A road trip to financial freedom
| Financial freedom | Retirement | ETFs |
|---|---|---|
| TFSA and tax tips | Offshore | Property |
| Markets | Investment terms | Fees |
Topic: tax-free savings accounts and other tax tips
In the words of The Beatles, "Let me tell you how it will be There's one for you, nineteen for me 'Cause I'm the taxman." If you're new to the world of paying tax, make sure you use all your tax deductions while always staying on the right side of the taxman.
If there’s only one investment product in your long-term investment portfolio, it has to be a tax-free savings account (TFSA). Since TFSAs started in 2015 the number of TFSA providers have grown rapidly, pushing fees down (great for investors). But the levels of service you get with these products vary. Where do you go for the best tax-free account in SA?
This year I picked a global equity fund for my TFSA and started wondering how the Allan Gray TFSA gets around the dividend withholding tax charged on the offshore listed companies in which I’m invested via the fund. It turns out, there’s no avoiding it. TFSA investors do pay withholding tax on foreign dividends and interest.
A tax-free savings account (TFSA) is a gift from an unlikely benefactor: SARS. Sceptics can be forgiven for ignoring this product, but they are, unfortunately, missing out on significant future tax savings. Exactly how much tax will a TFSA save you?
Few things stop first-time investors as dead in their tracks as needing to make a big decision. Most people know they want to invest tax efficiently, but which one of the two most popular tax wrappers should you sign up for: a tax-free savings account (TFSA) or a retirement annuity (RA)?