Every SatrixNOW account comes with a tax-free investment account
Choose the tax-free version of any ETF or unit trust available through SatrixNOW
Deposit up to R36,000 a year into your chosen fund/s, up to a lifetime value of R500,000 (these are the limits set by SARS)
Pay no tax on the interest, dividends or capital gains that your investment generates
Reinvest all the tax you save (no finger lifted, SatrixNOW does this for you)
Experience supercharged compounding
If you were supremely disciplined about using your full tax-free investment allowance, here’s what could happen:
Reach your lifetime limit of R500,000 by investing R36,000 every year for 13.9 years.
Check your fund balance on the date of your last deposit and find R1m1.
Save R82,500 in capital gains tax2 you would have paid if you weren’t investing tax-free.
Wait another seven years and you’ll have R2m, 14 years and you’ll have R4m.
1Assumes the ETF or unit trust you chose grew by 10% per year
2Estimate for those in the highest tax bracket
|Do think of it as a long-term investment vehicle, as the effects of paying no tax get more powerful over time.|
|Do favour funds that hold growth and dividend-paying assets like equity and property.|
|Do favour local equity exposure as you’ll pay tax on dividends from offshore companies.|
|Do invest your bonus or any money received back from SARS.|
|Don’t make withdrawals as they permanently decrease your annual and lifetime limits.|
|Don’t invest more than the yearly limit as anything extra will be taxed at a hefty 40%.|