THE MAGIC OF COMPOUND INTEREST USING A TFSA
You invest R30 000 a year starting when little Ayanda is born. By the time he’s one, it has grown.
By the time Ayanda is 10, his investment of R300 000 (R30 000 x 10 years) has gained interest of more than R100 000
R1 235 894.23
By the time he is in university, Ayanda is a millionaire. He reached his R500 000 lifetime limit when he turned 17 and you’re no longer paying R30 000 into his tax-free account every year, but it continues to grow.
R2 536 125.22
In his thirties, Ayanda is happily married and expecting his first child, who will be well taken care of financially, thanks to Ayanda’s tax-free investment
R5 204 273.14
In their forties, Ayanda and his wife are free from financial worries and can pursue their passions while their money takes care of itself