B-Connect Volume 3

When we listen to our clients talking about the pandemic and how quickly we as a nation adapted to the business versus home environment, it amazes me how adaptable we really are to change. Although we initially resisted the change, I am pretty convinced that most of us by now have had a Zoom or Teams meeting and know how to switch the camera and microphone on and how to unmute ourselves. Precisely one year ago, only the absolute minimal persons used either of the platforms daily. This technology has allowed many people to work from home effectively, consult with possible clients and, of course, keep income flowing into their businesses.

In the Financial Planning space, we have seen similar trends. Clients have had time to look at their portfolios and products, changed paying patterns, changed premiums, and amended their policies to a cheaper alternative. The biggest winner was, in fact, the trend of activating new policies. Please always make sure that you consult with your adviser yearly for your product/s to stay relevant – it is in your best interest.

Your financial plan that made perfect sense a few years ago might need some adjusting.

In the Investment space, we have seen a huge take-up of small retirement annuities and tax-free investments. Although the minimum amount to invest is R500, this product can grow over a period of time with compound interest, and it can still give you some income at retirement. It is always good to start saving and investing at a young age. The best quote I have heard from a grandma to her grandson was, “I will rather pay R500 into an investment for you than give you the money to have a good time. You will thank me when you reach retirement.“

If you would like to revisit your Retirement Annuity and make sure that it is growing and not losing value, please get in touch with us.

One of the first products that got cancelled by our clients when the financial burden struck was Life Cover policies. Some companies offered to do a payment freeze, and others reduced benefit cover. Now is the absolute best time to revisit your Life Cover and consider either re-implementing what was taken off or expanding on where there are shortfalls. Please do not forget to re-activate your product – you never know what lies ahead. Reducing cover and restructuring is usually the more responsible way to keep your policy up to date.

Funeral cover is a hot topic at the moment

How much funeral cover is enough? How much funeral cover do you really have? Is it a cash amount, or does it offer a service? When consulting with clients, they usually say they have a funeral cover in place; however, the value is what matters the most. A standard funeral will cost in the region of R30 000, and it is just covering the basics. Why is this important? Because your funeral policy might only cover R5 000 or R10 000 as per the cover that was sufficient 10-15 years ago. As with any policy, it is very important to re-visit your funeral plan and confirm that the cover amount is in line with recent figures and costs. It will ensure that your family is adequately covered.

In the Medical Aid sector, we are heading into Tax season. Please remember that your tax certificate will be e-mailed to you from your medical aid scheme. If your e-mail address has changed because of an employment change, you will need to contact the scheme to update your details. Do this today to ensure that you receive the tax certificate as soon as it is released. An alternative is to download the scheme’s App on your mobile device or to login to the website where your certificates are available for download. You will also receive an SMS from the scheme once the documents are available.

If you or any of your family or friends, perhaps even colleagues, need any assistance with financial products, please get in touch with us. Google is not the best financial advisor to turn to! We are a reputable company that carries certification that permits us to give sound financial advice.

Until next time, please be safe and take care of your loved ones.