Investments (Local and Offshore)
Collective investments are a very convenient and low-cost way of investing in markets which you otherwise would have found difficult to access. You can also share in the rewards of the Johannesburg Securities Exchange and other markets without running the risks of direct investment. Investors can switch portfolios as and when their needs and risk profiles change and they can increase, stop or decrease debit orders without penalties.
Experts experienced in the investment arena are managing your money on a daily basis and ensuring your peace of mind. Collective investments are liquid and easily accessible. You can sell all, or part, of your investment at any time. However, we recommend that an investment in collective investments should be viewed over a medium- to long-term 3 – 5 years or longer.
You know what you want in life, however you can’t figure out how to achieve it. You do all the attraction exercises as they are outlined in various well-known books and nothing is happening. Your life continues without any changes. One of the reasons this happens is because your goal is not specific. Goals must be specific. Knowing the specifics about your goal helps you envision it more clearly, and anything you hold clearly in your mind, you move towards that much faster. Plus, having specific goals have the added benefit of being measurable.
Of all the reasons for investing, one of the most compelling must surely be for your children’s education. We want you to enjoy your children’s learning years without having to be concerned about the cost of a good education.
It takes careful planning and a disciplined investment approach to ensure you can afford the rising cost of education. Education is a gift for all time, your children can take it everywhere they go. Give them the opportunity to learn and see how they grow and enjoy a successful future.
Tax Efficient Investments (Unit trusts)
Unit trusts are tax-efficient investments. Dividend income received from a collective investment scheme in property shares is subject to income tax. Dividend income received from non-South African sources (i.e. foreign dividends) is also subject to income tax in the hand of the investor. Interest income accruing to a collective investment scheme is exempt from income tax to the extent that it is distributed to investors.
Investments in Retirement annuity funds may be beneficial from a tax perspective. A retirement annuity fund can be used by a self-employed person or by an employee, either in place of, or in addition to their pension fund. On retirement, one third of the total benefit may be paid out as a lump sum, with the balance being paid in monthly instalments. Although the monthly annuities will be subject to tax, the contributor may deduct the contributions to the fund, subject to certain limitations.