have least internet freedom in world
Washington - Myanmar and China have the world's worst internet freedom, with declines reported in a number of other countries, led by Kyrgyzstan, a study said this week.
Pretoria varsity probes EFF students after 'clear call for violence'
The University of Pretoria (UP) is investigating an incident in which members of the EFF Student Command (EFFSC) chanted the Kill the Boer song during their leader Julius Malema’s public lecture last week.
1 in 4 teenagers addicted to booze
STUDY: 26% OF KIDS GET FIRST DRINKS AT HOME’
Portrait by humanoid robot on sale
SOTHEBY’S: ONLINE AUCTION TO EXPLORE THE INTERSECTION BETWEEN ART, TECHNOLOGY
Vest made famous by rapper Stormzy sold for R16m
A stab-proof vest decorated with a union jack flag created by British street artist Banksy, similar to one worn by hip-hop star Stormzy at the Glastonbury Festival, sold in London for £780 000 (about R16 million) this week.
