Around January and February of every year, we would like to remind you to consider topping up your retirement annuity fund and tax-free investment.
According to the current legislation, you may contribute up to 27.5% of your taxable income to a retirement annuity fund and enjoy tax deductions, subject to a limit of R350,000. As the 28th February is the end of the tax year, you must calculate and pay the additional amount to your retirement annuity prior to this date, in order to qualify for tax deductions and tax refunds. Here is an example: Ms Rama has a monthly salary of R80,000. In December she received a bonus of R100,000. Every month she contributes R5,000 to a personal retirement annuity fund. Her annual income is then R1,060,000. The maximum tax-deductible contribution to retirement annuity is R291,500. Over the year she has contributed R60,000 to her retirement annuity fund, so the additional amount she may top up in her RA is R231,500 Tax-Free Savings Account You may contribute up to R36,000 to a tax-free savings account in a tax year. You must calculate how much you have contributed so far since 1 March last year and pay the additional amount to your tax-free savings account prior to the 28th of February, in order to make use of current tax year's allowance. You can also start a tax-free investment in the name of your children. Contact us today to top up your retirement annuity or tax-free investment - email service@daberistic.com There are several factors to consider when determining how much life insurance coverage you need. Here are some steps you can follow to calculate your coverage needs:
1. Determine your financial obligations: Make a list of your current and future financial obligations, such as outstanding debts, mortgages, and tuition payments. 2. Calculate your income: Consider your current income and any future income you anticipate receiving, such as raises or promotions. 3. Consider the length of your coverage: Determine how long you need your coverage to last, taking into account the length of time your dependents will need financial support. 4. Calculate your expenses: Estimate your living expenses, including housing, food, transportation, and any other recurring costs. 5. Consider any additional expenses: Think about any one-time expenses that your dependents may incur in the event of your death, such as funeral and burial costs. 6. Add up your obligations and expenses: Add up all of your financial obligations and living expenses to get a total amount of coverage you need. It's good idea to review your coverage needs periodically to make sure they are still adequate as your circumstances change. In partnership with Morningstar: In the US, 2021 ranked as the ninth-lowest peak-to-trough drawdown in a calendar year out of the past 94 years of data. That’s quite a feat, seeing as 2021 was by no means a dull year – global bonds bottomed out, we saw the Evergrande debacle unfold, Chinese tech stocks slumped and then the contagion of it all to emerging markets. Fast forward four months into 2022 and we are back to a period where market volatility and uncertainty are the order of the day and to say that 2022 has been volatile would probably be somewhat of an understatement. In partnership with Morningstar: There is certainly no shortage of things to worry about at the moment. As with all things unknown and uncertain, it is human nature to speculate how things will pan out. Although we have no actual control over the outcome, being mentally prepared for a certain outcome brings some sort of comfort – especially when it comes to our investments. Forecasting outcomes for life is one thing but humans are notoriously bad at correctly forecasting the markets and the subsequent impact events might have on their money. In partnership with Morningstar: Against the backdrop of low interest rates, is the overwhelming narrative that "there is no alternative” (also dubbed the "TINA” theory"). For a while now, “TINA” has been floated as an underlying reason for why the current bull market won't quit. In partnership with Morningstar: A Russian invasion of Ukraine could materially disrupt the global oil supply in several ways, but none are likely, in our view. As Russia currently exports around 5 million barrels a day of crude oil, Iran-style sanctions specifically targeting Russian oil exports could theoretically wreak havoc on oil markets, but they are unlikely, in our view. Given that energy exports account for 60% of all Russian exports and 30% of the country’s GDP, this would seem like a powerful deterrent or punitive response if an invasion takes place. In partnership with Morningstar: We all go into the new year full of fight and fury to accomplish our list of goals – be it losing weight, getting fit, being healthier, spending more time with family and so forth. These are all fair goals, and we should all aspire to pay attention to the areas in our life we want to improve. |
AuthorKevin Yeh Archives
January 2025
Categories
All
|