FAQ
The financial questions South Africans keep asking.
These questions come up repeatedly around investing, retirement, estate planning, life cover, and broader financial decisions. Each one can lead into a deeper article or a proper consultation.
Are all tax-free savings accounts the same in South Africa?
No. The tax treatment is the same, but the underlying product, fees, investment choice, and long-term growth potential can be very different.
What should I actually hold inside my TFSA?
That depends on time horizon, risk tolerance, and the role the TFSA plays in the broader plan. For many long-term investors, growth assets matter more than cash-like products.
What is the best retirement annuity for my situation?
There is no universal best RA. The right answer depends on fees, fund access, flexibility, tax position, and how the RA fits into the rest of the portfolio.
Should I use an RA, a TFSA, or both?
Often both can play a role. The real question is how to sequence them properly based on tax, liquidity, retirement needs, and broader wealth goals.
How much of my portfolio should be invested offshore?
That depends on income source, liabilities, time horizon, and currency exposure. Offshore allocation should be part of a deliberate portfolio strategy, not a reaction.
Are offshore wrappers worth it for South African investors?
Sometimes yes, sometimes no. The cost, structure, tax implications, estate implications, and flexibility all need to be weighed properly.
How much life cover do I really need?
The right amount depends on dependants, debt, income replacement needs, estate liquidity, and long-term planning obligations.
Which life insurers are actually reliable?
The strongest choice is not only about brand recognition. Product quality, underwriting, claims experience, and suitability all matter.
Should I get my will done through my bank, broker, or lawyer?
That depends on complexity, executor structure, and whether the will is part of a wider estate plan. The cheapest route is not always the best route.
How do I structure my estate so my family is protected?
A will alone is not enough. Beneficiary nominations, estate liquidity, business interests, offshore assets, and executor planning all matter.
What is the difference between a living annuity and a life annuity?
A living annuity keeps investment risk and drawdown decisions with the retiree, while a life annuity exchanges capital for a guaranteed income stream.
What is a safe drawdown rate in retirement?
There is no fixed safe number for everyone. Sustainability depends on portfolio size, returns, inflation, life expectancy, and withdrawal discipline.
How much home loan can I realistically afford?
Affordability is not just what a bank will approve. It should be tested against cash flow, interest-rate stress, lifestyle obligations, and long-term wealth goals.
What deposit do I need before applying for a bond?
That depends on lender appetite, income profile, credit quality, and the overall deal. A larger deposit can improve terms, but strategy matters.
Next Step
Some questions need more than a general answer.
If you want advice that is specific to your situation, the next step is to request a consultation with Fouché Meyers.