December 2022

Dear valued Clients & Associates

With 2022 quickly coming to an end, we would like to take this opportunity to reflect on the past 12 months.

After 2 years of battling Covid19, the world seems to have come to terms with this pandemic and returned to everyday life as before 2020. Unfortunately, this year brought new challenges such as the economic fallout from the Russia/Ukraine war and persisting supply chain constraints which resulted in a sharp rise in the inflation rate, cost of living and interest rates.

WE AT TvZ THANK YOU FOR YOUR CONTINUED SUPPORT. WE WOULD ALSO LIKE TO MAKE USE OF THIS OPPORTUNITY TO WELCOME ALL THE CLIENTS THAT JOINED OUR PRACTICE THIS YEAR.

As a family-run business we are as committed as ever to deliver excellent personal service and advice to you, our client, and help you navigate towards Financial Prosperity & Protection.

RISK COVER: DEATH, DISABILITY & ILLNESS

Our sympathies to those who are currently battling illness and to those who have lost loved ones during this year. The statistics we received from Insurers indicate there was a dramatic increase in claims being paid over the past 2 years, particularly due to Covid19 related claims. This has resulted in stricter medical underwriting and an increase in premiums quoted. This highlights the importance of getting risk insurance while it is still medically possible and affordable.

It is important to review your Risk Benefits annually. Therefore, a Risk discussion is standard on all our Agendas for the Annual Review.

SHORT-TERM INSURANCE

2022 has been very challenging for the insurance industry. The devastating floods in KwaZulu-Natal early in the year along with a significant increase in power surge claims resulted in insurance companies paying out record amounts in claims.

Furthermore, the war in Ukraine and supply chain constraints have resulted in a shortage and significant increase in the cost of imports, especially car parts. This in turn translates to higher claim costs and longer turnaround times.

For these reasons we have highlighted the following recommendations on your renewals:

Home Contents & Power Surge – We have noticed a tremendous increase in the cost of electronic equipment. We would therefore recommend that you increase the sum insured of the Power surge and Accidental damage extensions under the House Contents section to at least R25,000.  We also recommend completing the inventory form that we sent upon renewal. This will help give a better idea of the replacement value of your home contents.

Please note that due to an increase of power surge claims, OMInsure have made it a requirement that your homes have power surge protectors installed on their DB boards for cover amounts exceeding R10 000 for home contents and amounts exceeding R25 000 under building insurance accidental damage cover.

Car Hire – Due to a shortage of car parts, motor vehicle repairs take longer than normal. It is therefore recommended that you increase your car hire to a minimum of 60 days.

Retail Value Top Up – The sale prices of used vehicles are not following the usual trend where used vehicle values decrease annually. The average vehicle values are now higher than indicated in the industry guides. This implies that the retail values received from industry guides are no longer accurate and a customer may find themselves in a position where they are underinsured. It is important that customers review their current vehicle retail values, to ensure that they are not underinsured in the event of a total loss or theft. This extension enables that current claims pay out in the event of a total loss to reflect the current vehicle value in the market more accurately.

Please contact us if you would like more information about the above recommendations.

We would also like to assure you that despite these challenges, we remain committed to offer our clients comprehensive cover with esteemed insurers alongside excellent personal service at competitive and reasonable prices. Every single premium increase is scrutinized in detail and negotiated before it is sent to our clients.

We encourage clients whose short-term insurance are not serviced by us, to send your schedules which will allow us the opportunity to provide comparative quotations, obligation free.

It is important to review your insurance policy on an annual basis to ensure you are sufficiently insured. With renewal, please read the insurance summary and our recommendations carefully. It is very important that you contact us if there are any changes that need to be made to your Short-Term insurance policy.

For any after-hours enquiries/ emergencies or for assistance/ claims during the festive season when our offices will be closed, the following numbers can be contacted.

(Be sure to have your policy number or I.D. number on hand when phoning)

OM Insure

Tel: 0860 247 365         Claims, Emergencies, Swiftcare, Roadside assistance, Home assistance and Medical

                                         emergencies.

Tel: 0860 637 373         General Enquiries like adding or removing items to your policy and all other changes.

Santam           

Tel: 0860 505 911         Claims, Emergencies, Roadside assistance, Home assistance and Medical

                                         emergencies.

Tel: 0860 726 826         General Enquiries like adding or removing items to your policy and all other changes.

 

INVESTMENTS

After a bumper year in 2021 where the JSE had returns of +/-30%, 2022 proved to be a difficult year for global markets.  From 1 Jan 2022 – 31 Oct 2022, our own JSE All share index returned -9.94%.  Global markets faired much worse, with the MSCI world index returning -20.75%, and the American S&P500 index a return of -18.15%.

On a positive note, from 1 – 15 Nov, the JSE all share index returned 14%. This comes after lower US inflation data. The sentiment seems to be that inflation has peaked and the markets have turned. However, we eagerly await coming reports before this can be confirmed.

Markets naturally go through cycles – the last 2 years are a good example of this. Over the long term, equities have proven to be the asset class with the best returns. It is not about trying to time the market but rather time in the market that counts.

TvZ FINANCIAL PLANNING

In April Sonja van Zyl joined our practice when she took over from Elmarie in managing our Short-term Insurance Division. Sonja comes with 10 years’ experience in the short-term insurance industry having previously worked at one of the biggest brokerages in the Western Cape. We are confident that Sonja will continue the legacy we have built up over the years in providing our clients with excellent service at the best possible rate.  We wish Elmarie a relaxing and enjoyable retirement and thank her for her loyal and excellent service. Many of you have already had contact with Jana Pienaar, our new admin assistant. Jana started working with us in May 2021 and very quickly became an integral part of the team.  Jana also started her studies toward becoming a fully qualified financial advisor and we are proud to announce that she is well on her way in achieving this goal. You are welcome to visit and like our Facebook page:  www.facebook.com/tvzfinancialservices as we do share plenty of information on this platform. You may also visit our website at www.tvzfin.co.za.

 

TAX

We are first & foremost Financial Planners. Tax submissions are done to compliment the advice given. We can therefore submit tax assessments, but we cannot guarantee or escalate refund payments or amend any standard policy of SARS. This year SARS had an extreme backlog with audits, and we had a lot of cases where SARS required additional information from clients. This was not the case in previous years. Again, we can assist with the submissions but unfortunately, we cannot escalate any processes. This year SARS specifically requested supporting documentation for donations given, otherwise the donations were not considered as a valid claim. Out of pocket medical expenses claimed have also been scrutinised. Previous years SARS accepted the medical aid certificate reflecting the out-of-pocket expenses, but now SARS also wants proof thereof. SARS argues it is not sufficient proof that the expenses were in fact paid. Therefore, we would strongly suggest making a summary of all the medical expenses paid and keep all records of the invoices as well as the proof of payments. The more info we can submit the better. Only prescribed medicine is considered as a valid claim as well as co- payments for in hospital procedures. SARS extended its auto assessment process this year. We still need to review every assessment or request extension if the information is incomplete. Please allow us sufficient time to review the information, we receive numerous enquiries when SARS does a lot of auto assessments all at once. If any personal information changes, please contact us in good time to be able to disclose the correct information. Banking details are very difficult to change after a submission and delays the process.

 

CLOSING STATEMENT

We are extremely thankful to each client for your continued support. Our success is determined solely on the support of our clients.  Congratulations to everyone who achieved their goals this year, completing their studies or receiving an achievement award. To our Team at TvZ Financial Planning: We would like to thank you for your hard work during the year. Enjoy your well-deserved break.   Please note our office will close on 15 December 2022 @ 11:00 and reopen on Monday 9 January 2023 @ 08:00. Merry Christmas and best wishes for the New Year! Travel safely and enjoy this special time with your loved ones.