Saving your money in a cash product, means losing it over a period of time. .................WHY?
Look at it this way:
You save the money that you have earned (and have paid income tax on) in any cash savings product. Then consider yourself very lucky if such savings of yours are earning 9.5 % interest per annum.
The first decaying factor that you will experience is the reality of income tax on the interest portion of your saving.
Though the first R21 000 of interest that you earn will be exempt from tax in South Africa, all interest earned more than that will be taxed at your effective income tax rate. If your effective tax rate is for instance 25%, you will be losing 25% of the balance of your interest to income to tax.
Your 9.5% interest is suddenly reduced with 25% to something in the region of 7.5% after allowance was made for the initial exempt amount.
On the other hand,
we have the reality of inflation.
The Government’s target is to peg inflation at between 3 and 6 %. Some external as well as internal economical factors prevent them from reaching their goals. Inflation is constantly debated as to be between 6 and 9 %, say on average 7.5 %.
If you earn 7.5% on the one hand and you lose 7.5% on the other hand, where are you going with your savings? In our opinion you’re going nowhere slowly and you’re not even aware of it.
View the solution
FINANCIAL SUICIDE:
If you want to commit financial suicide, do yourself the favour to retire with your savings in cash.
WHY?
The moment you retire with cash savings as your financial supply, four will things happen.
ENOUGH OF THE DOOM AND GLOOM!
We have a solution to all of this
Be honest;
Do you know anybody that retired rich from savings in cash products and/or savings policies?
On the other hand;
Do you know any rich people that do not own property?
That is why we know that property (tangible assets) is the key to all of this.
Click here to find out ABOUT THE SOLUTION.
Look at it this way:
You save the money that you have earned (and have paid income tax on) in any cash savings product. Then consider yourself very lucky if such savings of yours are earning 9.5 % interest per annum.
The first decaying factor that you will experience is the reality of income tax on the interest portion of your saving.
Though the first R21 000 of interest that you earn will be exempt from tax in South Africa, all interest earned more than that will be taxed at your effective income tax rate. If your effective tax rate is for instance 25%, you will be losing 25% of the balance of your interest to income to tax.
Your 9.5% interest is suddenly reduced with 25% to something in the region of 7.5% after allowance was made for the initial exempt amount.
On the other hand,
we have the reality of inflation.
The Government’s target is to peg inflation at between 3 and 6 %. Some external as well as internal economical factors prevent them from reaching their goals. Inflation is constantly debated as to be between 6 and 9 %, say on average 7.5 %.
If you earn 7.5% on the one hand and you lose 7.5% on the other hand, where are you going with your savings? In our opinion you’re going nowhere slowly and you’re not even aware of it.
View the solution
FINANCIAL SUICIDE:
If you want to commit financial suicide, do yourself the favour to retire with your savings in cash.
WHY?
The moment you retire with cash savings as your financial supply, four will things happen.
- Your ability to contribute to the growth of your capital will either seize completely, or it will be limited.
- You will have to live from the proceeds of your savings.
- You will have to lower your standard of living.
- Over a period of time, inflation will force you to start to live from your capital.
ENOUGH OF THE DOOM AND GLOOM!
We have a solution to all of this
Be honest;
Do you know anybody that retired rich from savings in cash products and/or savings policies?
On the other hand;
Do you know any rich people that do not own property?
That is why we know that property (tangible assets) is the key to all of this.
Click here to find out ABOUT THE SOLUTION.
Ready to commit financial suicide?
Think about it!
Be proactive.
You can't reverse your situation at retirement!
Be proactive.
You can't reverse your situation at retirement!
Don't burn yourself to save for nothing!
Experience constant growth and beat inflation forever!
Own Your Own
Investment Property!
Investment Property!