bvsoft A Retirement Annuity (RA) can lower your taxable income and potentially reduce the tax you pay at your highest marginal tax rate. The key is to contribute deliberately—after accounting for your pension, provident-fund contributions and cash-flow needs—rather than simply contributing enough to force your income into a lower tax bracket.[sars.gov][sars.gov] For the 2027 South African … Read more
A Retirement Annuity (RA) and Tax-Free Savings Account (TFSA) work best as complementary parts of a wider financial plan: use the RA for tax-efficient, retirement-only capital and the TFSA for long-term, tax-free investing with more flexibility. The exact split should reflect your tax bracket, retirement gap, access needs and risk tolerance—not simply which account has … Read more
For many South Africans, the strongest answer is not “RA or TFSA” but RA and TFSA, used for different purposes. If you pay income tax and are saving specifically for retirement, an RA often deserves priority because qualifying contributions can reduce your taxable income; a TFSA is usually the more flexible second priority because investment … Read more
South Africans can buy exchange-traded funds through several local investment platforms, ranging from low-cost, self-directed apps to bank-linked share-trading accounts. The “best” platform depends less on the brand name and more on the ETF range, total fees, minimum investment, tax-free investment options, ease of recurring contributions, and whether you want local-only or global market access. … Read more
Inflation quietly reduces what your savings can buy. If your money earns less than inflation after tax and fees, its purchasing power falls—even when the rand balance in your account is growing. Dividend stocks can help fight inflation over long periods because dividend-paying companies may grow profits, dividends, and share prices over time. But they … Read more
South Africa’s two-pot retirement system has applied since 1 September 2024. It allows you to access part of your retirement savings before retirement through a “savings component,” but withdrawals are limited, taxable at your marginal income-tax rate, and reduce the money available for your retirement.sars+1 The short version: from new retirement contributions, roughly one-third goes … Read more
First Home Finance, formerly called FLISP, is a once-off South African government housing subsidy that can help eligible first-time buyers cover part of their deposit or reduce the amount they need to borrow. It is intended for the “gap market”: households earning a combined gross monthly income of R3,501 to R22,000 that have been approved … Read more
Buying a home is one of the biggest financial commitments most South Africans will make. While buyers usually focus on the purchase price, deposit and monthly bond repayment, several substantial once-off costs can arise before the property is registered in your name. These costs—particularly transfer duty, bond registration charges and conveyancing fees—can add tens or … Read more
If you have been paying off your home loan and your property has increased in value, you may be able to access some of the equity you have built. Two common ways to do this are a home-loan top-up and a re-advance. Both options can allow you to borrow against the value in your property, … Read more
Choosing between a fixed and variable interest rate is one of the most important decisions you can make when taking out a South African home loan. The right option can affect your monthly bond repayment, your household budget and the total interest you pay over time. A variable rate may give you lower repayments when … Read more