Festive Greetings

With 2020 a few weeks away, it’s a good time to review your finances and think about the things you can do now to achieve your financial goals in the year ahead.

In this newsletter, we remind you about safeguarding your standard of living by having sufficient life and disability cover in place, making informed decisions about early retirement and why investment portfolios should be diversified.

We also focus on the implications that a suspended or cancelled driver’s licence will have on your insurance and provide tips on how to choose a different medical scheme option or benefits. If you are making plans to travel this holiday season, we encourage you to review your travel insurance to ensure that you have the right insurance in place for peace of mind on your trip.

Wishing you and your family a wonderful festive season!

Insure your most valuable asset

Your ability to earn income is your most valuable asset, yet most income-earners, especially those younger than 40, do not realise this and are severely under-insured.

Having sufficient life and disability cover is essential to ensure you and your family can maintain your standard of living if you can no longer work. Many people think their employer’s group life cover and disability insurance is enough to sustain their household if they become disabled or die, but this is often a mistake.

Contact us about safeguarding your and your family’s welfare.

Can you afford to retire early?

If you are tempted to take early retirement, consider how much capital you have and how much income you need to sustain your standard of living before escaping the daily grind.

Your retirement capital should be enough to provide sufficient income to cover your monthly costs, as well as a buffer for emergencies or unexpected expenses. If drawing a conservative income of 4% of your capital would leave you with a shortfall, consider delaying retirement.

Thinking about changing your retirement date? Contact us for advice

Build a diversified investment portfolio

Investing for the longer term should entail following an investment strategy to build a sustainable and well-diversified investment portfolio.

If investments could be allocated a green, orange or red flag, most of your investments should have green flags. Your portfolio should also contain some orange flags and a few red flags. A portfolio of red flags is more likely to lose money than make one a billionaire!

For advice on investment portfolios, please contact me.

Losing your driver’s licence affects cover

If your driver’s licence is suspended or cancelled under the new AARTO demerit system, which came into effect on 16 August 2019, there are implications for your vehicle insurance and future insurability.

If your circumstances change, you need to notify your insurer immediately to update your policy. Depending on the policy wording, you might be able to retain comprehensive vehicle cover if a family member or other person drives your car. Otherwise, you’ll only be able to cover your vehicle against theft and fire.

Changing your medical scheme option

If you want to change your medical scheme option or benefits for 2020, here are some tips to make an informed decision so you are not financially compromised by your change!

Be sure to thoroughly investigate and compare medical scheme options and benefits. Check your current day-to-day expenditure and if your benefits provided sufficient cover or if you were out of pocket. If you are planning a family, undergoing a procedure or currently consulting with a specialist, check if this is covered as part of the network or practice at the hospital network.