A gift that just keeps growing
AS a parent, rather than spending hard-earned money on soonto-be forgotten toys or designer clothing, think about investing towards your child’s future with a Tax-Free Savings Account.
“Having recently become a mom, I have come to know that, as parents, we want our children to have the best things in life, and one of the key things I would like to gift my child is a good financial future,” said Cannon Asset Managers Fund Accountant Silindile Ngubo.
“From the very first sight of my son, I made a commitment to provide him with everything that I myself was not fortunate enough to have. That’s why I’ve decided to invest in a Tax-Free Savings Account on his behalf,” she said in a statement.
“However you look at it, approximately 18 years of savings without any tax being charged on the growth or returns is a bargain,” she added.
Tax-Free Savings Accounts (TFSAs) were introduced in 2015 to encourage and support saving.
Every person can invest up to a maximum of R33 000 each year (or R2 750 a month), and up to R500 000 over their lifetime in a TFSA without paying a single cent in tax on your investment’s growth and returns.
This means that the investments are free of taxes such as Capital Gains Tax, and taxes on the interest and dividends earned, giving your savings a powerful boost over time.
Parents are able to invest in a TFSA on behalf of a minor child, but this investment will count towards your child’s lifetime limit. Cannon Asset Managers recently introduced four unique TFSA investment bundles on the EasyEquities investment platform, available for investment via the EasyEquities website and easyto-use mobile app.
These include Global Growth, Assertive Growth, Balanced Growth and Capital Preservation TFSA bundle options.
Each of Cannon’s four investment bundles features a tailored blend of Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs) to match the specific needs, investment time horizons, and risk appetites of different investors.
— Business Editor.