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Directors and officers liability insurance in the short term insurance industry, is one of the covers that is most often overlooked and and yet it is certainly one of the most important covers for any business. Its main purpose is to provide financial protection for directors and executives (decision makers) in their personal capacity. Their position puts their personal assets at risk.

A must-read if you are trying to choose between a fixed or variable interest rate:

Q4 Y18

2018 will be remembered as an erratic and uncertain investment year both worldwide and in South Africa. Trump's (and other leaders) strategy of self-preservation at all costs, trade wars, Brexit, land expropriation and state capture is but a part of 2018's legacy.

A professionally drafted will is undoubtedly the single most important legal document one can possess. Unfortunately, the value thereof is often overlooked and misconstrued by many. Statistics show that around 86% of South Africans die without leaving a valid will. The risks of not having a properly drafted will is immeasurable and can detrimentally affect your loved ones in so many ways. Taking into account all the potential risks of dying intestate and the vast knowledge and experience required to draft a proper will, paying a professional to draft your will might be a better idea than googling for templates on the internet.

Q3 Y18 Feedback

In the aftermath of health minister Aaron Motsoaledi's proposals to draft a new set of rules for how medical schemes work, everyone is speculating how this change will affect the industry and South African private healthcare. Time will tell.

Q2 Y18 Feedback

Not having sufficient capital to provide an individual with a monthly income during retirement is one of the biggest risks for investors around the globe. Some of the main reasons are the following:

Practical Tips

Q1 Y18 Feedback

Understand the Risk of Your Investment

When the past is history and the future is uncertain, the present is all you have. In the financial world, nothing is certain, except death and taxes. When a man retires without proper estate- and retirement planning, his wife gets twice the husband, but only half the income. This is unfortunately a sad but true reality for most of us. People may live as much retired from the world as they like, but sooner or later they find themselves being a debtor or creditor to someone. The same can be said about the unexpected death of a breadwinner – without the proper arrangements in place, the remaining family members will eventually be left out in the cold.

With the catastrophic events such as the Knysna fires, a tornado, hail and floods in certain provinces, aircraft accidents and high-frequency car accidents that hit the short-term insurance industry in 2017 and even more recently fresh in memory, the importance and necessity of short-term insurance cannot be emphasised enough. Furthermore, we are experiencing severe drought conditions and uncertain economic and political times that force us to proactively manage our insurance risks.

The 2017/2018 tax year ends on February 28, 2018. This means that you have only a few days left to contribute to a retirement annuity to qualify for a deduction for the 2017/2018 tax year.

Inflation remains the biggest threat to investors, diluting money's purchasing power.

Most of us are under the impression that all financial advisors are certified. Although virtually anyone may use the title "Financial Adviser", only those who comply with the Financial Planning Institute (FPI) strict requirements may call themselves a Certified Financial Planner (CFP®).

Q3Y17 Report

In Pravin Gordhan's 2017 budget speech he announced that the rate for dividends tax will increase from 15% to 20%, effective from 22 February 2017. This is a 33% increase in the dividends tax rate. What are the consequences of this rate increase for shareholders of private companies that live out of their companies' profits?

This is a question being asked by many individuals of which the general answer is 65. Why age 65?

In the previous report there was still some doubt about the French election and the US and North-Korea's threats against each other.

Sweeping new changes to the administration of trusts have been announced by the Chief Master of the High Courts by way of a directive number 2 of 2017, issued in March this year. Paramount to these, are the changes relating to the appointment of independent trustees.

The biggest event for every investor in South Africa this quarter was surely the downgrading of South Africa's credit to "Junk Status". This is the result of unwelcome cabinet changes, political uncertainty and uncertainty with regards to economic policy in South Africa.

Get the right medical scheme that suits your circumstances.

New legislation applicable to all community schemes came into effect on 7 October 2016. It requires among other things compulsory fidelity insurance for all schemes regardless whether it is a residential, commercial or industrial complex. Community schemes include among others the following: time shares, home owner schemes, property schemes, as well as any other scheme where communal use of properties is in operation.

Feedback on Q4Y16

A company's brand is based on more than just a company's logo and other design elements. It consists of a collection of marketing and communication methods that enable a company to distinguish themselves from others and to make a lasting impression on customers and the public.

A will is a legal document and probably one of the most important documents that a person will prepare during his/her lifetime. It is essential that the person who has the will compiled take great care and consideration in the preparation of the will. Please answer the following questions to determine if your will is in good order:

There is no denying the fact that the setting up of a trust, whether it simply holds a barren wasteland or an intricate portfolio of business assets, still remains one of the best tools when it comes to the protection of assets. Be that as it may, many people choose to set up a trust without truly realising the duties and legal responsibilities that emanate from such a decision.

Many employers land up with employee benefits that their staff sometimes fail to appreciate. The main reason is that the employees do not really understand the benefits.

Statements that members will not be able to access their pension and provident fund benefits on resignation are incorrect. There is nothing in the current legislation that restricts a member's access to his resignation benefit in a pension and provident fund upon resignation. Such a member will still have full access to his benefit when he withdraws from the fund. The following points will aid in dispelling the myths and false statements:

A good property manager can add definite value to your property investment. Many property investors understand the value that a property manager can add and uses property managers. Here's a few examples of how a property manager earns his management fee:

I find it ironic that we as investors all have the same ideals when we discuss our financial matters specifically return on investments. Usually we want to chase maximum risk investments resulting in the highest possible returns and no loss in capital. We all know that this kind of scenario is wishful thinking and does not exist in any asset class. During the December holiday I found it insightful to hear in a discussion how upset an investor was because his pension fund showed a mere 9% return in 2015. The question is: do we as investors have reason to be upset about a 9% return? According to Sanlam Investments, the return on SA shares for the past 5 years were the following:

Traveler insurance might not be the best-known short-term insurance products in South Africa, but it is extremely important for any prospective traveler who does not have adequate medical coverage. Travelers to foreign countries annually increases; especially more young people find their way overseas. No matter where you travel, travel involves costs and risks that can suddenly affect your financial situation. The situation is exacerbated by the weak rand that is negatively affected by the foreign exchange rate.

Are you on the right medical scheme?

On July 13th 2015 the Davis Committee published their report regarding changes to estate tax. It is important to take into consideration that this report is only suggestions and not yet legislation. The report is currently available for public inspection and changes as well as suggestions and counter-suggestions are welcomed from the public. If the proposals are accepted by the National Treasury, the legislation will be implemented by March 1, 2016.

Inflation is a word that the general public knows all too well. In short inflation can be defined as the relationship between the buying power of money and the goods and services this money is able to purchase. For example: Imagine that you can buy 50 apples with R100.00 in 2014. Now say that you can only buy 25 apples with the same R100.00 in 2020. This reduction in the buying power of your R100.00 is known as inflation.

You are 25 years old and earning your own income. You buy your first car. Your first thought is to insure it and choose to obtain quotations from insurers for your car, household and some personal belongings that you wish to specify. With great disillusionment you discover how expensive short-term insurance can be for someone your age. Well aware of the risk, with regards to accidents and crime in our country, you have little choice but to accept the premium and arrange for the insurance policy. A month later, one of your biggest fears are realised when your house is nearly left empty after a break in. You, however, feel satisfied that you have at least arranged insurance and paid the premium. The claim is submitted to the insurer for payment. Again you are shocked after the claim pay-out is denied due to incomprehensible reasons.

Many years have passed since the introduction of retirement reform in South Africa. Too many South Africans reach retirement age without sufficient capital to provide them with a monthly income during retirement. They live in poverty during retirement and are dependent on relatives to support them financially and/or rely on state pension. The objective of the retirement reform process is to encourage South Africans to save enough for retirement in order for them to retire comfortably.

Property, as an asset class, has given South Africans solid returns on the long term. It is also seen as the asset class used by most millionaires globally as the building block of their investment portfolios.

On 25 February 2015, the government introduced the long-awaited tax-free savings account (TFSA) effective from 1 March 2015.

Making sure their clients don't suffer any financial damage, is the best service a financial advisor can offer its clients. Financial damage is a controversial concept and certainly differs from one person to another. For example, an older person wants to ensure that his/her capital is protected whereas a younger person would prefer higher growth even if there is a higher risk that capital can yield a loss.