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Financial adviser from Momentum, Janine Horn, provides some perspective on how South Africans should approach debt, emergency savings and retirement.
The term ‘financial freedom’ rolls off the tongue quite easily, but it is not necessarily as easy to define or to achieve in practice.
The benefit of the Tax-Free Savings Account (TFSA) is best realised when staying invested for the long term to allow for capital appreciation to take place. The tax-free interest or return earned on the investment over time can then be re-invested to get you closer to your savings goal.
The new tax year is now in full effect and even though contributions into a tax-free savings account (TFSA) for the previous financial year had to be done before the 28 February 2022, this does not mean you cannot start with good financial habits. Even though the government has not made any adjustments to the contribution limits into a TFSA this is still a good investment mechanism to encourage South Africans to get into a culture of saving.
The strongest deterrent against FSP compliance missteps is or should be: