The best way to show yourself some love this February

There is truth in the saying that you have to love yourself first before you can love someone else. You work like crazy and you deserve to take the time to invest in yourself. With February being the month of love (and the end of tax season), it’s the best time to show yourself (and your hard-earned money) some proper appreciation. You can do this by taking advantage of tax-free investments. If the finance speak is turning you off, just read on, because you should be excited about this (love) interest.

Take the leap into tax-free investing

The tax year ends on 29 February 2020. Yes, February has an extra day this year as it’s a leap year. So there is still time to ensure that you take advantage of the valuable perk offered to us by our National Treasury every year to encourage us to save – and that is that we are able to invest tax-free for up to R33 000 every year. If you didn’t know that yet, you’re welcome!

When you invest tax-free, you pay no income, dividend or capital gains tax on your tax-free investment. You could choose to just save tax-free through a bank if you like, but then your money can only ever earn a predictable level of interest. And no-one likes predictable in a relationship. No, far better is a relationship which could potentially exceed your expectations, growing more interesting and valuable over the years.

So to give yourself the best chance to grow the value of your money over time (and beat the ultimate passion-killer, inflation), it makes more sense to invest in a tax-free unit trust fund such as a Coronation Tax-Free Investment. This way your money will not only be managed by experts, but it will be exposed to the growth potential of assets such as shares, bonds and listed property. Is this sounding like more of a prospect? 

It’s possibly the best long-term commitment you’ll ever make

Investing over multiple decades, and leaving your money invested, enables it to comfortably withstand the effects of any market volatility that is typical of the financial markets. Over the long term, the bumps smooth out (unlike in some relationships) and the overall trend is for your money to grow more over time than it would if it were just earning interest in a bank. The key is to really think long term – for better or worse.

Another benefit of tax-free investing is that you can withdraw your cash whenever you like! But you can’t put it back - once you have invested your maximum amount that’s it, whether you leave it invested or have made withdrawals.

How to hook up with a tax-free investment fund

So, if that’s piqued your interest, you can start investing via a monthly debit order from as little as R250 with Coronation or you can make lump-sum investments from R5 000 to R33 000. If you have an existing tax-free savings account with a bank, you can switch it to a Coronation Tax-Free Investment at no cost. Yes, breaking up with your bank won’t cost a cent.   

Why Coronation is a good match for you

Coronation offers access to a range of tax-free domestic and rand-denominated international unit trust funds.

So, put yourself first this month of love and invest tax-free. After all, the goal of investing at its heart is about appreciating your wealth over time. And while we can’t force others to appreciate ourselves fully, we can certainly appreciate ourselves more!   

To match up with a tax-free investment fund that is suitable to your needs, you don’t need to swipe right. Just click here, speak to your financial adviser (if you have one) or email clientservices@coronation.com.

Coronation Fund Managers is an authorised financial services provider. Ts & Cs apply