How will the two pot system work in South Africa? | investment management courses in South Africa

[@liferesetwithboni]

Hi guys thanks for stopping by! Please like and share the video if you found value in it of course 😊 And here is your timestamp: 00:00 How will the two pot system work? 18:00 Who qualifies for two pot system: Answering your questions 26::48 What is the difference between investment management vs Investment banking? 32:51 Analyzing a two-pot system document from a villager

[@luckysebolai6442]

Boni, thank you for making this video for us. Personally, what I am concluding is that it is not worth it for as long as the tax charged is 18% to 45% on a capped amount of R30 000. This limits one's own personal interests and ambitions to improve their financial health. It has an aftertaste of a loan with a cruel loan shark. In the long term, our people will suffer from the consequences of this system. It is not a good initiative for especially poor people because they will be the most vulnerable to the suggestion, which really kills their potential of ever becoming wealthy in their retirement.

[@liferesetwithboni]

Absolutely!

[@khumbupromo1848]

Its a scam to get Tax money. It does not worth ir but be cause we need money we will take it

[@luckysebolai6442]

@khumbupromo1848 they're counting on that! Sometimes, we need to endure the night for joy cometh in the morning.

[@andilesibanda5244]

kuncono ukuzidlela imali yakho kunokuyishiyela izingane as ifa ziyidakwe ekubeni uyijulukele kunobuhle nobubi.

[@gospelinfluence]

Sis Yvonne, your explanation of these concepts is very helpful-thank you for that. I found your video on the two-pot system to be the most informative compared to others. However, I think some practical implications for many taxpayers aren't fully addressed. For example, this system might discourage employees from leaving public service out of fear they won't access their funds until retirement. There’s no guarantee that one will reach retirement age, so it feels like we've essentially given the government full control over our funds and future financial plans.

[@ZaneleMakhongwana]

There R Satanist devels they don't want to see people happy because people they didn't die with covid now they think anather way of killing people will not die this people they except Jesus one day n make people leave good life

[@tholangmoeketsi6093]

Thank you so much Yvonne for gracing us with so much information,I could listen to you all day,glad you were able to answer my question❤

[@liferesetwithboni]

You are so welcome

[@Wallstreetartistry-POD]

Yvonne Freely and Boni Xaba, Thank you for the inspirational interview ladies👏, God bless you.

[@YvonneFreely]

It was such a pleasure! Thanks Boni and your village 🤗🧡

[@MashandGravy]

I am here to understand and the government is gonna help individuals to spend savvy.

[@gospelinfluence]

Thank you for sharing this video. It's a clear example of neoliberalism. Our government highlights the benefits but overlooks the drawbacks of this two-tiered system. Honestly, in conversation, I believe this system doesn't prioritize taxpayers. As you pointed out, sisBoni, there are more disadvantages than advantages. uSis Yvonne tends to focus on minor benefits and doesn't address the typical struggles faced by South Africans.

[@gospelinfluence]

Sis Bonni, I just want to say thank you for the work you do really appreciate it sisi...

[@doctorradebe1254]

I like her to come back and I also like her smile😊

[@liferesetwithboni]

😎

[@YvonneFreely]

Look forward to it!

[@suzygirl1843]

​@@liferesetwithboniStockvel needs to be done by women

[@benMohlamonyane]

The video was very informative. Thank you for setting it up🙏🏽

[@liferesetwithboni]

Glad it was helpful!

[@edwardsmall8865]

I am sure the government first presented this brilliant idea to the financial institutions. So I came up with the tax amount.

[@mkhwanazisimon9949]

Thanks a lot Boni for inviting Yvonne to enlighten us about this up coming pot system. overall take out of this conservation no need to rush to cash out on this savings pot only if it emergency . Benefit of not cashing out early is the accumulation of savings pot and ability to cash out more that the cap R30 000 on the first Lastly the ability to cash out of more than one savings if one have personal retirement savings.

[@liferesetwithboni]

You are welcome 😊 🙏 and I see you understand Yvonne s points very well.

[@alinamodisenyane1050]

Thank you Bonnie fr inviting Yvonne she explained it better now I understand that the R30thou is going to grow and I can take it at later stage when it's more.❤❤❤

[@liferesetwithboni]

You are so welcome

[@tholangmoeketsi6093]

Calculated move from goverment,looking at average working class with this high inflation its really hard to keep up plus hefty taxes..The real winner here its goverment...

[@liferesetwithboni]

You think so? 😃

[@shaheedcassim2557]

Yes, the winners are the government and financial institutions. They now have you as a customer that cannot leave the system and even when you retire they get to keep your money and sell you an insurance product in return for it and have you ever noticed just how no one is advertising what they offer as an annuity??? It's scary to think you will have to take 2/3 of your retirement money and walk into an office and hope you going to get a decent deal from an insurance company 😂

[@JohnKumalinga]

The cap should have been a percentage rather than an amount. If my pension fund is R300k, R30k may be something but if my pension fund is R10m then R30k is a non starter.

[@thulilekubheka5923]

My faves, thank you Boni and Yvonne 🙏❤️👌🤍

[@liferesetwithboni]

Siyabonga

[@thulilekubheka5923]

Yes please, she must come back 😁😘

[@liferesetwithboni]

Noted

[@Kele.Masisi]

It's actually R30 000 - 40% - a certain amount of the portal admin fee =+-R18 000. Again a deduction of 04 months pension amount. Good luck cashing out the amount.

[@TRL_virus]

Trying to use retirement funds to clear debt is not addressing the issue. You likely to be in debt again if you don’t get help. Shes right… debt is not an emergency

[@liferesetwithboni]

I get you

[@itumelengmakua4762]

lol yes debt is not an emergency but for some of us debt could be “Mashonisa”😅

[@shaheedcassim2557]

The issue with this statement is terminologies. You should rather take out your money and pay the tax to pay off a credit card debt that's sitting at 27% than leaving your money In a retirement fund earning you probably 8% per year and owning the companies like banks who are charging you that 27% on your credit card. The idea of not paying off your debt only allows the financial institutions to continue to charge you more because your investment amounts are higher and charge you more on interest payments. It's a lose lose situation, debt is all about the percentages not the wording.

[@itumeleng_seema]

I honestly love your channel I wish you content was available when I was in high school 😂

[@liferesetwithboni]

Wow, thank you!

[@shaheedcassim2557]

The reason for the seeding cap on the seeding capital has nothing to do with the interest of members "directly". The government wants to cap at R30000 for the sake of liquidity and sustainability. If they allow too much it would create a mass sell off of south African shares causing disinvestment in the country contributing to overall higher unemployment, less tax collected and higher taxes for those who are still economically active. Yes I don't agree with the balancing act they trying to pull of and I would like to see year on year a 10% seeding until the "third pot" is completely gone. But, understand that if you are allowed to withdraw more than the R30000-00 the economy will take a strain and you can expect even tighter restrictions on the regulations 28 to prop up the south African economy causing you to suffer years and years of missing or negative growth.

[@itumelengmakua4762]

Hi Boni .. thanks so much for this informative session . My question is where is the savings pot money being invested or saved if it’s gonna be accessible immediately?

[@YvonneFreely]

Great question! All the 3 pots are housed in one fund account that makes the investments, then the returns are distributed proportionally (after fees) across the 3 pots. Unfortunately, the savings pot will not be invested in a short term investment even though it’s technically more suited to a short or medium term investment strategy vs the retirement pot which will be suited to a long term investment strategy - maybe in future this will change. I like how you’re thinking about this! Hope this helps.

[@itumelengmakua4762]

@@YvonneFreelyyes really helpful coz my thinking was that the savings pot will be saved in something like “money market” instead of equities? Thank you so much for clearing that 😊

[@liferesetwithboni]

Awesome!

[@thabanisosiba3674]

Government should relook the number of days and month per unnum. And maybe reduce the year with at least 3 month, a year is long. 😢 just thinking out of the box. Meaning in the next 18 years i could be 60 year

[@liferesetwithboni]

👍

[@godsfavouritedaughter3476]

😂

[@ThoughtMason]

I think the 30k cap is to prevent you from stealing from your future self. From what I’m understanding you would rather plan to use from the 2 pots to do things like paying off bills.

[@liferesetwithboni]

🤔

[@GuitarLover-gy9qw]

sounds good but the exorbitant tax? The lady said you could get as low as R16k from a R30k withdraw That doesn't sounds like a government who cares about your future-No Why not find a way to tax us low-if it's about helping us?

[@ckngivdtb37910]

Thank you Sis Boni

[@liferesetwithboni]

👍🙏

[@cecildamons9523]

It just shows how the government is disconnected with its people. The examples they use to access these funds not for the typical South African. We need money to pay of our debts now!!!

[@ckngivdtb37910]

What are the acceptable emergencies to withdraw from the pension fund?

[@liferesetwithboni]

That's personal. We can't say 😁

[@nonkululekomoorosi8127]

So that means when we get to 60 yrs of age we will not get government pension but we will get money from our savings basically the government is denying us access to get government pension

[@liferesetwithboni]

I don't think so!

[@LM-he7eb]

We shouldn't want government pension to start with

[@YvonneFreely]

You will get access to your pension, this new system does not affect that.

[@LM-he7eb]

@@YvonneFreely How strict is UCT with BCom Portfolio (Now "Financial Market") entrance?

[@shaheedcassim2557]

You probably will get access to it if you can prove that the money in your retirement annuity has run out or it's insufficient to live of. Remember even in your retirement annuity if you don't go with the guaranteed term life plan there's a minimum number of years or a max percentage you can actually access per year.

[@josephphitla1254]

Is not the emergency, but why do you cap it,

[@user-nm4gz1cd6v]

hie Boni , can you please do a video on Nuclear engineerig , job opportunities and salary income

[@liferesetwithboni]

I haven't received any information (salary) on it , so I haven't interacted with anyone in that field.

[@josephphitla1254]

We need a national imbizo abt this, I don't like wht is the government doing it

[@evelynmatsapola9475]

The big question here is how much does an average South African earn? The R2000 or R3000 is someone's monthly salary. There's a big income inequality in SA, and most people earn a very low salary, or nothing at all.

[@liferesetwithboni]

It depends on the industry. I really can't say, but there must be data on the interview.

[@shaheedcassim2557]

Your point is very valid in the sense that people who earn below the tax threshold essentially pay zero tax and do not get the benefit of a tax deduction. Although the transactions within your retirement fund are tax free if you withdraw from your savings pot might end up pushing yourself into a tax bracket and this will hurt you even more because you didn't even get a deduction to begin with.

[@ericluyandangwane8013]

Thank you

[@liferesetwithboni]

You're welcome

[@doctorradebe1254]

Yhooo bathong 18-45% tax

[@tholangmoeketsi6093]

Then they say its for us,sad reality😢

[@liferesetwithboni]

It depends on your tax bracket

[@liferesetwithboni]

It depends on your tax bracket

[@glenlungi6161]

Can the vested pot be zero? I don't think so

[@sbongiseninkambule4159]

How long will the withdrawal take and Wil it be tax to my payslip or direct to my bank

[@nonkululekomoorosi8127]

At first it was said we will get our money except for the one after 1st September so what happened now , why do they take everything and give us R30.000

[@liferesetwithboni]

Yvonne will answer .

[@YvonneFreely]

This is to help us save more for retirement by limiting how much you can withdraw. If you have a pension or provident fund you can still withdraw all your vested pot savings if you lose your job plus your savings pot savings (once per tax year)!

[@sibusisonkosi3469]

Mina I've retired in 2013 and I've stopped contributing towards my retirement annuity policy so what's going to happen under this new system?

[@liferesetwithboni]

I don't think you'll be affected.

[@sibusisonkosi3469]

@@liferesetwithboni but will I be able to withdraw some cash😂

[@nonkululekomoorosi8127]

So if you resign will I be able to get my pension fund or us still gonna be pots

[@liferesetwithboni]

I don't think it will work like before but Yvonne will answer you.

[@YvonneFreely]

If you have a pension or provident fund and you lose your job for any reason you will have access to your old vested pot funds plus your savings pot funds but not your retirement pot funds.

[@malebomoloto4150]

So what happens to the retirement money?

[@shaheedcassim2557]

​@@malebomoloto4150you can access it after the age of 55 provided you are retired and not still working. Or, if you don't live that long the fund will pay out your benefit to your beneficiaries.

[@doctorradebe1254]

SYABONGA NONKOS WAMA PAYSLIP MASHWABADE

[@liferesetwithboni]

You are welcome 😊

[@siphokazisikosana9915]

So a person who is 2 years from retirement wont get to have their WHOLE cash but will only get like 100 000 at best from pot 2. And will be trapped in a monthly paying annuity? How is that even fair after working for over 30 years?💔💔 This policy is NOT for the people, its the companies tryna avoid paying people their deserved cash. People must have their money and spend it however they want.

[@liferesetwithboni]

I'll let Yvonne share her thoughts on this one 😊

[@shaheedcassim2557]

The issue with this statement is it advises us the time until retirement and doesn't mention what type of fund the person is in and for how long they have been in it. If they have been in a retirement annuity then your statement is alot closer to being correct if the person is in a provident fund or a defined contribution pension fund then they need to check with their fund because the old rules apply to them and they don't even need to opt in to the two pot systems.

[@thembinkosimpendulo7713]

Hi i am late!, i wanted to ask that is it possible to withdraw later this year, lets say maybe December?

[@liferesetwithboni]

Yvonne will answer

[@shaheedcassim2557]

You can provided your fund has had their rule changes accepted and your fund administrator is up and running. However I would check if it possible in December especially with everyone going away for the holidays.

[@wisaninkabiti9920]

what is the tax bracket

[@shaheedcassim2557]

@@wisaninkabiti9920 your marginal tax bracket for the year

[@mphomakuwa6900]

I'll forever salute you for bringing Mr khariba into my life❤

[@liferesetwithboni]

👌

[@godsfavouritedaughter3476]

Next time the president will tell us what time to sleep and wake up. He'll be like " we also need two hours of your night time" You have too many hours 😂😂

[@liferesetwithboni]

That's ridiculous 😁

[@borismkhwanazi583]

This government of coward are scared of address the elephant in the room the private sector don't pay they employees😮😮

[@nonkululekomoorosi8127]

At first it was said we will get our money except for the one after 1st September so what happened now , why do they take everything and give us R30.000

[@liferesetwithboni]

I get her!