Your ability to earn an income is arguably your most important asset.
Injury, Illness or disability can occur suddenly and affect your ability to earn an income. As a result, you may be unable to pay for your living expenses to maintain your desired lifestyle. Your savings and investment contributions will also potentially cease and as a result will negatively impact the success of your retirement plan.
Tax Free Savings Accounts became available to South African investors in 2015. In the long-term a tax-free savings account provides a significant benefit as income earned from the underlying investments is tax free and any capital gains when selling units will not trigger a capital gains tax event. So, if you are already paying income or capital gains tax or looking to save towards retirement a Tax-Free Savings Account may be a suitable investment vehicle to utilise.