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Good Evening fellow investors, 

I have started my TFSA recently, and have been looking into the outvest fixed Endowment as an additional investment. Does anyone have experience with this investment, or any good 5 year investment options. 

 

Thank you. 

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The only thing I know about endowments is that 1) they're tax efficient and 2) some people get burnt by the fine print and end up making nothing.


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17 hours ago, Kyle Roman said:

Good Evening fellow investors, 

I have started my TFSA recently, and have been looking into the outvest fixed Endowment as an additional investment. Does anyone have experience with this investment, or any good 5 year investment options. 

 

Thank you. 

Consider that Outvest's Fixed Endowment invests in a 5-year Absa Fixed deposit. 

 

From a tax perspective,

- income from the Outvest Fixed Endowment will be in the form of interest

- R 23 800 interest per annum is exempt from income tax. (R34.5k if older than 65)

 

Endowments are taxed at a flat rate of 30%

Their offer thus is interesting if

(a) your marginal income tax rate is greater than 30%

& (b) you have used all of or a considerable amount of your annual interest exemption at SARS !!!

 

 

Note: Outvest quotes a simple rate of interest. This really is somewhat misleading. The FSCA should really enfore FSPs to quote nominal or effective rates only. 

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