THE MAGIC OF COM­POUND IN­TER­EST US­ING A TFSA

CityPress - - Business -

YEAR 1

R31 011.50

You in­vest R30 000 a year start­ing when lit­tle Ayanda is born. By the time he’s one, it has grown.

YEAR 10

R437 749.04

By the time Ayanda is 10, his in­vest­ment of R300 000 (R30 000 x 10 years) has gained in­ter­est of more than R100 000

YEAR 20

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.

YEAR 30

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

YEAR 40

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

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