- Oct 19, 2009
huh? How does one settle debts with pre-tax income?
Dude read literally the next sentence I posted.
Any investment you make (with the exception of an RA contribution) is used with post-tax income, however, these investments also have their own form of tax (100% for speculative and 66.6% for capital gains).
The settlement of debt doesn't have these "additional taxes".
The assets which are tied to these debts - in this case your house - has a primary residence exclusion (last I checked, which was a while ago, it was R3.5m) for capital gains.
Sorry this is getting complicated, but the point is, settle your bond first, or take the risks that come with an RA, which are evident from the main point of this thread, which I've now deviated drastically from