IN THE SADDLE: Tax free?? You mean tax-free savings account!

Joshua Nuttall is on the marketing team at CN&CO client Purple Group. He writes a regular column for our blog called IN THE SADDLE where he shares the thoughts and revelations that come to him while he’s riding his bike (which he does A LOT). Our money says he will retire long before his peers, thanks to his smart approach to investing.

The majority of my blogs so far have been about cycling, life lessons and some of my view points on life. During December I spent quite a bit of time on the bike and had plenty of hours to run through my thoughts and ideas for a couple of blogs to kick off 2017. This piece is about investing in a future you and making your financial health one of your new year’s goals or projects.

I am not by any means an investment expert or guru or the like. I am, however, the proud owner of a tax-free savings account (TFSA) and all the benefits these accounts bring.

Saving is important, but it’s not always the easiest decision to make. There is the constant hammering of instant gratification knocking at your wallet. Having the discipline to put away that little bit extra now is something that your future self will be grateful for. After all, compound interest needs time to really get to work.

What is all the hype about and why did government put tax-free savings legislation in place? in the hope that it would create a better savings culture in South Africa! The goal is to develop a savings culture among South Africans and to get people to invest in their future selves. Intellidex conducted an in-depth research study to determine whether the uptake on TFSAs has been successful. (Spoiler alert: the short answer is yes!)

How can you invest or put money into a TFSA if you want to get started?

There a number of options, ranging from TFSA accounts with a couple of the major banks, to TFSA unit trusts with asset managers like Emperor Asset Management and DIY TFSA options through investment platforms such as EasyEquities. If you’re interested and want to find out a bit more about the different options, visit savetaxfree.co.za.

My pick? A DIY, EASY-to-use solution that is linked to my existing EasyEquities account. It’s my EasyEquities TFSA.

A bit more detail on why EasyEquities is my number 1 pick!

• There is a cool FAQ page that easily outlines the benefits of TFSAs
• The FAQ page uses language that I can understand and isn’t full of financial lingo, that over-complicates the message
• The investment platform is well laid out, which makes choosing your investment clear and simple
• Remember the yearly and life-time limits!!!

How do I know what to invest in once I have deposited money into the account?

EasyEquities has a cool research provider, Intellidex, who provides weekly research pieces, ETF Tuesday. These are published on the EasyEquities blog and shared on social media. If you haven’t given EasyEquities a follow, check out its Facebook and Twitter feeds.

As I said at the beginning, I am not a financial guru. Despite working in the industry I often find some confusing terms in the research. So I either turn to Google or check out “Everyone’s guide to ETFs-exchange traded funds”.

The next step? Get involved and take advantage of the TAX-FREE opportunity!

Invest in the future you and strengthen your financial health in 2017!