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Tax Smart: Rethinking Provident Fund Withdrawals
Manage episode 418833458 series 2621606
In this episode Warren Ingram delves into the retirement fund reform, which introduces a two-pot system to lower the tax burden when cashing in provident funds upon resignation. It segregates funds into a compulsory portion, locked until retirement, and a savings pot accessible during emergencies. While the reform doesn't alter the investment strategy, it modifies fund accessibility.
Takeaways
- The retirement fund reform aims to address the issue of high taxes when cashing in a provident fund.
- The two-pot system will have a compulsory part that is locked away until retirement and a savings pot for emergencies.
- The reform does not change the investment strategy but focuses on when and how the money can be accessed.
- The implementation of the reform has been delayed, and it is uncertain if the investment strategy will differ for the two pots.
Have a question for Warren? Don't forget to voice note your questions through our WhatsApp chat on (+27)79 807 8162 and you could be featured in one of our episodes. Follow us on Twitter, LinkedIn and subscribe to our YouTube channel for more Financial Freedom content: @HonestMoneyPod
Chapters
1. Tax Smart: Rethinking Provident Fund Withdrawals (00:00:00)
2. Retirement Fund Reform Explanation (00:00:16)
3. Investment Options and Choices (00:07:15)
222 episodes
Manage episode 418833458 series 2621606
In this episode Warren Ingram delves into the retirement fund reform, which introduces a two-pot system to lower the tax burden when cashing in provident funds upon resignation. It segregates funds into a compulsory portion, locked until retirement, and a savings pot accessible during emergencies. While the reform doesn't alter the investment strategy, it modifies fund accessibility.
Takeaways
- The retirement fund reform aims to address the issue of high taxes when cashing in a provident fund.
- The two-pot system will have a compulsory part that is locked away until retirement and a savings pot for emergencies.
- The reform does not change the investment strategy but focuses on when and how the money can be accessed.
- The implementation of the reform has been delayed, and it is uncertain if the investment strategy will differ for the two pots.
Have a question for Warren? Don't forget to voice note your questions through our WhatsApp chat on (+27)79 807 8162 and you could be featured in one of our episodes. Follow us on Twitter, LinkedIn and subscribe to our YouTube channel for more Financial Freedom content: @HonestMoneyPod
Chapters
1. Tax Smart: Rethinking Provident Fund Withdrawals (00:00:00)
2. Retirement Fund Reform Explanation (00:00:16)
3. Investment Options and Choices (00:07:15)
222 episodes
All episodes
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