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How to extract maximum value from the new Tax Free Savings Accounts

Also read the following related articles we have on this potentially powerful way to grow your wealth without paying a cent in taxes:

* How to maximise the benefits offered by Tax Free Savings Accounts

* The best Tax Free Savings Accounts in South Africa

* Tax free savings accounts 101 (and why they’re NOT what they’re made out to be)

* Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

By using a Tax Free Savings Account (launched on 1 March 2015) you can save and invest in a variety of vehicles without ever having to pay a cent in taxes on any returns within these accounts.

No Capital Gains Tax, no Dividends Tax and no Income Tax from interest earned…

We interviewed Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa, about how to get the very most from a Tax Free Savings Account.

We also took a call from Stuart Theobald, MD and Analyst of Intellidex, whose company created a Tax Free Savings Account investment calculator.

Listen to the audio (scroll down) for more detail.

These accounts show their value over the long-term. Get to the lifetime limit as soon as you can and keep it there for as long as possible.

Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa

These products are a no-brainer. But how do you choose a product? We developed a tool to help people match their objectives with the right product. It also shows what your projected returns are.

Stuart Theobald, Intellidex MD and Analyst

First pay off short-term debt; then put your money in your bond. Then create an emergency fund with three months’ salary. Then invest in your retirement annuity and then your tax-free savings account.

Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa

Compare Total Expense Ratios and initiation fees. Costs make a huge difference over the long term.

Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa

This is a long-term product; you need exposure to equities otherwise the benefits won’t be that much.

Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa

This article first appeared on 702 : How to extract maximum value from the new Tax Free Savings Accounts


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