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
Opinion: Laying equal blame on parents in Spur spat is wrong says Eusebius

Opinion: Laying equal blame on parents in Spur spat is wrong says Eusebius

He believes it's a moral cop-out to say the only thing going on in the video is two adults behaving badly in front of the kids.

[LISTEN] Eldorado Park activist's eyewitness account of fatal mob attack

[LISTEN] Eldorado Park activist's eyewitness account of fatal mob attack

Community Activist Dereleen James says there has been a surge of drug related crimes in the area, leading to a series of deaths.

Is Uber dying? Stuff’s editor explains…

Is Uber dying? Stuff’s editor explains…

High ranking employees are resigning en masse as crisis upon crisis pummel lossmaking Uber.

Spur CEO: Man's pic will be up at restaurants and he is not welcome

Spur CEO: Man's pic will be up at restaurants and he is not welcome

Spur CEO says staff aren't equipped for this kind of customer confrontation and he will consider reviewing their training manual.

WATCH: Spur bans man after heated spat caught on camera

WATCH: Spur bans man after heated spat caught on camera

A man has been banned from Spur after threatening a woman during a heated argument which was captured on video and has gone viral.

Spur tightens its belt as 'two for the price of one' Monday burger special ends

Spur tightens its belt as 'two for the price of one' Monday burger special ends

The CEO of Spur says food inflation has played a big role in making this difficult decision.

3 JSE shares you should invest right now (by Momentum)

3 JSE shares you should invest right now (by Momentum)

Looking for a hot tip, or three? Here’s what Momentum Head of Investments and Savings Steven Schultz is buying...

He was a loving family man - Joe Mafela’s niece

He was a loving family man - Joe Mafela’s niece

Legendary actor, Joe Mafela popularly known as Sdumo passed away on Saturday following a car accident.

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…