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There’s still time to reconsider: Tax Free Savings Accounts.
The “2019 you” might be tempted to buy the latest fitness equipment, professional gadgets or toys for your weekend never to be repeated. Or, “2019 you” could invest the same amount in a choice of Investec Asset Management’s funds through a Tax Free Savings Account (TFSA). Over time your money could grow tax free into a sum that could be used for something far more valuable, like a comfortable retirement or your child’s education.
Terms and conditions
By clicking on ‘Accept’, you confirm that you understand and agree with the following statements:
Advice and investment choices:
- By law, Investec Investment Management Services (IMS) is not authorised to provide advice.
- I have chosen to invest directly with IMS instead of using the services of an independent financial advisor.
- I chose the investment solution and fund(s) I am about to invest in entirely at my own discretion.
- IMS does not provide any guarantees on my investment and therefore cannot be held liable for any losses on the performance of my investment.
- IMS will charge me an annual fee of 0.46% for administering my investment.
- The price at which units are valued by IMS will be tomorrow’s price.
- By investing in the Investec Diversified Income Fund via the IMS platform, I acknowledge that I will pay an additional 0.05%.
Use of my personal information:
- I give IMS permission to use the personal information I provide to process my application as necessary.
- My personal information will not be passed on to any 3rd party, except where necessary to complete the application process.
- My personal information will be kept secure and confidential and any data I enter is done over an encrypted and secure channel.
- My personal information will never be used for marketing or advertising purposes.
My responsibilities:
- I am responsible for providing the supporting documents that are necessary to complete the application.
- I have read and understood the information provided about the solution and fund(s) I have selected.
Benefits of a TFSA
The benefits of investing in a TFSA
Tax free savings
Both the growth and income you receive on your investment are tax free – no capital gains tax (CGT) and no income tax are levied on the dividends and interest received.
Lifetime allowance
You can invest from R500 per month up to R500,000 over your lifetime for yourself or on behalf of minors.
Power of compounding
A convenient and flexible way to accumulate savings over time – as you won't incur tax, more of your money is available to benefit from the power of compounding
How a TFSA works
How does it work?
| 1 | You select one or more funds from the Investec range of funds (Investec Fund Managers) and make a once-off and / or monthly investment into your TFSA account. |
| 2 | Based on your selection, the fund managers invest your money according to the funds’ objectives in a portfolio of assets such as equities, bonds, cash and listed property. |
| 3 | The returns on your investment are determined by the performance of these assets. If you choose to invest via a TFSA, any returns are tax free and you can withdraw at any time. |
Important information on TFSA’s
| Minimum investment amount | R10,000 lump sum or R500 per month |
| Maximum investment amount | R2750 per month R33,000 per tax year R500,000 over your lifetime |
If you exceed the maximum investment amounts, you will be subject to 40% tax. If you withdraw money from an existing TFSA and re-pay it into any of these accounts, it will be seen as a new contribution and use up a portion of your tax free limits.
Articles and research
It's all in a name
Jaco van Tonder, director, advisory services at Investec Asset Management, looks at the implications of opening a TFSA in your child’s name.
Read more
TFSAs - how to maximise the value of the tax benefit?
When can investors expect to reap the tax benefits of TFSAs and how important is fund choice?
Read more
Maximising retirement income, minimising estate duty
Paul Hutchinson, encourages financial advisors to carefully consider, not only the tax benefits, but all the financial, retirement and estate planning benefits that TFSAs provide.
Read moreImportant Information
Investec Asset Management and Investec Investment Management Services are authorised financial services providers.