Savings and Investments

Savings and investments play an important role in your financial wellness. Savings are funds that are kept aside to achieve short-term goals. Investments, on the other hand, are assets that are acquired with the aim of increasing income over the longer term.

<p style="text-align: center;"><strong>Build your wealth, tax free. Start today!</strong></p>
<ul>
<li style="text-align: left;">Save and avoid tax on interest, dividends, or capital gains</li>
<li style="text-align: left;">Maximum yearly limit of R36,000</li>
<li style="text-align: left;">Beat inflation by growing your money over time by investing in local and global markets</li>
</ul> - Image
Tax Free Investment

Build your wealth, tax free. Start today!

  • Save and avoid tax on interest, dividends, or capital gains
  • Maximum yearly limit of R36,000
  • Beat inflation by growing your money over time by investing in local and global markets


Invest Now
<p style="text-align: center;"><strong>Reduce your tax and boost your retirement savings.</strong></p>
<ul>
<li style="text-align: left;">Maintain your standard of living in retirement</li>
<li style="text-align: left;">Flexible and transparent plan with access to one of the best unit trusts</li>
<li style="text-align: left;">Contribute as little as R1,000 per month</li>
</ul> - Image
Retirement Annuity

Reduce your tax and boost your retirement savings.

  • Maintain your standard of living in retirement
  • Flexible and transparent plan with access to one of the best unit trusts
  • Contribute as little as R1,000 per month


Invest Now
<p style="text-align: center;"><strong>Meet your short and long-term saving goals.</strong></p>
<ul>
<li style="text-align: left;">Minimum contribution of R1,000 per month</li>
<li style="text-align: left;">Beat inflation by growing your money over time by investing in local and global markets</li>
<li style="text-align: left;">Low cost and flexible, with the potential for greater returns than saving in a bank account</li>
</ul> - Image
Targeted Investments

Meet your short and long-term saving goals.

  • Minimum contribution of R1,000 per month
  • Beat inflation by growing your money over time by investing in local and global markets
  • Low cost and flexible, with the potential for greater returns than saving in a bank account


Invest Now

Tax Free Investment

What is a tax-free investment (TFI)?

A tax-free investment is an investment tool whose returns attract no taxes. Tax-Free Investments were introduced as an incentive to encourage household savings. This incentive was initiated on 1 March 2015. Government regulations cap the investment level at R36,000 per tax year, with a lifetime ceiling of R500,000 per individual.

JustMoney has partnered with Beanstalk Online Investments to provide you with a TFI with highly competitive returns.

How much do you need to contribute?

A minimum monthly contribution of R1,000 and a maximum of R3,000 applies to the JustMoney TFI. 

You can also make lump sum payments of a minimum of R10,000 and maximum of R36,000 per year, or a once-off lifetime lump sum payment of R500,000.

More information on TFIs

  • If you have an existing tax-free savings account with a bank, you can switch it to a tax-free investment at no cost.   
  • Any person (including minor children) can have more than one tax-free investment. However, the annual limitation is an aggregation per every year of assessment. For example, you can invest R11,000 (with Old Mutual), R11,000 (with Investec) and R14,000 (with Absa) but the total across all three investments cannot exceed R36,000 per annum or R500,000 in total for your lifetime.  
  • You can open a Tax-Free Investment on behalf of your child, but be aware that all contributions you make on their behalf will be debited against their lifetime limit.
  • Note that any portion of unused annual limit is forfeited (that is, it is not carried forward to the subsequent year of assessment).  

Example: 2020 Year of Assessment - Annual limit is R33,000

  • Taxpayer X invests R27,000
  • The unused portion of R6,000 is not rolled over to the subsequent year of assessment

Example: 2021 Year of Assessment - Annual limit is R36,000

  • Taxpayer Y invests R40,000
  • A penalty will apply: R40,000 less R36,000 = R4,000 x 40% = R1,600 will be payable to SARS.
  • This penalty is added to the normal tax payable on the notice of assessment. 
  • Note that when returns on investment are added to the capital contributed, the balance may exceed both the annual and/or lifetime limit. The capitalisation of these returns within the investment does not affect the annual or lifetime limit.

Example:

  • If a person invests R36,000 for the 2021 year of assessment and the return on investment is R5,000, which is capitalised, the total amount in the investment will be R41,000. The growth amount of R5,000 is not regarded as a contribution. 
  • If the investor withdraws the return on investment of R5,000, and invests that amount in the same tax-free account, that amount is a new contribution and impacts both the annual and lifetime limits. The same principle will apply if any portion of the capital is withdrawn and reinvested in the same tax-free investment.
  • Tax-free investments cannot be used as transactional accounts.
  • Debit or stop orders and ATM transactions will not be possible from these investments.

Why should you open a TFI?

  • TFIs are flexible, you can withdraw money from your investment anytime. With the JustMoney TFI, the waiting period is only 5 working days.

Retirement Annuity

What is a Retirement Annuity (RA)?

A retirement annuity is an investment vehicle that allows you to save for your retirement. It was introduced to help individuals who are not members of a pension or provident fund, in order to maintain their standard of living when they are no longer working.

An RA can be helpful if:

  • You work for an employer that doesn’t offer a retirement plan
  • You’re self-employed
  • You’re a freelancer
  • You're an employer who wants to supplement their provident or pension fund

How does it work?

Your contributions will be invested in low-risk platforms that will help you earn great returns. With the JustMoney RA, you can contribute as little as R1,000 a month with no maximum limit. Alternatively, you can make lump sum adhoc payments of a minimum of R20,000. 

The funds can be accessed when you reach the age of 55, unless you’re retiring due to ill health, or emigrating, or if your savings are less than R7,000.

You can only withdraw one-third of your investments. The rest must be transferred to a living annuity, which will provide regular income during retirement.

What are the benefits of investing in an RA?

  • Every contribution to your retirement annuity reduces your tax liability.
  • Capital gains, dividends and interest are tax free.
  • On maturity, you can access one-third of the funds, the first R500,000 of which is tax-free.
  • The remaining two-thirds is allocated to an annuity that pays a monthly income.
  • The funds in your RA are not part of your estate and therefore no creditors can touch them.
  • You achieve compound growth because it’s a long-term investment.
  • You don’t have access to your funds until a certain age, which allows your savings to grow.
  • You can stop contributing to your RA without incurring any penalties or fees.
  • Investing in an RA allows you to diversify your investments. It even gives you access to offshore markets (limited to 30% as per regulation 28).

The tax payable for lumpsum benefits is as follows:

R1 – R500,000 – 0% of taxable income

R 500,001 – R 700,000 – 18% of taxable income above R500,000

R 700,001 – R1,050,000 – 27% of taxable income above R700,000

R1,050,001 and above – R 130,500 +36% of taxable income above R1,050,000

Targeted Investments

What is a targeted investment?

A targeted investment is an investment tool that pools clients’ contributions into a unit trust fund for investment in various assets in local or offshore markets.  These assets can include shares, bonds, property, hedge funds and other securities. When the assets have generated returns the fund manager will divide the investment into units and allocate the returns according to your contribution to the fund.

What are the benefits of a targeted investment?

It is affordable: You don’t need a large sum to invest in a targeted investment. With our partner, you can contribute a minimum of R1,000 per month or a lump sum of R20,000.

You’ll have access to a diverse portfolio: A targeted investment allows you to invest in different assets and minimize the risk of relying on a single asset.

Your funds are managed by experts: With a targeted investment, you don’t have to manage your investments. You’ll have an expert who will help you get maximum returns on your investment.

It’s a liquid investment: You can easily sell your investments and get cash whenever you need to. Even if the targeted investment shuts down, you’ll still be able to receive your money.

It’s safe: Our partner is registered and governed by the FSCA and the underlying fund manager is a member of the Association of Investments and Savings SA (ASISA). This means your investments are safe from illegal and irresponsible traders.  Furthermore, your withdrawals will be paid directly to your bank account. No third party is involved.

Costs are reduced: Since the fund managers are buying assets in bulk, they’re able to obtain a discount. This will save you money and ensure that your capital is not reduced by a significant amount.

How long should you invest for?

This is dependent on your goal. Ideally, you want to invest for as long as possible to gain the advantage of compounding growth*. The longer the term of the investment, the higher risk profile you can select, thereby achieving a potentially higher growth over time. Shorter-term investment goals require a lower selected risk profile in order to reduce exposure to market volatility.

*Compounding is the process in which an investment’s earnings, from capital increasing in value or interest, are reinvested to generate additional earnings over time. This growth occurs because the investment will generate earnings from both its initial contribution and subsequent growth from the start date.