DESPITE BEING TERMED ‘SAVINGS ACCOUNTS’, TFSAS WERE DESIGNED TO BE LONG-TERM INVESTMENTS
WITH ALMOST eight years of data now available, it is possible to analyse whether investors and advisors are ta-king full advantage of TFSAs. Despite the tax-free advantages of TFSAs for long-term savings, investors are making simple mistakes that can impact the material benefits they offer.
Tax-free savings accounts (TFSAs) were introduced in 2015 to encourage South Africans to save more. The growth and income received on a TFSA are tax-free, which means that you are not liable for any capital gains tax (CGT) or income tax on the dividends and interest received on your investment — but are investors and advisors maximising the material benefits that they offer?
Maximise your annual TFSA contribution early in the tax year
Consider that someone who has maximised their annual contribution limit from the outset would have invested R257 000 by the end of February 2023.
Interestingly, the largest TFSA account value on the Ninety One Investment Platform (91 IP) was around …
Join Now
