Wealth Creation

“ Your wealth strategy, is as unique as you are.”

Respect Retirement Annuities

A retirement annuity remains a solid way of protecting one’s wealth, especially if you a business owner – entrepreneur. A retirement annuity is a savings vehicle that you as an individual can engage outside a company Pension or Provident Fund investment.

It is very likely we will see an increase in some taxes in the future. In this year budget address the Finance Minister did not introduce any significant changes on current tax  – individual or company tax .

GOOD NEWS – With effect from 1 March 2016 members are able to contribute up to 27.5% of their taxable income or remuneration, whichever is the higher. This is an increase from the current 7.5% and an opportunity not to be missed in terms of personal tax minimisation and wealth creation at retirement.

Currently members can take up to one-third of their savings as a lump sum, of which up to R 500 000 is tax free if they have not made any pre-retirement withdrawal.

Members must buy an annuity (monthly pension) with the remaining two-thirds of their retirement savings, unless their savings are below the threshold. On 1 March 2016 the threshold increased from R 75 000 to R 247 500.

Retirement annuities are protected against creditors and therefore minimise the risk associated with the current economic adversities.

OFFSHORE INVESTMENT OPPORTUNITIES – PLAN B

I wouldn’t suggest that people rush to get the money out of the country. In the early 2000s the rand lost a lot of value quickly and then slowly drifted back.

The main aim of diversification is to limit volatility or risk within your investment portfolio and thereby balance returns over time.

I think there is a good chance we will see the Rand gradual recovery in the future but I would recommend having about a quarter of wealth creation strategy outside of the country. We can guide and advice you on foreign investment opportunities as well as EU citizenship that benefit our future generations.

There are investments you can consider to achieve this objective and as a result limit volatility or risk within your investment portfolio. Use your R 1 million discretionary offshore allowance – Currently one can do this without having to obtain a tax clearance

 Our holistic approach to your company and personal tax planning has the single objective in mind to save you tax. BE TAX SMART.

With 20 years’ experience we have the knowledge and expertise  to offer a comprehensive Tax, Accounting ,Trust administration  services allowing our clients to analyse opportunities and take appropriate wealth creation action.

“Why pay SARS if you can pay yourself and create wealth”