Only one month left until you can save on taxes in 2024 – 11/25/2023 – From Grão to Grão

When it comes to investments, we usually look for options that not only increase our wealth, but also offer tax advantages and protection. Private pension plans emerge as a promising alternative, especially at the end of the year, when tax optimization becomes a concern for many investors. However, many still disregard it either because they do not understand the size of the benefits or because they carry a negative image of the past.

This private pension product, once viewed with skepticism due to high fees and low returns, has evolved significantly and today is a smart choice that can perfectly align with your financial needs.

Imagine reducing your tax burden significantly. With the PGBL, it is possible to deduct contributions from your Income Tax up to a limit of 12% of your gross annual taxable income. If you make the declaration using the complete model, this can be a considerable saving. Have you ever thought about how this could benefit your financial planning?

I will show it in a simple calculation. Consider that your annual income is R$250 thousand. If you apply the 12% limit, that is, R$30,000, you immediately stop paying the tax of 27.5% of that amount, that is, R$8,250.00.

After 10 years, if you wish to redeem, you will have at least two benefits: the IR rate will be only 10% under the regressive regime and you will still earn a return on the IR that you stopped paying immediately.

Considering these two benefits, and assuming a return of 10% per year, after 10 years, you will have a total gain of R$18,400 on top of just the R$8,250 in tax you would pay now. What do you prefer? Pay R$8.25 thousand to the government now or earn R$18.4, in addition to not paying income tax immediately?

But the advantages don’t stop here.

Unlike many investment funds, pension plans stand out for the absence of come-quotas, that advance taxation regime that is levied every six months. Taxation only occurs upon redemption, allowing your investment to grow continuously. Wouldn’t it be great to see your investment growing without these interruptions?

Now, think about the agility and economy in the succession process. PGBL resources do not enter into inventory in the event of death, facilitating transfer to beneficiaries. This means less bureaucracy and reduced costs, as in most States there is no ICMS on them. Wouldn’t this speed and efficiency be ideal for your family?

Also consider the flexibility to adjust your investment strategy without tax concerns. With tax exemption on portability between different funds or financial institutions, PGBL allows you to adapt your investments according to changes in your investor profile and the market, without additional costs. Does this sound like the freedom of choice you are looking for?

Finally, there is an additional advantage: asset protection. In specific situations, such as personal debts, the amounts invested in private pensions have greater asset protection and are not easily accessible by creditors. Wouldn’t this extra layer of security add valuable peace of mind to your financial planning?

There is only one month left until the end of the year and this is the period that all those who complete a full declaration have to take advantage of the benefit this year.

PGBL may be the answer you are looking for to optimize taxes, protect your assets and maintain flexibility in managing your investments. Of course, it is always prudent to consult your investment advisor to ensure the appropriate choice of product so that it is aligned with your objectives and investor profile.

Michael Viriato is an investment advisor and founding partner of Investor’s House.

Speak directly to me via email.

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