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CityPress - - Business -

Most schools of­fer dis­counts of up to 10% if you pay the fees in full at the be­gin­ning of the year. This also gives you the op­por­tu­nity to start sav­ing for the fol­low­ing year’s school fees. For ex­am­ple, if you pay 2017 school fees up­front, then you save on the monthly pay­ments for the year. If th­ese are in­vested in a high-in­ter­est ac­count over the year, then you would be able to pay 2018’s school fees up­front with­out us­ing next year’s bonus.

Pay less tax:

You can in­vest 27.5% of your bonus tax free into a re­tire­ment an­nu­ity or top up your com­pany re­tire­ment fund. This will boost your re­tire­ment sav­ings by sav­ing on tax.

Pay less for your short-term in­sur­ance:

Of­ten, short-term in­sur­ers are pre­pared to give up to 15% dis­count on pre­mi­ums if you pay them as a lump sum at the be­gin­ning of the year. Make sure you use the monthly sav­ing to ei­ther pay off your debt faster or in­vest more.

The ex­am­ple be­low demon­strates the value of a re­cur­ring in­vest­ment into a re­tire­ment an­nu­ity after 10 years Fund value (in­clud­ing tax ben­e­fit) The ex­am­ple be­low demon­strates the value of a re­cur­ring in­vest­ment into a Tax Free Plan after 10 years

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