![]() Website: www.daberistic.com Email: [email protected] Tel: 011 658 1333/1391 Happy New Year, dear Client/Business Associate, We hope you all enjoyed a nice, relaxing summer break and are ready for an exciting and successful 2016! This year is going to be the best for Daberistic, as we celebrate a 10 years in Business. It is hard to believe that it has been 10 years since we first signed our first policy. We are a company that still values the ownership mentality in its workers and still believes the best way to keep an existing client happy and to earn the trust of a new one is to reach out and give our best. In our first Newsletter for 2016 we look at resolutions to assist you in making 2016 an even better financial than 2015 in the article 5 money resolutions to make in 2016 this will help a better financial life. Another thing to look at is to look at ways to save and get rewards for spending; in our article on Get to Gold on Vitality in 2016 you have a clearer picture on how vitality can be of greater benefit to you. Having a healthy financial lifestyle it is important that everyone in the home is able to understand the importance of saving and learning how to plan finances, our article on Teaching your children sound financial habits helps guide parents how to guide children with finances. With the budget speech nearby it is known that the popular guy in the news will be Finance Minister Pravin Gordhan, luckily for us this time he is not a bearer of bad news as he explains to us in this article SA not heading for recession we will be glad to know that for those who have New Year’s resolution that they want a new car it will be possible. Our article on Car-buying tips for the New Year will help our clients in making sound and wise financial decisions when buying a car. As we start this New Year on the last lap of our first decade, we do so with great excitement as we anticipate what lies ahead. We appreciate you, our existing clients and friends being a part of our intertwined lives. We pledge to continue giving you the best we have to offer and great service you deserve. 5 money resolutions to make in 2016 While the top two resolutions of "save more" and "spend less" seem pretty straight forward, they're easier said than done. "Give yourself a chance to succeed by making sure the goals are meaningful, specific and actionable," said Neil Krishnaswamy, a certified financial planner at Exencial Wealth Advisors in Texas. "And set deadlines." Here are more money moves experts recommend adding to your resolution list: 1. Pay off debt With raising interest rates, 2016 is the year to commit to reducing consumer debt. Many credit card interest rates are variable, which means the annual percentage rate (APR) will likely rise as the central bank continues to raise rates."Those debts are going to get more and more expensive as rates rise," said Christopher Krell, a certified financial planner at Cassaday & Company. If you have several outstanding debts, he recommended prioritizing in order of highest to lowest interest rates when making payments. 2. Create an emergency fund Part of the "saving more" resolution should include putting money aside to cover unexpected expenses or to help make ends meets in the event of a job loss.Experts recommend stashing away three to six months of costs. "Where in that range you fall depends on your personal situation," said Stuart Ritter, senior financial planner and vice president of T. Rowe Price Investment Services. "If you are single and/or at a job that might be more at risk, you want to be at the higher end of that. If you are in a dual-income household ... you can be in the smaller range."Be sure to keep the money easily accessible. 3. Increase your retirement savings Experts generally recommend contributing at least 10% of your income into retirement accounts.If you can't quite swing that much, don't worry, you don't have to make the leap all at once. "Every three months, increase your contributions by 1% to 2%," suggested Kimberly Foss, certified financial planner and founder of Empyrion Wealth Management. 4. Assess your investment strategy It's also a good idea to start the new year by taking stock of your investments and making sure they align with your goals and risk tolerance. Make sure you know exactly what you're invested in. If you choose an asset allocation when you first started investing, you should review and reallocate at least once a year to stay on track. Krell said he recently worked with a couple who thought they were diversified only to realize the various mutual funds and ETFs they chose were all invested in the same stocks. 5. Review your insurance coverage If 2015 brought major life changes like marriage, divorce or a child, it's time to assess your insurance plans and beneficiaries.Life insurance needs tend to increase when there are more dependents on your salary. "Make sure you have two times your salary," said Krell. Also review the beneficiaries of an insurance or retirement plan -- they're likely to change following a marriage or divorce. Source:CNN Money Get to Gold on Vitality in 2016 It is possible for you to reach Gold Vitality status. All you’ll need is a good dose of motivation to get healthier, and these easy steps as your guide. For your benefit, I have attached a number of links below.You may be asking what is the benefit of being Blue or Gold well the higher your Vitality status the more benefits(travel, lifestyle and shopping), savings and cash back rewards for you. How you can get to Gold Vitality status Remember, there isn’t a set order for these activities. This is the recommended path you can take to get healthier:
Source: Discovery Please contact Namhla or Judy in our Health Department, email [email protected] , if you have any queries about Vitality or Medical Aid ![]() Teaching your children sound financial habits It is important to instill the value of money in your children from an early age. If no one teaches your child, how do you expect them to handle their money later in life? Children learn from example, and if they are not taught about debt, compound interest and the like from an early age, they’ll be on the back foot when compared to their peers once they’re in their twenties, and will have to teach themselves good financial habits.Unfortunately, some people do not manage this and soon find themselves facing an insurmountable pile of debt. Don’t dismiss the importance of teaching your children good financial habits. Research by the Money Advice Service has found that money habits, particularly adult money management habits, are formed in children by the age of seven.“Most young children grasp all main aspects of how money works and form core behaviours which they take into adulthood and which will affect financial decisions they make for the rest of their lives,” it stated. Says Danelle van Heerde, head of advice processes at Sanlam Personal Finance: “The best way to teach your children anything is by example. Money habits are no different. Your own attitudes towards money will rub off on your children, so daily life presents a wonderful opportunity to teach children good money habits.” Remember, it’s not what you say but what you do that often has a lasting impact on young children. If you contradict what you say, children will often fall back on following your example, therefore it is pivotal to ensure that you practice what you preach.Says Charl Nel, head of communications at Capitec: “Children learn from imitation from an early age. They also learn by picking up patterns in their own daily experiences – called inductive learning – so involve them in age appropriate money activates as often as you can. Getting the basics right will help your child to build a strong financial base.”Unfortunately, one of the most common mistakes that parents make is trying to keep up with what other parents offer their children. This may be hard when your child comes up to you complaining that their friend has just received the latest gadget. Click here to read more Source: Finweek SA not heading for recession Finance Minister Pravin Gordhan said on 14th January 2016 that South Africa's economy would not slip into recession, rejecting predictions by some economists that sharp falls in the rand pointed to a contraction this year. "We are growing as an economy; we are not going into a recession. But we are not growing fast enough," Gordhan told a media briefing after a cabinet meeting. The rand, among the most volatile of major emerging market currencies, slumped to a record low of R17.9950 to the dollar during Asian trade on Monday on fears that China wanted to weaken its currency aggressively, though it has since recovered some ground. The depreciation has, however, helped SA’s export prospects and, combined with a sharply lower global oil price, has helped to alleviate pressure on South Africa's current account. Gordhan, who returned as finance minister in December, said he would be meeting with the Reserve Bank to discuss how to deal with the challenges of growth. In 2010, Gordhan wrote a letter to then-Reserve Bank governor Gill Marcus asking the Reserve Bank to be mindful of employment and growth alongside its price stability and inflation mandate. "We will certainly be meeting regularly with the Reserve Bank and look at the current environment to see how we approach challenges," Gordhan said. The National Treasury has set a growth target of 1.5% for 2015, though quarterly data suggest this may be hard to achieve. Source: News24 Please contact Kevin Yeh, email [email protected] , if you have any queries about Financial Planning ![]() Car buying tips for the New Year Many car buyers delayed their car purchases to have a car registered in the new year, but it does have its drawbacks, cautions Rudolf Mahoney, head of brand and communication at WesBank. Often a car purchased in January would have been subject to a price increase and it may require careful budgeting to ensure you can keep up with the monthly instalments. “Buying a car is not just a new year’s resolution, it’s a five- or six-year-long commitment,” says Mahoney. “Plan correctly from the outset, and not only will your first year of car ownership go smoothly, but your personal finances will benefit in the years to follow.” In the view of Debt Rescue CEO Neil Roets, it is better to save and buy cash and vitally important to live within your means. "Loans should not be used for day-to-day living. They should only be utilised for buying expensive assets like properties and vehicles," said Roets. “When buying a vehicle, don’t fall into the trap of buying something beyond your means. Rather buy an economy class vehicle than an expensive luxury car.”Roets said it is vital to make financial provision for unforeseen circumstances, for example car repairs or a health crisis that might not be covered by medical aid. “Distinguish between what you need and what you want – do not try and keep up with the Joneses,” he warned. The most important part of the car-buying journey is compiling a list of all current expenses and income. It is important to shop around and compare car prices to find a sensible and affordable car that fits within your budget. On average, a young professional that buys a first car at around the age of 25 and replaces the car every five or so years would have financed around eight cars in his or her car-buying lifespan. As a first-time car buyer, you need to decide wisely. The first car you buy and the way you manage your funds shape your financial future and determine whether you will be stuck in cycle of debt till you retire. Buyers should take note of every amount they have to pay - no matter how small - and subtract those costs from your total income. Click here to read more Source: Fin24 Please contact Thomas in our Short Term Department; email [email protected] , for all car insurance query Contact details Kindly note the following to ensure you get the correct person to assist you with your insurance and investment queries. Life insurance and investments: Kevin Yeh, Thato Merementsi, Nicole Smith Tel 011 658 1333/1391, email [email protected] Medical aid / gap cover:Namhla Zwane, Sophie Su Tel 011 658 1333/1391, email [email protected] Short-term insurance (Personal and Business): Thomas Mooke, Jonavon Theron, Tel 011 658-1333/1391, email [email protected] Retirement funds: Kevin Yeh, Tel 011 658 1333/1391, email [email protected] Tax, Accountancy and Auditors: Su-Lan Chen or Su-Chin Chen, Tel 011 658 1333/1391, email [email protected] 24-hour emergency cellphone number: 076 200 5488.
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Allan Gray's investment platform Allan Gray’s investment platform provides you with access to all their products, as well as a focused range of unit trusts from other fund providers. The platform enables you to buy, sell and switch at no charge between the funds as your needs and objectives change. South African investors who wish to diversify their portfolios have the additional choice of funds from certain other offshore fund providers via the same platform. Allan Gray currently offer access to the following fund providers on their investment platform. You should ensure that the funds you select are appropriate for your needs and objectives. Please contact us so we can send you the relevant fund factsheets, which offer a detailed explanation of the nature of the funds and their fee structures. Click here to read more_ Please contact Kevin, email: [email protected], if you have any queries about Allan Gray investment portfolio Source: Allan Gray Saving vs Investing, What's the Difference? The first step to getting your savings plan right is to understand that there is a significant difference between saving and investing but they have equal importance in terms of crafting a financial plan. Turning ourselves from savers to investors is vital to our long-term success but it is a transition that many of us have trouble making. The act of saving is a secure way of accumulating money. Investing on the other hand carries with it the concept of risk. As a general, rule saving is the process of placing money in interest bearing accounts with fixed or predictable returns. Investing is saving money in vehicles like Retirement Annuities, the Stock Market and Unit Trusts. These products do not earn interest but rather grow in value as a result of the underlying asset. Therefore the risk is higher because you are banking on the fact that the underlying assets of the investment keep growing in value. Fear of investing in the Stock Market or stock based investments makes people seek out very predictable and conservative, places to save. They look for guarantees that won't lose money and they actively avoid placing money in areas where its value could fluctuate. While caution when you are investing or saving is a good thing, being overly cautious could mean that your money does not grow enough to cover the effects of inflation. The solution for the fearful investor is to adopt a long- term view to savings and investing, and to use both of these vehicles to build your wealth. You can have the best of both worlds if you separate out your long term and short- term financial goals. Short-term goals such as new furniture or a vacation can be saved for in traditional savings areas such as fixed deposits or the money market. The longer-term goals, such as having sufficient money for a comfortable retirement, should be provided for separately, in more performance oriented, stock market linked investments. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about investments Source: Hollard Keep your investments on track One of the best ways to explain investment risk is by comparing it to Formula One racing. Aside from the fact that these drivers race at speeds of up to 300km/h around twists and turns on the racecourse, they constantly have to assess risks, such as when the time comes to speed up and when to slow down. A driver like Lewis Hamilton can start the race and keep going at full speed to get ahead of his competitors, but he risks the fact that his car’s engine or its tyres may not be able to hold up to the challenge for the entire race. At some point the driver in front will have to consider whether or not to continue racing at that particular speed and level, or whether to rather slow down a bit in order to spare the vehicle. Luckily, the driver has a team of experts to determine the vehicle’s optimum performance levels within which to remain. Investments in different asset classes are based on the same principle. Between 2011 and 2014, investors enjoyed being in the lead with their investments comfortably outperforming risk-free money market rates. Following the market’s decline and increasing pressure this past month however, the time has come for investors to ask themselves whether they should slow down after having been in the lead for quite some time. Is it really necessary to keep pushing investments above optimum levels in order to win? Before answering that question, it's important to clarify exactly what the optimum levels across the different asset classes are. Let's do this by using historical values and compare those to Inflation (CPI). The moment we refer to different asset classes, most investors will argue that shares offer the best vehicle to outperform inflation. What’s interesting though, is that if an investor invested parts of their capital in local shares, local bonds, property shares and money market 25 years ago (1991), it is property shares that would have performed the best before taxes. However, it is important to note that property shares also started from a low base. Shares still offer the most tax-efficient investment vehicle of the four mentioned above, but even after tax, investors would have only just won the race. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about any investments Source: Fin24 Tax after retirement In financial planning pre-retirement and the benefits of contributing to a retirement fund enjoy a lot of attention, while the optimisation of tax after retirement sometimes takes a back seat. Here are a few ways in which you can cut your tax bill.
Professor Lester advised against leaving assets intended for your spouse in an RA, as your spouse already enjoys the ‘spouse’s rebate’ – so you wouldn’t reduce the estate duty payable if your spouse is nominated as beneficiary. From an estate duty point of view, your children or any heir other than your spouse would make more sense as a beneficiary. (Bear in mind that the trustees ultimately decide who will get your client’s share in the retirement fund. The nomination will guide them, though.)
Please contact Kevin or Thato, email: [email protected], if you have any queries about retirement funds Source: Fanews The CoverBooster special offer Buy a Discovery Life policy before 31 December 2015, and get an extra 32% life cover for no additional premium How the CoverBooster works At policy inception: At policy inception, 32% of your Life Fund will be provided to you for no additional premium. After three years: After three years, you can buy the CoverBooster life cover at a discounted rate of up to 15% depending on your Vitality status over the three year period. This is done free of underwriting. The discount for each year that you are on a particular Vitality status is as follows:
Example: If you are on Silver for three years you would be able to purchase the additional cover provided by the CoverBooster at a discount rate of 9% to standard rates.
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