End of tax-year closing in, don’t forget to do this!

The end of the financial year is in sight, and perhaps this explains the fast-paced, jam-packed schedule we have been juggling for the past two months. Trying to get out of the vacation mindset is a struggle we can all attest to, and keeping track of the ever-growing tax to-do list is not always the easiest. Are you forgetting anything?

Taking advantage of the closing tax year has a lasting impact which could make all the difference in starting your 2023 financial journey on the right note – not just for this year but for years to come. And even better, it’s as straightforward as a quick contribution to your tax-free savings account and/or retirement annuity!

Here’s how:

Retirement Funds: Start by maximising your tax savings. Contribute up to 27.5% of your taxable income (capped at R350 000)  to your retirement fund. In addition to getting a head start in your investments, you are also reducing your taxable income. Less tax to SARS and more money in your (future) pocket!

Tax-free savings account (TFSA) : Another valuable favour you can do for yourself and your finances is by asking your advisor: “ How much can I still contribute to my TFSA this year?”. The maximum contribution allowed is R36 000 annually. Besides having the benefit of tax-free interest, capital gains and dividends, you could possibly even provide the future you with your dream retirement. Picture this…

14 Years of contributing R36 000 annually would equate to roughly R500 000. If you were to start this process at 30, by 44 you would’ve reached that target. And then, compound interest does the rest of the work for you!  At an assumed rate of 10% growth annually and undisturbed funds, you could retire with R8.1 mil at age 65.  To really emphasize this, that would mean 25 years of R27 000 going to your pocket monthly.

*Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances

Remember, it’s never too late to start saving but the biggest mistake you could make is by thinking that it is.

So, take that step while the opportunity is still available.

Closing dates for contributions to TFSA and RA products:

Ninety One 24 February before 13h00
Allan Gray 27 February before 14:00,

Inter-product transfers 22 February

Sygnia 21 February
Glacier 24 February,

Inter-product transfers 17 February

Sanlam 20 February
PPS 23 February

*Please note that we need to receive all instructions by 20 February 2023 to ensure your contributions are processed in time.

Place your future first, it’s the most valuable thing you’ve got to lose.

Get in touch with us here.

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