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Money matters before moving


ArnoW

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Hi everyone, now that Christmas is behind us I have to start focusing on so many things for our July move. A few questions comes to mind:

1. I have no clue what to do with my pension when I resign. Do I invest in Australia, and if so, where. I suppose it will be better than leaving the money in SA... But then how to deal with tax issues etc. I have heard that people recommend Cashkows.com....?

2. What to do with my current savings policy which I pay money into each month. I suppose I will have to close that because how do you keep on paying if you do not leave money behind in a SA bank account? Or how easy ia it to pay money into my account in SA from Australia?

3. Do I close my credit card? Or keep it. Them again, the same issue as in 1 above - how do I pay it...

There are so many things I must think of at the same time, it makes the mind reel!

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Hi ArnoW

We are also immigrating and only looking at visiting now and again.

My recommendation is to contact Steve Porter of Cashkows as he will be able to assist you. His details 072 810 0315 or 028 312 2764 or steve@cahkows.com.

We are planning on "cashing in" all policies and then having the funds transfer to Oz. The credit cards are slowly but surely being settled (after we burned them to a crisp to pay for the visa) as we intend to leave with no debt in SA.

Keep us posted on what you decide to do and good luck.

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Thank you Bams. Will keep you posted. Good luck with your preparations. When are you leaving? We are leaving July but it seems so far! I do howeve realise thst it is not long at all. Six months goes by so fast and there is still lots to do... When i get back from holiday next week it will be first gear all the way.

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Hi ArnoW

I'll be happy to provide advice and guidance as "Bams" mentions (thankyou Bams!).

Feel free to give me a call on 072 810 0315 or 028 312 2764 for a free no obligation chat.

Regards,

Steve Porter

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Hi Steven,

When is the best time to get a hold of you? My hubby emailed you all of his pension details about 3 months ago but we haven't heard anything back.

Many thanks

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Hi Shannon

Apologies if there has been some misunderstanding in terms of communication with your husband. You can contact me at any time on 072 810 0315 or during office hours on 028 312 2764. If you prefer, please e-mail your contact details to steve@cashkows.com and I will call you.

Regards,

Steve

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Shannonc4 and ArnoW

I am in the office with Steve, any time 7am to 6pm SA time or send him an email and he will call you info@cashkows.com.

On the tax issues re continued contributions / continued memberships of retirement and saving funds: The longer you keep them, the larger the additional tax exposure in Australia. Most tax effective would be to resign and transfer to Super within 6 months, as you then only suffer the SA taxes. After 6 months the gross proceeds less contributions since you arrived in Australia (or gained PR) will be taxed by ATO yet the SA taxes will go to reduce the ATO exposure. It all sounds fine but in effect ATO taxes you on SA contributions and the growth thereon (subsequent to tax departure from SA) with the result that dealys cause increased tax.

From the pics both of you to young to worry about this option but I add: Should you be 55 and consider to take the monthly pension and not resignation lump sum, the full monthly proceed is taxed in Australia and it is normally tax exempt in SA. ATO then allows no deduction ie monthly pension is tax inefficient and add the exchange rate risk and it is a no brainer, even at 50+ the better is option is a lump sum on resignation.

Greetings

Hugo

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Thanks so much, not a problem at all. I'll get my husband to contact you again sometime this week.

Edited by shannonc4
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  1. If you are not planning on buying a car cash when you arrive, better keep the credit card close by. No one would accept cash from us and a new bank card takes time as well. Buying the car with installments won't work either as you will need payslips.

We cashed in our pension and all other policies that had a value attached with the help of Cashkows.

Transferring money to South Africa is easy. Takes 2-3 days to show up in your blocked bank account (if you cashout with CashKows). Cost $20 on this side to send but a few hundred in South Africa to receive the money in your bank.

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  • 3 weeks later...

Just check the tax implications very carefully before you move your Pension Fund money so you don't end up losing a massive chunk to SARS. I've been advised not to move my Pension Fund at this stage so get a few opinions.

Also ensure that you don't have any money due to you by SARS before you close accounts. And if you open a new account, you need to go into SARS offices to advise them.

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Hi Pam, thanks for the repsonse. I am busy opening an account with Investec Australia and was told if transferring less than a million do not need a tax clearance from SARS and a clearance from SARB. On the pension fund and investments still need to get more opinions. I would just like to make a SWIFT payment into my Investec Australia account once it has been opened.

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  • 2 months later...

You're going to pay tax regardless if you transfer pension now or later. The good news is that the income from your super is tax free after retirement opposed to taxable in South Africa. We've transferred our money and increased our investment into super, cashkows helped with tax in South Africa, tax clearance, tax return.

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