Welcome to the New Year!
We trust that you and your families have had a blessed festive season and wish you all the very best for the year ahead. May 2021 bring you good health, peace and all the wonderful things that you wish yourselves! Above all else, we pray that you and your loved ones remain healthy in 2021.
We will re-open on Monday 11th January 2021. Whilst we would love to see all our friends and clients early in the New Year, it would not be prudent to meet each other face-to-face in view of the current upsurge in the Coronavirus. We do not wish to put our friends in any danger, so in the interests of the well-being of all our clients and staff, we plan to operate remotely and are happy to meet on Microsoft Teams or Zoom. The world is changing and as Kenneth Matos, PhD, the Vice President of research at Life Meets Work states: “The secret of crisis management is not good versus bad; it’s preventing the bad from getting worse!”
Welcome to the first
newsletter of 2021. We plan to bring you topical investment news and market
information monthly. We hope that you will find this newsletter informative and
useful and that it will assist you in making informed investment planning and lifestyle
decisions.
We would like to hear from you. If you would like us to discuss any particular investment topic, product or strategy please let us know and we will try to address the subject in a future newsletter.
Retirement Annuities
The financial year end is just around the
corner. You may wish to consider increasing your retirement annuity debit
orders or making lump-sum contributions to your existing retirement annuities.
Retirement annuities are a great way to save
for retirement and for reducing your annual tax payments. Here are some
of the benefits:
- Contributions are tax-deductible within certain limits.
- There is no income or capital gains tax applicable
during the term of the investment.
- Dividends tax does not apply to Retirement Annuities
- Unclaimed or disallowed contributions may be deducted
on retirement.
- At retirement, the remaining value (minimum two-thirds)
can be transferred to an annuity to provide a regular monthly income in
retirement.
Please contact us early if you would like to add to your existing retirement annuities as there is always a logjam towards the end of February.
Tax-Free Savings are a great way of reducing tax!
Tax-free savings provide South African Investors with an
excellent opportunity to save towards long term goals without having to pay tax
on interest, dividends, and capital gains!
You may invest up to R36 000 per year in tax-free
investments, with a lifetime maximum limit of R500 000. A word of caution!
Investors should not exceed these limits as the South African Revenue Services
will levy a penalty of 40% on any amount above the maximum amounts.
Tax-Free investments are a great way to save for your
children’s education. If you have children or grandchildren, you can give your
family the education they need. With a tax-free investment, you can help give
your family the future they want. No interest tax, no dividends tax, no capital
gains tax- and no exit penalties.
Please contact us early if you would like to add to your existing retirement annuities or invest in a tax-free investment as there is always a logjam towards the end of February.
We wish you all a healthy and happy New year! Stay safe and well!
