Planning for a strong year

Alook at some critical things you need to tick off your financial checklist.

- Elke Brink

First, with the tax year-end approaching, ensure you are optimising your annual tax benefits.

You are allowed to invest R36 00oo per annum in a tax-free investment, up to a maximum of R500 000 in your lifetime (limits only apply to contributions, not growth).

While there is no limit to your contributions to retirement products, limits apply to the tax relief you may qualify for.

You can contribute up to 27.5% annually of your taxable income in retirement products and claim these contributions from Sars (SA Revenue Service) or deduct them from your taxable income.

Over-contribution

If you invest over and above your annual 27.5%, these contributions will be collected in a "disallowed contributions pool".

These contributions can be offset against your income tax on an annuity income later in life, essentially creating a tax-free retirement for a few years.

Ignore the 'noise'

Volatility is normal and part of investing. Stick to your strategy and don't try to time the market.

Check beneficiary nominations

Ensure your beneficiary nominations are in place, updated and correct by law. You are not allowed to nominate a trust on all types of products. If you have company benefits, ensure your HR/Payroll team has these updated and on the system.