The decisions you make today have the potential to shape tomorrow’s possibilities
Whether you’re planning for retirement, growing long-term wealth or creating a financial legacy, choosing the right investment strategy is an important first step.
At Ewing Trust Company, we believe wealth management is more than investing – it’s about helping you make informed financial decisions that support your goals today and create possibilities for tomorrow.
In our Wealth Management Series, we’ll explore some of the most effective investment strategies and solutions available and how they can help you achieve your financial goals.
Building Wealth for Tomorrow
Retirement Annuity (RA)
- Retirement Planning – Whether you’re employed or self-employed, an RA can help you build long-term retirement savings either as a standalone investment or as part of a holistic retirement plan.
- Flexible Contributions – Contributions can generally be increased, reduced or paused to suit your financial circumstances. Modern Retirement Annuities offer greater flexibility than ever before.
- Tax Efficiency – Contributions to retirement funds may qualify for a tax deduction (subject to legislative limits). An independent RA can also complement your employer retirement fund and provide additional tax efficiencies.
- Investment Diversification – Access a wide range of investment funds, risk-profiled portfolios and discretionary share portfolio solutions tailored to your objectives and risk appetite.
- Tax-Free Growth – No tax is payable on interest, dividends or capital gains while invested within the retirement fund.
Tax-Free Savings Account (TFSA)
A Tax-Free Savings Account is one of South Africa’s most powerful long-term wealth-building tools. It offers investors the unique benefit of tax-free growth on interest, dividends and capital gains, allowing more of their investment returns to remain invested over time.
While annual and lifetime contribution limits apply, maximising these allowances can make a meaningful difference to long-term wealth creation.
Why consider a Tax-Free Savings Account?
- Tax-Free Growth – Interest, dividends, capital gains and withdrawals are all tax-free, making this one of the few truly tax-efficient investment solutions available in South Africa.
- Unlocking its Potential – A Tax-Free Savings Account should be viewed as a long-term investment strategy rather than simply a savings account. Many investors hold their TFSA entirely in cash, limiting its growth potential. A diversified investment approach can help maximise the benefits of this valuable tax allowance over time.
- Long-Term Wealth Creation – A TFSA is ideally suited to investors with a long-term investment horizon and can complement both retirement and legacy planning strategies.
- Flexibility – Unlike retirement savings vehicles, a TFSA offers greater accessibility should your circumstances change. However, withdrawals cannot be replaced once annual or lifetime contribution limits have been utilised.
Better Together
Retirement Annuities and Tax-Free Savings Accounts are not competing investments – they solve different financial planning needs and often work best when used together.
- An RA provides tax-efficient retirement savings.
- A TFSA provides long-term tax-free growth and greater flexibility.
Together, they can form the foundation of a well-structured financial plan.
Building Wealth with Purpose
The most effective investment strategy is one that aligns with your goals, time horizon and personal circumstances. Combining different investment solutions can provide both tax efficiencies and long-term growth opportunities while helping you build financial security at every stage of your financial journey.
Illustrative Example* (excluding other deductions)
| Gross Annual Income | R500,000 |
| Independent RA Contribution | R60,000 |
| Estimated Tax Saving | R34,565 |
| Potential Use of Tax Saving | Annual TFSA Contribution |
By using the tax saving generated from an RA contribution, an investor may be able to substantially fund their annual Tax-Free Savings Account contribution, allowing two highly tax-efficient investment strategies to work together.
*This example is for illustrative purposes only. Actual tax savings will depend on your personal circumstances, taxable income and other allowable deductions.
Begin the Conversation
Investing should be more than selecting an investment product – it should form part of a well-considered financial strategy that reflects your goals, time horizon and personal circumstances.
Today’s decisions have the potential to become tomorrow’s possibilities
Speak to your Ewing Trust Company financial adviser about building an investment strategy that’s designed for your future.
Coming Next in the Ewing Trust Company Wealth Management Series
Income & Capital Growth Portfolio Solutions
Discover how tailored local and global investment portfolios can be designed to provide income, support long-term capital growth or achieve a balance of both, while helping to create and preserve wealth for future generations.