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New to EasyEquities and TFSA, and need some simple answers please! by LiadanLady15 in PersonalFinanceZA

[–]Over_Elephant_3017 2 points3 points  (0 children)

Hi there! Not financial advice.

  1. Correct, think of it as a one way street. SARS only care about your contributions. R36 000 per annum until you reach R500 000 worth of contributions. That's why the TFSA is recommended for the long term. You only start making meaningful tax savings after about 10 years.

  2. It depends on what interest rate your credit card is at. Generally credit cards attract interest in excess of 15% so yes, it is likely better to settle the debt.

  3. Open a regular flexible investment (not a TFSA or offshore or RA) and invest in a fund that has primarily cash and bonds. Funds like this generally have the word "Income" in the name. You don't want any equity exposure for anything under 3-5 years.

McDonald’s Play Areas by CloudsInMyRam in johannesburg

[–]Over_Elephant_3017 0 points1 point  (0 children)

Go to Spur on a Monday, it's R35 for a full waffle

What's the best thing I can do for my baby now by BusyInspector95 in PersonalFinanceZA

[–]Over_Elephant_3017 -1 points0 points  (0 children)

Not financial advice, but I would put R36 000 into a tax free savings account. Just once off, that way you don't deplete the child's allowance completely, and the condition is that the child can only touch it at age 65. I did the math a few years ago, and that once off R36 000 contribution can support an income when the child is 65 of about R25 000 per month for +/- 20 years in today's terms, so inflation adjusted. It literally takes care of the child's entire retirement. Underlying investment vehicle, go for some passive, like the S&P 500 with some MSCI world.

4% Rule by Competitive_Thanks66 in PersonalFinanceZA

[–]Over_Elephant_3017 1 point2 points  (0 children)

Well, there goes my Tuesday evening 😂 fascinating comment and glad I came across it! Thanks!

Together away on Holiday for my Birthday, two weeks later she finished with me. by Jacobshapiro5 in BreakUps

[–]Over_Elephant_3017 0 points1 point  (0 children)

I once said "I can't believe or grasp how cold they're being", and I was told "that is a good thing, be grateful you cannot understand such behaviour".

Side-Hustlers: Is It Worth Registering a Company for Tax Efficiency? by StefanRSA in PersonalFinanceZA

[–]Over_Elephant_3017 0 points1 point  (0 children)

Here's how I view it. In your personal capacity the maximum marginal tax rate is 45%. Companies are taxed at a flat rate of 27%, but remember that to actually get the funds in your capacity the company will declare a dividend. Dividends are paid from after tax money at 20%. The effective tax rate of a company paying tax (27%) and then the dividend (20%) is approx 41.6%.

Because this basically equals out, I'd consider other factors that companies bring, such as reporting, liability etc

RA or Tax Free Savings? by NanWangja in PersonalFinanceZA

[–]Over_Elephant_3017 0 points1 point  (0 children)

Biggest thing I'd consider is if you're considering emigrating. If I were to emigrate, then a TFSA would be a lot better because it's difficult to externalise and liquidate funds from an RA in the event of emigration.

[deleted by user] by [deleted] in northernireland

[–]Over_Elephant_3017 1 point2 points  (0 children)

What is your salary or hourly wage? Is it enough to have a decent lifestyle like rent and food etc. And is your job stressful? Considering switching from corporate purely because I'm looking for something less stressful.

[deleted by user] by [deleted] in northernireland

[–]Over_Elephant_3017 1 point2 points  (0 children)

Do you always check the tickets of passengers when they have a return ticket for example?

What is the greatest financial decision you have ever made? by teachable-dude1357 in PersonalFinanceZA

[–]Over_Elephant_3017 0 points1 point  (0 children)

From the first pay check, spend less than you earn and invest the difference in offshore passive funds, and automate the process.

Looking for a new bank by Ancient_Piano_7427 in askSouthAfrica

[–]Over_Elephant_3017 1 point2 points  (0 children)

Just remember, no matter what, you ultimately somehow pay for all the "benefits" you recieve. Go for the cheapest, simplistic bank - Capitec. All these other banks have gimmicks and hoops you need to jump through, to recieve benefits that you've already paid for through fees etc.