Investing can start small and you don’t need to have millions. What you do need to do is have a very clear idea of what you want your money to do for you.
Investing carries a number of tax breaks that you can use to your advantage to grow your nett worth.
Endowment products with a minimum 5 year and maximum 15 year contribution do not get taxed on the payout.
The taxes are calculated before declaring your earned interest.
You can earn income from investment products and the first R 32 000 is exempt from income tax. Stock options, investing in stocks can earn you dividends, this is tax free income.
Retirement annuities are tax deductible. Up to a maximum of 15% per year can be discounted from your taxes if you invest in your own retirement plan.
When you are considering investing you should set aside around half of what you intend to use for low risk, low return investments.
This will help protect your bucks against the time value of money, or inflation. The other half should go into high risk investments that carry a larger rate of return.
This will help grow your money and in time make you rich.