You’ve probably heard a couple of these phrases before: Save for retirement, pay yourself first, and look after your future so that you don’t have to piggyback on someone else when you reach retirement?

And yes, it is true. You will one day reach a point where you won’t be earning a salary anymore, but you will still need a place to stay, food to eat, and stuff to do to keep you busy. And all of these “things” will cost money and this money will need to come from somewhere.

Enter the term “investments”. I’m sure most people are aware of what it means to invest money and why it is important. But seeing that it is not the norm to be properly educated about these things in school, many people will get completely overwhelmed by all the different types of investments there are, where they need to invest their money and how much they need to invest.

And I don’t blame them. I for sure was perplexed the first time I sat down with a financial advisor when he spat out abbreviations such as TFSA, RA’s, ETF’s, etc. It almost felt like I am being forced to put my money into things that I didn’t understand at all, and that scared me. And I am sure it will scare many others as well, therefore resulting in them being completely put off of investing.

So if this is you, then I am really glad you made it to this video. You are already far ahead of the pack by showing an interest in saving for your retirement and therefore I salute you, because not many people are doing that, especially not from a young age.

So in this video, I am going to keep it very simple. When looking at retirement in South Africa, there are basically two investments that are hands down the best to consider, in my opinion: A Tax-Free Savings Account (or TFSA) and a Retirement Annuity (or RA). Now I already made an in depth-video on each one of these investments that I will link down in the description and on the info cards that I urge you to watch as well.

So for the purpose of this video, I am only going to compare the two with each other, highlighting their respective strengths, and then at the end, I will give you some suggestions on which one would be the best fit for you.

Thank you for watching. Let me know down in the comments which one you prefer and why?

Here is a breakdown of the info covered in this video:

00:00 Introduction
03:09 Comparison between a TFSA & RA
03:37 1) Type of Investment
03:52 2) Tax treatment on contributions
04:58 3) Contribution limits
06:06 4) Tax on investments
06:37 5) Investment rules
07:57 6) Access to money
08:55 7) Tax when accessing money
09:50 8) Creditors and Estate duty
10:32 How to choose between a TFSA & RA?
15:04 Take Home Message

My Product Recommendations from this video: 👉

💳 Enjoy my work? Consider buying me a coffee:

💸 Here is a direct link to create your own EasyEquities account and start investing today:

💰 Create your own BLOG:

🚀 Grow your YOUTUBE CHANNEL twice as fast by having access to trending keywords in your niche:

Gear I use to create my videos: 👉

Camera:
Tripod:
Lighting:
Microphone:
Recorder:

#PersonalFinance #Entrepreneurship #Investing

___________________________________________________________________________

Who am I? My name is Pieter Marx de Villiers and I’m just an ordinary guy from South Africa who aims to retire by the age of 35 years. Follow me in my journey towards Financial Freedom in (hopefully) just a 10 year period! 🙂

This channel will aim to help you achieve your personal financial goals through the things I’ve learned (mostly through my own mistakes) and researched to improve my own financial health.

Let’s face it, school did not teach us much about managing our money properly and seeing that there are SO many financial traps that we are destined to step into if we are not careful, I want to make you aware of these pot holes, how you can avoid them and how you can get out of them if you are already trapped.

If you enjoy the content and find any value in my videos, consider subscribing and help me reach my goal for 2021 by reaching 10 000 subscribers on YouTube!

Lekker!

DISCLAIMER

I am not a financial advisor. The content on this YouTube channel are only for educational purposes and should not be taken for financial advice. You and only you are responsible for your financial decisions and must therefore conduct your own research and seek the advice of a licensed financial advisor if necessary.

Some of the links on this page are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Affiliate commissions help fund videos like this one….(read more)

LEARN MORE ABOUT: Retirement Annuities

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing