You can choose between three savings instruments which offer you a tax-efficient investment:
- With the Tax-Free Savings Plan, you can deduct your contribution from your taxable income (thereby reducing your tax rate) AND the growth in your plan is also tax-free AND you also don’t pay tax once you withdraw the proceeds. The fees on the funds in which you invest are also limited, so you not only benefit from no tax on your investment, but you can also have it at a lower cost.
- If you invest in a Retirement Annuity, you can also deduct your contribution from tax AND no tax is levied on the growth in your retirement fund. When you one day retire, you might also be able to take a portion of the proceeds without having to pay tax on it – this depends on how much capital you have in your Retirement Annuity and other pension funds.
- If you invest in an Endowment, you don’t pay any capital gains tax (CGT) when you take the proceeds. During the term of the policy, the insurance company will pay any Dividend Tax, Income Tax on any interest earned in the fund or Capital Gains Tax (CGT) on your behalf at a specific rate. This means that you don’t need to worry about including this type of investment in your annual tax return (thereby saving some effort) and if you are usually paying tax at a rate higher than 30% you also win, as the tax rate levied against the growth in the fund is lower than that.
How we can help you
We have access to all the major investment houses AND we can help you invest your money as conservatively or as aggressively as you would like to.