Personal Finance 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.


This article first appeared on CapeTalk : How to best invest a lump sum


Recommended

by NEWSROOM AI
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
5 retirement saving tips for those who left it late

5 retirement saving tips for those who left it late

It’s better to start late than never! The Money Show’s Bruce Whitfield interviews Jeanette Marais.

How Llandudno residents are bringing down crime in their small coastal suburb

How Llandudno residents are bringing down crime in their small coastal suburb

Llandudno has almost no crime in the area and that's all because of an extra levy that residents pay for some extra peace of mind.

Enjoy life and save for the future by splitting income using the '50/15/5 rule'

Enjoy life and save for the future by splitting income using the '50/15/5 rule'

You only live once — personal finance guru Warren Ingram on divvying up your income if you're not the budgeting type.

[WATCH] Woman faints after hairdresser cuts 12-inch hair without telling her

[WATCH] Woman faints after hairdresser cuts 12-inch hair without telling her

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Tourist steps out of his car to film lions at Kruger National Park

[WATCH] Tourist steps out of his car to film lions at Kruger National Park

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] 'I am smart, I am blessed, I can do anything' video goes viral

[WATCH] 'I am smart, I am blessed, I can do anything' video goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Job hopeful caught cheating during his Skype interview

[WATCH] Job hopeful caught cheating during his Skype interview

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Dad dancing with daughter at school concert goes viral

[WATCH] Dad dancing with daughter at school concert goes viral

Khabazela shares tweets and Facebook posts that have gone viral.