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:

--

“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?”

--

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

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.

Read More
Earn a low income? Here’s how to invest for your children’s future…

Earn a low income? Here’s how to invest for your children’s future…

Education is, more often than not, key to a good life. But how do you provide when you earn peanuts?

Is supersaver Julia still investing 33% of her income (despite having a baby)?

Is supersaver Julia still investing 33% of her income (despite having a baby)?

She returns to The Money Show one year (and A LOT of water under the bridge!) later to report back.

How to invest an extra R1000 (or so) per month

How to invest an extra R1000 (or so) per month

Have some spare cash to save and invest, but not sure how? Galileo Capital Financial Advisor Warren Ingram presents your options…

How I manage to invest a third of my income (despite earning peanuts)

How I manage to invest a third of my income (despite earning peanuts)

I earn peanuts, yet I’m slowly (but surely!) on my way towards never having to work for money ever again in my life.

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

How to protect your wealth when the JSE is falling

How to protect your wealth when the JSE is falling

How to protect your wealth should the JSE start to weaken...

Popular articles
Pick n Pay's magnificent 7 errors with Super Animals cards

Pick n Pay's magnificent 7 errors with Super Animals cards

Pick n Pay has been alerted by customers to errors on the latest Super Animals cards.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

Budget 2017: DA hoped for spending cuts, not tax increases

Budget 2017: DA hoped for spending cuts, not tax increases

The DA believes that raising taxes is not the answer to South Africa's economic woes and propose more cost-cutting for government.

Meet self-made millionaire (net worth – R400m!) property mogul Sisa Ngebulana

Meet self-made millionaire (net worth – R400m!) property mogul Sisa Ngebulana

How did Ngebulana build his empire? The Money Show’s Bruce Whitfield interviewed him for his weekly “ShapeShifter” feature.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 reasons why the tourism industry is sceptical about the latest numbers

5 reasons why the tourism industry is sceptical about the latest numbers

The tourism industry is questioning the veracity of the surprisingly upbeat tourism figures and the timing of their release.