South Africa. A retirement plan few will tell you about
For those of you who do not know what a tax-free savings account is, it is basically government’s way of giving you money encouraging people to save and invest. Everything you put into a TFSA is, well, tax free.
There is no Capital Gains Tax, and you wont be taxed on any interest, income or dividends. In short, TFSAs are pretty awesome.
However, there are a few rules. You are not allowed to put more than R33 000 a year into your TFSA, and you are not allowed to contribute more than R500 000 in your lifetime. These values will hopefully be increased over time, which would be great, but for now these are the limits. If you contribute the maximum amount per year, which is R33 000, it means you will be putting in R2 750 a month. At this rate, you will reach your lifetime limit in 15 years and two months.
Read More: Money Web
