Dear valued Clients & Associates
With the festive season upon us, we would like to take this opportunity to reflect on the past year. 2024 saw a significant drop in stubbornly high inflation that persisted over the past 2 years. As a result, global central banks have initiated interest rate cuts.
This year more than 80 countries held elections which means more than 50% of the world’s population headed to the polls. Most elections have concluded without significant disruptions and violence which always results in favourable market stability.
Locally, the formation of the government of national unity (GNU) resulted in many “positives” for our country’s course as highlighted in article below by Adriaan Kruger for Moneyweb.
https://www.moneyweb.co.za/news/economy/good-times-are-here-again/
Klik asseblief hier vir die Afrikaanse weergawe van die Nuusbrief
GENERAL NEWS
This year marked the 30th anniversary since we originated. We reflect with gratitude on how our practice has grown from strength to strength. Over 3 decades we have seen the financial services industry go through numerous changes with tightened regulations, product & service offerings, economic & market cycles and we proud ourselves that we remained true to our core values of excellent personal service with honesty, integrity & humanity.
Thank you to each and every loyal client, associate, partner and team member who have remained with us for the past 30 years.
Well done to Antoni & Marco who have embarked on a journey to further their studies. The confirmation below states that they will both enrol for the Post Graduate Diploma in Financial Planning (NQF8) in 2025 at the University of the Free State.
“The RPL Office facilitated your RPL assessment process, and the Programme Director assessed your prior learning through a knowledge test, case study, and portfolio of evidence. She recommended that you demonstrate a sufficient standard of proficiency to grant admission to the Postgraduate Diploma in Financial Planning (PDFP).”
In line with keeping up with an ever-changing industry, TVZ expanded to add even more benefits to our existing value proposition by partnering with Warwick Wealth. Such benefits include access to:
- Local & international personal share portfolios
- Further offshore and tax efficient investment options
- International trust companies
- High interest banking call accounts & fixed deposit accounts
- Investment funds that utilize some of the most talented fund managers and latest technology (like artificial intelligence).
- Access to all of the top investment platforms including Old Mutual, Sanlam Glacier, Allan Gray, Momentum, AIMS, Ninety One (Investec), Stanlib & PPS.
By now, most clients know our team well. However, to those who have not yet met the whole team, please see below a short introduction of each member and their role in the company:
Janneri van Zyl
Office Manager, Tax Practitioner, Senior administrator
Member Since 2005
Email: info@tvzfin.co.za
GIVING BACK
Every year, our team wants to assist children in need by identifying charity organizations to offer a helping hand.
When we received a message from Happy Babies (NPO 273-594) requesting help to make this Christmas special for a group of underprivileged children ranging in ages from 5 months to 12 years, our team immediately jumped into action to provide care packages containing essential items and gifts for these kids.
Well done and thank you to Dante and the Happy Babies team. We hope this Christmas will be extra special for the kids.
RISK COVER: DEATH, DISABILITY & ILLNES
Our sincerest empathy to those who are battling an illness/injury and to those who have lost loved ones during this year.
We have noted insurers taking a stricter approach to medical underwriting after a period of increased claims.
This highlights the importance of getting risk insurance while it is still medically possible and affordable.
Many employees who leave their employment have an option to convert their Risk benefits within 3 months after leaving without full medical examination. This option is especially beneficial for individuals who might not medically qualify to get cover in place otherwise. We encourage clients to contact us before leaving your employment to provide advice on how to make use of this option.
We encourage our Old Mutual clients to sign up for their rewards program at the below link if you have not done so already. It is a free, no obligations rewards programme; you are rewarded points simply for being an Old Mutual client. Benefits include:
- Points can be exchanged for cash or vouchers at selected retail partners.
- Gym fee rebate depending on your reward tier level
- 3 x drive-me-home service depending on your reward tier level & many more
Join now by clicking on the following link: https://secure.rewards.oldmutual.co.za/web/om/home
It is important to review your Risk Benefits annually. A Risk discussion is standard on our Agenda with our Annual Review.
WILLS & ESTATE PLANNING
Sadly, a few of our clients passed on in 2024. During this difficult period, our team’s main priority is to help carry the administrative burden associated with death to give the family the necessary time and space to grieve.
We have also seen the benefits of having important documents like Wills, Beneficiary nominations, Policy Information, Marital contracts, copy of title- & trust deeds stored in our secure, cloud-based client folders. This way should the family, executor or insurance claim departments require documentation, our team can assist promptly.
Our deepest sympathies to all the families who have lost loved ones over the past year.
Regular review of your will is very important and is a discussion point on our agenda. Please feel free to contact us should you have any queries regarding your will or if you would like to make use of our secure cloud storage facility to store important documentations, which we offer as a free value-added service.
SHORT-TERM INSURANCE
The short-term insurance industry as we know it is changing. Extreme weather patterns continued to plague 2024 and indications are that this phenomenon is here to stay for the foreseeable future. Insurance companies globally are having to re-evaluate their approach to risk and premiums to mitigate the effects of climate change.
Rest assured that we remain committed to offering 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 would also like to highlight the following value-added products available:
Motor Value4U
The global automotive industry is experiencing a myriad of challenges, such as supply-chain disruption, high inflation of new and second-hand vehicle prices. This has completely transformed the industry and are impacting every vehicle owner. With the price of new vehicles skyrocketing due to limited supply and increased interest rates, people are driving their vehicles for longer periods and want to keep them in the best possible condition. This is why OMinsure have launched their Motor Value4U offering to include the following cover at very competitive rates:
- Scratch and Dent – This service is available for new and used vehicles and covers those minor day-to-day accidental damages to the exterior and interior of the vehicle that the owner is not likely to claim for on the comprehensive policy as it might fall within the excess. This cover also includes 1 aircon re-gas per year and 1 battery replacement every 36 months.
- Tyre & Rim – It is well known that many of our roads are not in a good condition. Value4U Tyre & Rim cover assists when those road hazards catch the vehicle owner off guard and vehicle tyres, rims or mags are damaged. It takes care of those road hazard damages usually not covered by comprehensive car insurance. This cover includes 1 puncture repair per quarter and 1 wheel alignment per annum.
- Extended Warranty – Covers a range of components (including engine, transmission, aircon, steering, etc) and can help to offset those unexpected costs of fixing or replacing parts in the event of sudden and unforeseen mechanical breakdown or electrical failure, which in turn can be very expensive. Value4U Extended Warranty prolongs the car’s life, potentially increasing its resale value. Perfect if the owner is planning to keep the vehicle for longer!
Please contact us if you would like more information.
With the annual renewal, please read the insurance summary and our recommendations carefully and feel free to contact us with any enquiries.
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.
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)
RETIREMENT
Over the past 3 decades we have helped hundreds of individuals retire from a wide variety of pension/provident funds, each with their own set of processes and rules. We have assisted many public sector employees to maximize their retirement income by making use of their full pre-1998 tax free benefit where in some cases they can withdraw their full 1/3rd lump sum gratuity without any withdrawal tax applicable.
In recent years, we have seen many families become global citizens where pensioners retire and live in South Africa and their children and grandchildren live abroad. Unfortunately, The South African Rand does not go a long way in countries with strong currencies like the UK, Europe, Australia, New Zealand, USA and Canada. It is therefore important that one takes these factors into consideration when planning for your retirement. Our team have put together several models that can provide optimal offshore exposure to retirement savings to offset the effects of a weak Rand.
Feel free to contact us if you or a colleague might require guidance in terms of retirement or if a severance package are offered in the near future.
Welcome to all our new pensioners and best of luck with this new stage of life.
INVESTMENTS:
2024 started with some market uncertainty which was mostly linked to the various upcoming elections globally and due to high interest rates. However, since then, our election has concluded, the national government of unity installed, and interest rate cuts have taken place.
From 1 Jan until 15 Jun 2024, the JSE ALSI returned 0.21%. From 16 Jun to 25 Nov, the JSE ALSI returned 11.10%.
The Rand also strengthened by 1.83% against the US dollars since the beginning of the year. Our team have also attended numerous investment seminars & conferences over the past 6 months and the general sentiment is much more positive compared to a year ago.
As we have mentioned before, markets move through cycles, and you must be very careful when disinvesting as you could potentially realise your losses. As is the case with all our investment portfolios: We spend hours researching each investment fund and fund manager to ensure that each portfolio is well diversified between various asset classes, regions (local & offshore) and fund managers – each with their own investment strategy.
Interest rates around the world are on a downward cycle.
This implies that the interest earned from Money Market investments will be lower.
Keep in mind that interest earned are taxed which further erodes the return on Money Market products.
Money Market products in general do not allow you to nominate a beneficiary which in turn will attract Executor fees.
Contact us if you have funds invested in fixed deposits or money market accounts and wish to invest in a diversified, tax efficient, low risk portfolio.
Over the past 3 decades we have seen numerous schemes that promise high returns over the short-term like the one ongoing case in the news related to “diamond dealing”. Please be extremely careful and do the necessary due diligence when approached to invest in one of these schemes.
If returns sound too good to be true it usually is, and you could be dealing with a Ponzi or Pyramid scheme with severe consequences.
TAX
Our passion at TVZ Financial services are Financial Planning. 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 challenges of their own. There were increasing attempts to hack E-filing profiles, to manipulate the system or to change banking details to fraudulent accounts. Luckily all our clients are on one Tax Practitioner Profile which ensures we can quickly react if any suspicious activity occurs. SAIT, our tax body, are constantly in contact with SARS to streamline processes, reduce fraud and solve challenges.
If you receive any emails claiming you have a SARS refund due or any similar messages please always check with Janneri, our tax practitioner, to verify the message and never click on any suspicious links or open any attachments to minimize any risks.
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.
Annually, we assist approximately 250 clients with tax submissions. Janneri works systematically to ensure all submissions are done in good time. Thank you for your patience and understanding in this regard.
COMPLIANCE
We are pleased & proud to announce that all our compliance functions and systems are up to date. We received a 100% rating on all compliance reports and were awarded Masthead’s seal of approval for 2024.
Our focus continues to be on “knowing our client” and ensuring the client knows who we are. This is to ensure FICA compliance and alignment with the Conduct of Financial Institutions (COFI) bill that is aimed to be finalized by 2026.
By knowing our client, we can provide personalized financial planning specific to each individual’s needs.
By knowing who we are, the client can rest assured that their portfolios are managed by a trusted team with an established track record.
Thank you for not only entrusting us with your portfolios, but also trusting us with your family, colleagues, and friends. We are grateful for each & every referral.
CLOSING STATEMENT 
THANK YOU TO EACH AND EVERY CLIENT, PRODUCT PROVIDER, BUSINESS PARTNER, STAFF MEMBER AND OUR FAMILIES FOR YOUR CONTINUED SUPPORT.
WE WOULD ALSO LIKE TO TAKE THIS OPPORTUNITY TO WELCOME ALL THE CLIENTS WHO JOINED OUR PRACTICE THIS YEAR, WE LOOK FORWARD TO WORKING TOGETHER FOR MANY YEARS TO COME.
Congratulations to everyone who achieved their goals in 2024. We look forward to having another prosperous year in 2025.
Remember to follow and rate our service on Facebook and feel free to visit our website at www.tvzfin.co.za for news and updates.
Please note our office will close on 13 December 2024 and reopen on 8 January 2025.