Page 31 - Waterfall City Issue 11 November 2024

BUILDING

GENERATIONAL WEALTH

with the gift of financial wisdom

By Thomas Berry, Head of Sales at PSG Wealth

W hile we reflect on our year, with a lifetime limit of R500,000.
financial decisions made
The unused portion of the annual
throughout the year,
allowance, currently R36,000 will
it is also important to
consider the future, especially how we not roll over to the subsequent
year. Any growth in the investment
can build legacies that will empower is tax-exempt, meaning that in the
future generations. Thomas Berry, long term, the accumulated value of
Head of Sales at PSG Wealth says, “One a TFSA typically outstrips that of a
of the most enduring gifts we can all taxed investment product (assuming
pass on is financial wisdom to allow it is invested in similar underlying
future generations to unlock financial funds) – often by a wide margin. This is
freedom. Instilling financial literacy in particularly true of growth on tax-free
the next generation empowers them to investments over the longer term, i.e.
build a secure and prosperous future.” for seven years or more.
Thomas Berry, Head of Sales at PSG Wealth
Instilling a culture of saving Many investors choose to use a TFSA
Instilling a culture of saving begins action. Part of planning for a successful as a way of saving for their children’s
at home. Building wealth involves financial future involves tax-efficient tertiary education – a longer time
combining strategic financial planning, choices and for many investors, that horizon, provides a reasonable
personal discipline and maintaining a starts with opening a tax-free savings amount of time to grow returns for this
long-term perspective. Unlike chasing account (TFSA). purpose, tax-free.
short-term gains or ‘quick’ returns,
building wealth is a process that takes Currently, investors can make It is also possible for parents to take out
many years and requires consistent contributions up to R36,000 per tax TFSAs in their children’s names. Bear in

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