Its becomming irresponsible to leave too much in one's pension funds! Pension funds either own too much debt (which is failing), too many equities in an underperforming economy that is valued in a depreciating currency, or too much in foreign equities that are debt driven and overvalued. Times have changed!!!

In this example you paying 31.1% in tax to withdraw R25k. If you lucky you might only make that up after 3 years ( if you left that R25k in your pension it would have grown ). Only touch the 2 pot if its a matter of life or death, like if u starving for food or need and organ

@FinanciallyFabulousFemales

2 күн бұрын

I hear you, but to withdraw you must value growth outside Reg28

@menzimngadi6793

Күн бұрын

The government is sticking us

The benefit of contributing towards an RA helps with lowering ones income tax, in some cases up to 45% of contribution capped at 350k per annum. That's a 45% return. The savings can then be invested into a TFSA, which will also gain tax-free interest. There are TFSA which one can invest into higher interest ETFs, all tax-free. You could withdraw your 25k and invest it, but you'll be taxed on it further on the interest, so it doesn't make sense to get double charged on interest. People in South Africa are terrible at saving. An RA might be the only secure vehicle they can gain long-term wealth on. I would avoid withdrawing from my RA, given the tax benefit and long-term creation of wealth.

@FinanciallyFabulousFemales

2 күн бұрын

The tax benefits of an Retirement Annuity should be weighted against Reg 28. The JSE has not grown in dollar terms in the last 10 years. While traditional retirement products should be the base of retirement income for most conservative South Africans, it should not be the only thing, when looked at in terms for post-retirement taxes and LA withdrawal limits.

With my Vested pot, why am I not allowed to invest it in Government Bonds and make 11.5% interest per annum!?

Thank u so much Yolanda so much clear now I can make a better decision

@FinanciallyFabulousFemales

10 күн бұрын

@@molebohengmokoena9486 glad you found it helpful, it’s important to get financial advice according to your situation

You're too sharp! Thank you.

@FinanciallyFabulousFemales

2 күн бұрын

I appreciate that!

I get it👍guys stop jumping about the 15% it's an example, thts why she's saying do your research /see a financial advisor. If you choose this road remember you will be paying foreign tax, if you invest in companies like Tesla etc, which is offshore . so do research and when you are done, do research again just for good measure , remember it's your hard earned money not a give away present for someone.

@FinanciallyFabulousFemales

4 күн бұрын

Glad you understand

To get a 15% return per annum is highly unlikely.please show me which fund in the last 5 years grew at 15% per annum.

@FinanciallyFabulousFemales

6 күн бұрын

@@hanifhanifalli2359 it’s not one fund, it’s multiple funds, investment wrappers, market adaptations etc

Saudia Arabia had decided not to renew it's petrodollar agreement with the US

I'm definitely taking it.

@jono8080

2 күн бұрын

Sucker, the government is counting on it.

Interesting , how much do advices cost

@FinanciallyFabulousFemales

Ай бұрын

There is no charge for a complimentary appointment www.solomonwealth.co.za/getstarted

What about interest earned on investments come tax session?

@FinanciallyFabulousFemales

9 күн бұрын

@@James66662 different investments have different tax liabilities. You need to plan for that before you actually invest.

please don't stop making these videos 😭🙌

@FinanciallyFabulousFemales

Ай бұрын

Glad you find value

Hi which investments that have double digit do you recommend?

@FinanciallyFabulousFemales

2 күн бұрын

Right now bonds are giving double digit returns but you can't throw all your money into bonds. Get financial advice.

This is for the huge risk takers aka gamblers. Achieving 15% per year is a mammoth task which would mean picking stocks or crypto and hoping these assets will be able to sustain their growth rates over the 20 year period. If R25k is less than 1% of your total retirement fund, I would consider taking that gamble.

@FinanciallyFabulousFemales

2 күн бұрын

Yes, this suggestion is certainly not for the conservative investor. I did mention that this is a "higher grade" option to consider. I think time in the market should be a bigger consideration over how much you have in pension.

@user-si2jm2yu9l

2 күн бұрын

@@FinanciallyFabulousFemales The nature of the investment is highly aggressive which means stock picking and crypto which should not make up a large % of your retirement portfolio hence how much in your pension is quite important. Time in the market is irrelevant if you picked a stock or a crypto currency that crashed. And to find a fund that returns 15% in the long term would beat the S&P 500 growth is nearly impossible.

Can I take all the money on both the two pot systems and start afresh?

@FinanciallyFabulousFemales

2 күн бұрын

You can fully withdrawn from the vested pot when you resign, and withdraw from the savings pot as well, but you should have a sure fire plan to catch up on the loss and opportunity cost. I don't recommend that option.

Too many suppositions and less facts

Higher rates = Higher risk.

@FinanciallyFabulousFemales

2 күн бұрын

Yup...high risk is not for everybody

Really Lady ... what crap are you selling the audience !!! You are not telling the audience the salient costs by investing their money in 'alternative' products !!!

@FinanciallyFabulousFemales

2 күн бұрын

Cost's vary greatly. The investor must do DD.

What happens to your retirement pot if you decide to resign after September 2024.

@FinanciallyFabulousFemales

4 күн бұрын

You will be able to access your vested pot according to the current rules

What about service reduction?

@dabeezkneez8716

5 сағат бұрын

This is what I'm most concerned about. It's a double whammy!

Is it advisable to resign and start over so that your retirement funds don’t get affected

@evelyn_rampola

6 күн бұрын

No.

@FinanciallyFabulousFemales

4 күн бұрын

No it's not, please get financial advice to understand the 2 pot better

10% is too small.. the government will profit more..

@FinanciallyFabulousFemales

2 күн бұрын

They are expecting 5 billion

Where are you gonna get a nett return of 15%in any economy currently

@FinanciallyFabulousFemales

2 күн бұрын

You need a thorough understanding of Reg 28 and the markets to see that kind of return.

@kiwiplays4423

11 сағат бұрын

Please help with the 15%

Don’t touch it - Don’t withdraw. Tax implications will crucify you in the long run.

@FinanciallyFabulousFemales

2 күн бұрын

The tax penalty is huge, but I did show you how to mitigate that hit.

Yes but where will you get a 15%

@FinanciallyFabulousFemales

Ай бұрын

Lots of options available you are ready to take on risk

@benjaminrobertson254

Ай бұрын

@@FinanciallyFabulousFemales what options do i have.

@FinanciallyFabulousFemales

20 күн бұрын

@@benjaminrobertson254 Speak to an advisor for financial advice. Book an appointment if you don't have a financial advisor

@MthimkhuluD

20 сағат бұрын

Don’t touch that money . This is terrible advice .

If you withdraw from your pension you steal from your old self.

No, you should not touch it, fml, the nerve of some of you to tell people what to do, wtf who do you think you are???

@FinanciallyFabulousFemales

Күн бұрын

@@Shawn-ts4jw 🤣 I didn’t tell you what to do, I showed you things to consider

@FinanciallyFabulousFemales

Күн бұрын

@@Shawn-ts4jw I also did a video on why you shouldn’t withdraw

This is terrible advice. You have tax-free compounding within the retirement fund. Why withdraw?

@FinanciallyFabulousFemales

2 күн бұрын

@@MartinHesse-y8u 1. reg 28, 2 Deferred tax, 3 Liquidity control, 4. Other investments options

@FinanciallyFabulousFemales

2 күн бұрын

@@MartinHesse-y8u also it’s not advice

@MartinHesse-y8u

2 күн бұрын

@@FinanciallyFabulousFemales Reg 28 now allows for 45% of investment to be offshore, which is plenty if you are retiring in SA. Your example of a consistent 15% return is totally unrealistic. You don't factor in the tax-free compounding if you leave the money within the fund. Regarding point 2, most retirees go into a lower tax bracket and there are greater concessions for over-65s, so don't pay the same amount of tax as when working - that's the beauty of saving in a retirement fund. And no it's not advice in the legal sense, but who among your viewers would know the difference?

@peterkemp4235

19 сағат бұрын

@@MartinHesse-y8u ...yes it is interesting that finances falls in the hands of people who supposedly work in your "interest" ...but the gvnmt spends as much effort as possible to tax earners...is TEAL feasible to thwart this ?