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Financial Planning
Investment
August 20, 2019

OUTvest and OUTsurance Life partner to build a tax efficient endowment direct to the public

<strong>By:</strong> <b>OUTsurance Life and OUTvest</b>

<a href="https://www.outvest.co.za/" data-saferedirecturl="https://www.google.com/url?q=https://www.outvest.co.za/&amp;source=gmail&amp;ust=1566381219846000&amp;usg=AFQjCNFYhmVOvEHkzOQBRoPUTw-37TIvYw">OUTvest,</a> the pioneering digital investment service that sits within <a href="https://www.outsurance.co.za/" data-saferedirecturl="https://www.google.com/url?q=https://www.outsurance.co.za/&amp;source=gmail&amp;ust=1566381219846000&amp;usg=AFQjCNHEwr7fa9tBPuR0H3dcfQJHj3Opfg">OUTsurance Holdings,</a> is enabling South Africans to go beyond goals-based saving and to invest in a five-year endowment through a fixed deposit at a fixed rate, underwritten by <a href="https://www.outsurance.co.za/life-insurance/" data-saferedirecturl="https://www.google.com/url?q=https://www.outsurance.co.za/life-insurance/&amp;source=gmail&amp;ust=1566381219846000&amp;usg=AFQjCNGBzhT5HZfCdGUM1IgkupgUUAYWYA">OUTsurance Life</a>.

You can sign up online with the help of a digital financial advisor developed by OUTvest. After answering a few questions, you will receive a personalised recommendation along with all the information you need to make an informed decision, with no obligation to invest. You will also see your investment outcome, after all fees and taxes.

As the interest rate is quoted after fees and taxes, OUTvest has developed an online calculator to estimate an individualised pre-tax rate. You can then compare the after-tax returns from the fixed OUTcome endowment with other interest-bearing investments, such as a fixed deposit.

“From there, see your fixed OUTcome, sign-up and get that rate – it’s as simple as that,” says Grant Locke, Managing Director of OUTvest. OUTvest also provides access to advisors to answer questions and provide guidance so you make the right choice for your circumstances.

Notably, fixed OUTcome uses the beneficial tax position of OUTsurance Life to give clients a competitive after-tax return. As a result, the Fixed OUTcome endowment is well-suited to individuals who have used their annual interest exemption from SARS but would like to continue to invest at a fixed rate in a tax-efficient way. As a result, capacity is limited.

An additional benefit of an endowment is that in the event of the death of the life assured, the proceeds will be paid directly to beneficiaries. The proceeds will not attract executor’s fees, which can be up to 4% (including VAT).

Danie Matthee, CEO of OUTsurance Life notes, “Being at the forefront of innovation is a key focus for the OUTsurance group, and Fixed OUTcome will join a number of other innovations across our group that will help us continue to grow our overall footprint in South Africa. We believe that our online technology can be harnessed across multiple distribution channels, providing consumers with a great experience, value and choice.”

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