Old Mutual urges SA to join tax free savings sign-up

2016-07-22 06:41
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Cape Town - To boost the nation’s savings and steer its customers towards a greater future, Old Mutual has launched a very attractive savings plan that takes full advantage of the tax free savings legislation.

The Old Mutual Invest Tax Free Plan gives customers tax free growth with flexible investment choices and no access restrictions. Customers have a choice to access this offering with full financial advice or directly online.

The legislation initiated by National Treasury should be welcomed by all South Africans. From the findings of the 2016 Old Mutual Savings and Investment Monitor it is clear that South Africans do not save enough – nearly half (49%) of South African households are saving less than they were a year ago.

The good news for them is that the Old Mutual Invest Tax Free Plan is not only making it attractive to save tax-free, but you can also purchase it directly online.

This makes saving much simpler and easier than before. The chief incentive to save through a tax free savings account is that the growth on your savings, whether in the form of interest, dividends or capital gains, will not be taxed, maximising the opportunity for compounding growth.

The Old Mutual Invest Tax Free Plan offers all the advantages associated with collective investment schemes (providing access to a range of unit trusts from leading asset managers) with additional advantages made possible by offering the product in a life wrapper and using Old Mutual’s diverse investment capabilities.

Although tax free savings accounts allow you access to your savings at any time, Old Mutual urges customers to build up funds over the long term and maximise the tax advantage. The legislation means that there is a “Use it or Lose it” opportunity each year and if you disinvest funds you cannot reinvest them in excess of the R30 000 limit for that year.

In line with the age-old adage that “it’s time in the market that counts”, customers should rather try and build up the savings in their tax free savings plan over the long term to gain the significant impact of tax free compound growth.

For this reason it’s also true that the sooner you start to save, the better.

Old Mutual’s new savings plan includes these benefits:

- A range of funds from top asset managers;

- Very low administration fees (only 0.5% p.a. for investors in Old Mutual funds);

- In addition, if you save R30 000 a year (the maximum annual allowance) you will get up to half of your admin fees back (0.25% of the investment value per year);

- Start saving from as little as R350 a month or with a lump sum investment of R5 000;

- Access your savings and ability to change your premiums without any extra charges or penalties;

- Nominate beneficiaries and avoid estate process delays and executor fees;

- Protection from creditors in the event of insolvency;

- You can acquire a Tax Free Plan for each of your children;

* Visit taxfreesignup.co.za and open your account online in just a few minutes. Call 0860 60 60 60 or speak to your Old Mutual financial adviser or your broker today. It’s that easy to do great things.