At Maysure Financial Services, we understand that building and managing your wealth is about more than just making the right choices—it’s about aligning those choices with your financial goals in the smartest way possible. The 91 Investments Tax-Free Investments (TFI) product is tailored to offer the most efficient path toward long-term financial success, providing both flexibility and control while shielding your returns from tax burdens.
The Benefits of 91 Investments Tax-Free Investments
1. Tax Efficiency
The standout feature of the 91 Investments TFI is its exceptional tax efficiency. Any growth from your investment, whether it’s through interest, dividends, or capital gains, is entirely tax-free. This allows you to keep 100% of your earnings and reinvest them for future growth. Over time, this tax advantage can significantly enhance the compounding effect, especially when compared to traditional taxed investment vehicles. If you max out your annual contributions over several years, the cumulative effect of this tax relief can result in substantial long-term savings and a much larger final investment value.
2. Flexible Contributions
With the 91 Investments TFI, you can contribute up to R36,000 per year, capped at a lifetime limit of R500,000. This flexible contribution model allows you to invest according to your current financial circumstances, whether you’re starting small or have more substantial amounts to invest. You can also contribute lump sums or smaller monthly amounts, which makes it accessible regardless of income level. Importantly, any unused portion of your R36,000 annual limit doesn’t roll over, so it’s wise to contribute as much as possible each year to make full use of the benefit.
3. Wide Range of Investment Options
The 91 Investments TFI offers access to a diverse range of investment portfolios managed by highly experienced professionals. These portfolios cover various asset classes, including equities, bonds, and money markets, giving you the flexibility to build a customised investment strategy that suits your financial goals and risk appetite. Whether you prefer a more conservative, income-focused portfolio or a growth-oriented, equity-heavy approach, the product has you covered. This breadth of choice ensures you can adapt your investment to different life stages or market conditions, maintaining balance and growth potential throughout your journey.
4. No Penalties for Withdrawals
Unlike many other investment products, where early withdrawals can result in penalties or fees, the 91 Investments TFI offers complete flexibility. You can access your money whenever needed without incurring any penalties. However, it’s essential to remember that any withdrawals you make reduce your lifetime R500,000 limit permanently. This makes the product an excellent emergency savings option or a tool for shorter-term goals, but it’s worth carefully considering withdrawals to ensure you maximise your future tax-free investment space.
5. Compounding Growth
The tax-free nature of the 91 Investments TFI ensures that the full power of compounding can be realised. Because your returns are not subject to taxation, you can reinvest all earnings—whether they come from dividends, interest, or capital growth—into your investment. Over time, these reinvested earnings can exponentially increase the value of your investment, helping you reach your financial goals sooner. Albert Einstein famously referred to compounding as the “eighth wonder of the world,” and a tax-free investment is one of the most effective ways to harness its power.
6. Estate Planning Benefits
Another often overlooked benefit of tax-free investments is their potential role in estate planning. Since the returns from your TFI are tax-free, the growth doesn’t add to your estate’s taxable value, which can reduce the estate duty liability for your heirs. This makes it a valuable tool for legacy planning, as it allows you to pass on more of your wealth without the erosion caused by taxes and estate duties. For those looking to leave a financial legacy for their children or loved ones, this aspect of the TFI can offer significant advantages.
7. Expert Management
At 91 Investments, your funds are managed by a team of seasoned professionals with deep expertise in both local and global markets. By investing through this product, you gain access to industry-leading fund management, helping to mitigate risks while maximising returns. The portfolios offered through the TFI are structured to provide a balance between stability and growth, ensuring that your investment remains resilient across different economic cycles. This level of expertise can make all the difference in achieving consistent, long-term growth.
Additional Considerations
Long-Term Savings
Beyond the direct tax benefits, tax-free investments are particularly suited for long-term savings goals like retirement or education funds. While immediate financial needs can also be addressed, the longer you leave your investment to grow, the greater the benefits, thanks to tax-free compounding.
Inflation Protection
Many investors overlook the impact of inflation on their savings. Over time, inflation can erode the purchasing power of your money, but the growth potential of tax-free investments—especially those with exposure to equities—can help combat this. Equity-based portfolios tend to outperform inflation over the long term, making them an effective tool for preserving and growing your wealth in real terms.
Regulation 28 Compliance
For those concerned about retirement savings, the TFI product allows for more flexibility than traditional retirement annuities, which are subject to Regulation 28 restrictions. These restrictions limit exposure to high-growth assets like equities. In contrast, tax-free investments are not subject to Regulation 28, offering greater flexibility in how you allocate your investments.
Conclusion
At Maysure Financial Services, our mission is to help you navigate the complexities of wealth management with confidence. The 91 Investments Tax-Free Investments product offers a simple yet powerful way to grow your wealth and achieve financial independence. Whether you’re looking to save for a specific goal or build a long-term financial cushion, our team is here to provide guidance tailored to your unique needs.