The Personal Finance series with Warren Ingram, Evergreen Content

How to best invest a lump sum

The Money Show’s Bruce Whitfield received the following question from a listener:

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“Over the past few years my wife and I have accumulated a seven digit sum of cash which is currently sitting in a seven-day call account with a bank.

“The problem I have with this is that the interest earned on the sum of money is greater than the allowable interest exemption offered by Sars on a yearly basis.

“We’re, therefore, getting taxed at 41% of the additional interest earned over the Sars exemption.

“The problem we face is that there are so many different investment vehicles offered by so many different companies.

“It is very daunting for us.

“Please, can you ask Warren Ingram to explain the possible investment vehicles which would yield the best, tax efficient return at the lowest cost?”

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For Ingram’s answer, listen to the audio below (and/or scroll down for quotes from it).

He should split the money between himself and his wife to pay less tax.

Warren Ingram, Galileo Capital Financial Advisor

He should invest at least 30% or 40% in growth assets. That’s property, listed property and shares.

Warren Ingram, Galileo Capital Financial Advisor

I suggest a moderate or conservative or stable fund.

Warren Ingram, Galileo Capital Financial Advisor

Shares are by far the most tax efficient investment.

Warren Ingram, Galileo Capital Financial Advisor

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Article brought to us by Old Mutual.

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