A gift that just keeps grow­ing

Weekend Witness - - Leisure -

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.

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