A tax free savings account (TFSA) is the perfect investment vehicle for South Africans who are serious about money. Every year, you can invest up to R33 000 absolutely tax free, up to a lifetime limit of R500 000.

In the video below, we explain exactly what TFSAs are, how they work and how you can make the most of them.

Deciding which exchange traded funds (ETFs) to buy can be confusing, but it doesn’t have to be. If you can answer one simple question, you can make the right decision about where your money should go.

Answer this question: When do you need the money you’re investing?

While we don’t know how we would feel if we lost 30% of our money and to what degree we can live with volatility, we almost always know when we’ll need our investment.

If you only need the money in ten years or more, you can comfortably invest in a high risk portfolio.

A medium risk portfolio is best for you if you’ll need to sell your shares within the next ten years.

If you’re currently retired and you need access to the money, choose a low risk portfolio.

Each year, the first R33 000 you invest should go into a TFSA account. Anything over R33 000 can go into your normal ETF portfolio.

While the money you invest is available at any time, you need to have a long-term investment horizon to have your portfolio deliver the performance you hope for.

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