Motivation is what gets you started, but healthy money habits will keep you going and help you recover from setbacks.
 

1. The 45% tax is real, so it really is time to be tax-efficient in how you structure and invest your money.
   There are many ways to structure and invest your money to be tax-efficient. With our globally integrated advice, we can connect you to all the different ways to improve your wealth management tax-efficiency. 
   
   
2. How much is enough to retire? Do you have enough?
   Watch the short clips at the end of this page from a panel discussion with personal finance consumer journalist, Maya Fisher-French, Lizelle Momberg, Head of Legal and Risk at Nedgroup Investments, and Tracy Jensen Senior Investment Analyst at Nedgroup Investments. 
    

Our globally integrated advisory approach is all about understanding how we can help you make the best decisions, regardless of whether you are starting to save, are approaching retirement or are already retired.  

 

1. Investing in a retirement annuity (RA) or topping up an existing RA
2. Investing in a tax-free investment (TFI)
3. Investing in an endowment
    

RAs are ideal if you want to save on tax costs and boost your long-term retirement savings. They are particularly beneficial if you:

• are self-employed; 
• are not already a member of a pension or provident fund; or
• get some of your earnings from a bonus or incentive scheme.

If you may need access to your money before you retire, there are certain restrictions.

 

TFIs enable you to save tax-efficiently through simple, low-cost, accessible investments.

• Your interest income and capital growth are tax-free.
• The only fee you pay is the yearly investment management fee – there are no upfront, switching or exit fees.

With the tax-free contribution limit increase from R33 000 to R36 000 a year, now is a good time to make the most of the available tax benefits if you haven’t yet done so.

Click on these links to learn:

• how easy it is to invest; or 
• how to make extra contributions to a TFI through our app. 

With both RAs and TFIs, you don’t have to pay income tax, dividends tax or capital gains tax on returns. As a result, you earn higher returns, as you don’t have to give up some of your returns for tax payments. You also get up to 27,5% of the amount invested into RAs back from SARS through an income tax deduction, which means you have more money to invest.

 

In addition to enhanced returns, RAs and TFIs also:
 

1. Diversification
   Both offers access to a diverse range of local and international underlying investment options – another way to protect your portfolio from local market weakness and uncertainty and continue to grow your money. 
2. Flexibility
   You can choose to invest in regular investments, lump sums or a combination of these.
3. Low minimums
   With minimum investments from as little as R500 a month, these investments are easily accessible.
    

Endowments offer a tax-efficient and useful estate planning solution.

• Tax is recovered at preferential rates in the endowment and taken care of on your behalf.
• After the maturity date, you have access to your money through lump sum or regular withdrawals. These withdrawals will also be tax-free.
• Insolvency protection – the entire value of your investment is protected against creditors three years after it has started until five years after it has matured or ended.
  
  

Beneficiary nominations can lead to potential savings on executor fees. Where a beneficiary has been nominated, payment of the death benefit does not depend on the winding up of the estate and beneficiaries will get their money relatively quickly. Liquidity is created in the estate and beneficiaries will get the proceeds.

 

If you starting to save, are approaching retirement or are already retired – below are some videos that answer the following questions: