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 30^th 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:

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 1/3^rd 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.

Merry Christmas and best wishes for the New Year! Travel safely and enjoy this special time with your loved ones.

DEAR VALUED CLIENT,

With the past election we hope everyone had time to rest and reflect after what could be considered one of the most important periods in our country’s history.

This year marks 30 years since our founder Toni van Zyl opened our doors. Over the past 30 years we have built up wonderful relationships with our clients that extended to their Children, Moms & Dads, Oumas & Oupas, Ooms & Tannies, Neighbours, Colleagues etc. We have seen our clients go through so many life stages: From the first contribution towards retirement to retiring, young parents starting to save for a child’s education to that same child graduating, young parents and couples taking steps to ensure their families are taken care of if they are not around anymore to assisting families with the death of a loved one.

Antoni & Marco went from tagging along with Toni & Elmarie to see clients and dropping off calendars during December holidays to becoming financial planners ourselves and taking over the reins of the company when Toni & Elmarie retired.

In 30 years, we have been through a global pandemic, numerous global market crashes and rallies, deaths, births, divorces and weddings, but the one thing that has remained is our unwavering commitment to our clients.

We are grateful for every single one of you and thank you for putting your trust in us. We are also grateful to our founders/parents for instilling in us our core values of honesty, integrity and humanity.

DAILY OPERATION:

At TvZ we are always keeping our eye on the latest trends in technology. As most of you have seen in the media, AI & ChatGPT is technology that is impacting various industries around the world – including finance. Not one to fall behind, our company have also implemented ChatGPT to assist us in analyzing & simplifying large amounts of data. This technology has already had a major impact on businesses and society as a whole and will continue to do so in the future. At TvZ we see this technology as a handy tool to help us deliver excellent service to our clients, however we strongly believe that our true value lies in the human touch and personal service, and we will continue to give exactly that to our clients.

We have also included WhatsApp as a communication medium. This medium works particularly well for sending & receiving information related to short-term claims like photos. Please feel free to let us know if you would like to be added to our broadcast list to receive industry news & feedback via WhatsApp. You simply have to click on below WhatsApp logo, follow the prompts and send us HI with your name & surname.

Please note that the WhatsApp line is only set up for messaging (not calls) and monitored during working hours. Email and our office telephone line is still the preferred communication method.

SAVINGS & INVESTMENTS:

Unfortunately, CPI remains stubbornly high at 5.2%, which implies interest rates will continue to remain at the current high level. This causes a lot of strain on people with debt, but it also implies interest earned is at a high level. The JSE All Share Index have underperformed over the past year at 2.2%. The shining light was the performance of the international funds with the MSCI global market index achieving 17.3% over the past year.

We have seen strong growth in clients’ investments over the past year. The biggest contributing factor for this performance growth is our well diversified Investment Models which include a healthy allocation to international funds.

TAX:

SARS announced the upcoming Tax Season will open on 15 July 2024. The auto assessments will commence between 1-14 July.

The auto assessments are done automatically by SARS, but we monitor the assessments for any     errors and will handle each case separately. If you receive any correspondence from SARS please      forward to Janneri, our tax practitioner, to check the status on e-filing. There are a lot of fraudulent emails/SMS’s doing the rounds where fraudsters try to duplicate correspondence from SARS trying to obtain funds or personal information. Please send any correspondence received from SARS (or seemingly from SARS) to Janneri to verify.

As is the case every year, we have some clients who are in a hurry to finalize their Tax return submission. We understand this completely and would like to assure each & every client that we aim to complete all the Tax returns as accurately and speedily as possible.

Please understand that we have +/- 300 Tax returns to complete annually, which does take some time. We are also dependent on the effective operation of the e-filing website. If SARS requests additional information for a client, we provide the information as soon as possible and we also follow up on each case depending on the timelines specified by SARS.

Please note that we also have no influence on speeding up the audit process or refund payments due to clients.

You are welcome to send your tax documents as soon as you are ready. Janneri works from a first come first serve basis:

• For medical expenses paid from pocket (for period 1 March 2023 – 29 Feb 2024), please send the summary as well as the invoices/ proof of payments (SARS accepts the attached Excel spreadsheet for summarizing the information of the medical expenses). If possible, please send the medical aid certificate as well.
• Logbook (you may use SARS’ logbook attached)
• Any other expense receipts
• Donation certificates (if applicable)

We will be able to retrieve the Retirement Annuity certificates from Old Mutual, Sanlam, Allan Gray and Liberty ourselves. Any other company please forward as well. Janneri will handle and capture the necessary tax data during the month of June to make the submission process as seamless as possible when the system opens.

Your patience in this matter is greatly appreciated

SHORTTERM INSURANCE:

The insurance industry continues to be under severe pressure with climate change and increased inflation is the biggest culprit.

Inflation on Vehicle parts are currently around 13%, significantly higher than the current consumer price index of 5.2%.

Catastrophe claims like storm, fire, lighting, earthquake etc. have seen a drastic increase in recent years. Insurer data shows that between 2000 and 2011, the average annual cost of CAT claims was R39 million. However, in the last decade from 2012 to 2022, the average annual CAT claims amounted to R371 million.

These factors have had a significant impact on premiums and risk tolerance. We have seen numerous instances where insurers are unwilling to accept clients with a high claims history.

Please rest assured that our team is constantly engaging with the insurance industry to address the current challenges and to negotiate the best possible premiums for our clients as we are fully committed to providing you with the correct cover at the best possible rate.

Please read your renewal emails and summaries carefully as we highlight potential risks and offer solutions to address them as well as ways to potentially save on premiums like increasing excess amounts.

LIFE INSURANCE & RISK COVER:

Similar to the short-term insurance industry, the life insurance industry has also suffered significant claims in recent years largely due to COVID. We have found that this has made underwriting stricter than normal and have had many instances where clients were denied cover due to pre-existing medical conditions.

We therefore encourage you to contact us should you have any queries about your own life/ disability/ severe illness insurance or if you would like to apply for more cover.

IN SUMMARY:

It is important to remember that economic indicators like inflation and interest rates work in cycles. The world recently went through a low inflation/ interest cycle mostly due to Covid 19 and is currently going through a high cycle as a result. Be assured that the cycle will turn again as it has done numerous times in history. It is therefore important to stick to your long-term goals and avoid lapsing/ cancelling risk cover policies as insurers could decline cover or increase the premium of the cover due to low risk tolerance.

Please visit our Facebook page for relevant news and information shared 

We would also appreciate it greatly if you could write a review on our Facebook page. You simply have to click on below Facebook logo and write away.

 Warm Regards from all of us here at TvZ

Dear valued Clients & Associates

With the festive season fast approaching, we would like to take this opportunity to reflect on the past year.
Although we seldom hear the term Covid 19 these days, we still see the effects of the fallout from the pandemic. Deadly wars and devastating weather patterns played out in 2022 & 2023.
We saw multiple nations grapple with high inflation and as a result most federal/reserve banks had to increase interest rates to the highest levels seen in decades.

We saw our nation come together to back the Springboks who have once again given the world a taste of our “never say die” attitude, passion, and unity.
Like Dricus Du Plessis (The MMA Superstar from South Africa) wisely said “hulle weet nie wat ons weet nie” (they don’t know what we know).

Thank you BOKKE for giving us hope once again.

WE 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.

GENERAL NEWS

We are extremely proud to announce that our colleague and administrator, Jana Pienaar, has passed all the required qualifications, class of business training and regulatory exams and is now fully qualified as a financial advisor.  Well done, Jana!

It has become clear that WhatsApp has become an integral part of communication. Therefore, we have invested in technology that will allow us to incorporate WhatsApp in our Customer Relationship Management system (CRM). This way, we can easily capture messages, photos and videos in our database that are sent to us, making communication faster and easier for our clients.

Please note that email is still the preferred means of communication for requests relating to withdrawals, debit order date or banking details change, Will and beneficiary amendments and claim reporting. Whatsapp will be used to communicate important messages promptly to clients and clients can send claim related photos and other non-confidential information easier this way. This number will be monitored from Monday – Friday from 08:00 – 16:00.

If you would like to receive messages from our office via WhatsApp, please send a message containing your Name & Surname to the following number to be added to our WhatsApp database: 068 720 1813.

You are welcome to visit and like our Facebook page:  www.facebook.com/tvzfinancialservices as we do share plenty of information on this platform. Please feel free to visit our website as well at www.tvzfin.co.za.

WILLS & ESTATE PLANNING

Liquidity is an important aspect of any

Estate to make provision forEstate and

transfer Fees.

With sufficient planning, liquidity shortages can be addressed before death.

Our relationship with Attorneys, Visagie Vos & Partners, have been longstanding for many years and together we have dealt with numerous late estates and death claims.

The regular review of your will is very important. It is also a standard discussion point on our Agenda with the Annual Review.

RETIREMENT

A recent survey conducted by debt rescue on 1900 participants found that 40% of South Africans are more afraid of retirement than death, while 59% admitted to being completely unprepared for retirement.

There is a myriad of ways to save for retirement, it does not just involve RA’s, Pension & Provident funds. However, contributions to these products are tax deductible which is a welcome incentive.

It is therefore very important to sit with your financial advisor to compile a retirement plan that suits your individual needs.

When it comes to retirement and severance packages, it is very important to understand the tax implications and process of each available option.

Over the past 29 years we have assisted numerous clients retire from a variety of retirement funds, each with their own procedures.

The experience gained over the past 29 years has helped us develop contacts and standard procedures for several pension/provident funds, ensuring the process is efficient and as quick as possible.

Feel free to contact us if you or a colleague might require guidance in terms of retirement/severance in the coming months.

Welcome to all our new pensioners and best of luck with this new stage of life.

TAX

                                                                                                                     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 2023.

This year there was a specific focus on “knowing your 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 plans that is catered toward their individual 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.

We pride ourselves in the fact that most of our new clients are referred from existing ones and looking at our client base, most clients can be linked to one another.

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. Thank you Masthead for your continued guidance and support.

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 Product Providers, Admin Team, Consultants, thank you very much for your support during 2023.

Please note our office will close on 14 December 2023 and reopen on Monday 8 January 2024.

Merry Christmas and best wishes for the New Year! Travel safely and enjoy this special time with your loved ones.

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

TAX

CLOSING STATEMENT

Dear valued Clients & Associates

With 2021 quickly coming to an end, we would like to take this opportunity to reflect on the past year.
We are all very much aware 2021 has continued where we left off in 2020. There were more lock-down restrictions due to Covid 19. Mid-year we saw riots in Gauteng and KwaZulu Natal that shook our nation.

Sadly, there were many individuals who have lost their source of income or had to accept salary reductions and those who have lost loved ones. Please know that we carry you in our thoughts.

At the end of last year, we started seeing news reports of vaccines with high efficiency rates being manufactured. By February 2021, South Africa received our first batch of vaccines. As of 25 Nov, 23.5% of SA’s population and 42.6% of the world population have been fully vaccinated and continues to increase daily. A truly impressive feat that was unheard of until now. This massive vaccine drive has helped us return to a somewhat normal life. However, we must accept that Covid will be with us for the foreseeable future, and we need to continue to practice the necessary Covid safety measures.

The JSE ALSI have achieved phenomenal growth over the past year with returns of +/- 30.5% year to date. If we compare this performance with Money Market at +/- 3.8%, it is clear South African Equities was the asset class to invest in this year.

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 that we receive from Insurers highlights the fact that there was a dramatic increase in benefits being paid, particularly due to Covid related claims. These statistics again highlight the importance of Risk cover.

It is important that Risk Benefits are reviewed annually. This is the reason a Risk discussion is Standard on all our Agendas for the Annual Review.

SHORT-TERM INSURANCE

The Covid 19 pandemic forced many companies to opt for a work-from-home solution. While this solution worked seamlessly for some, it presented many challenges for others. Over the past year we have heard of many instances where clients could simply not get through to their insurance company to register claims, make changes to their policy or to lodge a complaint.

By working with an intermediary/broker, you have one contact person to handle all your short-term insurance needs.

We remain committed to offer our clients the best cover alongside excellent personal service at competitive and reasonable prices.

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 assistances/ 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.

Auto & General                                  

Tel: 021 527 8666         Claims, enquiries, or changes to policy.

Tel: 0860 104 210         After-hours emergencies.

INVESTMENTS

On 20 March 2020 when it became clear that Covid 19 will have a global impact, stock markets around the world plummeted.  Our own JSE all share index fell by close to 30%.  Since then, the ALSI has recovered by 47.55%.

This again goes to show that investors should avoid making emotional decisions during difficult times and stick to their long-term investment strategy as these decisions could cost them dearly. This also proves that over time the Market does recover and that the old saying still hold true:

It is not about trying to time the market but rather time in the market that counts.

TvZ FINANCIAL PLANNING

As mentioned before, due to most insurance & investment companies having implemented a work-from-home solution we have experienced many communication challenges over the past year.

For this reason, we have appointed another office administrator to assist with follow-ups, queries, and escalations.

Many of you have already had contact with Jana Pienaar, our new admin assistant. Jana started working with us in May and very quickly became an integral part of the team. We are confident that she will have a bright future in the financial services industry. We are very proud of Jana for what she has already achieved and learned in a short period of time.

We encourage you to visit and like our Facebook page:  www.facebook.com/tvzfinancialservices as we do share plenty of information on this platform. You are also welcome to visit our website www.tvzfin.co.za

TAX

Please note as mentioned before: 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 claim 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, that was not the case previous years. Again, we can assist with the submissions but unfortunately we can not escalate any processes.

Due to many working from home during lockdown, we had numerous clients needing guidance with home offices expense claims. Thankfully, our tax administrator, Janneri, had assistance from Jana to deal with this influx of queries.

Thank you Janneri and Jana for seeing us through a very busy tax season.

CLOSING STATEMENT

Again, we are extremely thankful to each client for your continued support.

Our success is determined solely by the support of our clients.

Congratulations to everyone who achieved their goals this year, completing their studies and any achievement awards.

To our Team at TvZ Financial Planning: We would like to thank you for your hard work during the year. You must enjoy your break as it is earned and very much deserved.

Please note that our office will close on 15 December 2021 @ 13:00 and reopen on Thursday 6 January 2022 @ 08:00.

Our office will also be closed on Friday 10 December from 10:00 as we will be attending our Year End function.

We are really looking forward to 2022!

Merry Christmas and best wishes for the New Year! Travel safely and enjoy this special time with your loved ones.

Since our last letter dated 24-06-2021 a lot has changed in our Country. We have gone through a period of stricter lock-down and we have since then seen these restrictions lifted again.

We have also seen severe cases of looting in the KZN & Gauteng provinces from which we are still recovering.

On a positive note, the Vaccination roll-out has gained significant momentum with over 7 million people who have received a dosage already.

It seems that there is a variety of factors that contribute towards the higher uptake of people being vaccinated. It looks like the main contributors to this is that you don’t have to wait for your vaccination appointment, many vaccination sites accept walk-ins & that younger people who are now allowed to register are eager to receive their vaccination shots.

In our office we have all received our first dosage of the vaccine, except for Jana who is not yet eligible to register.

We are sad to announce that Liza Buunk has left our employment due to personal reasons.
We would like to take this opportunity to again thank Liza for her contribution over the past 18 months and to wish her all the best for the future.

We are however very excited to introduce a familiar face who will be overseeing our short-term department for the coming months.

A warm welcome back to Elmarie van Zyl. Elmarie has had a well-deserved break over the past 18 months and is now more than ever excited to tackle the short-term insurance head on.

Most of you are well acquainted with Elmarie so we know this transition period will be very smooth.

Please note that Elmarie will only be overseeing the short-term insurance department, Marco & Antoni will continue to provide advice on the Risk & Investment products and handle the annual review meetings.

Please make use of Elmarie’s contact details for any short-term related queries.

Email: insure@tvzfin.co.za

Tel: 021-856 2100

Please stay safe and healthy.

Kind regards from all of us here at TvZ.

DEAR VALUED CLIENT,

It has now been 15 months since we went into lockdown and in many economic sectors, we have seen a significant recovery. However, we will only start to see a glimmer of the life we knew once most of our people have been vaccinated.

As we are amid a third wave, we encourage you to continue practicing the necessary safety protocols: Avoid crowded areas as far as possible, wear a mask in public and wash your hands regularly.

Our deepest sympathies go out to those who have lost loved ones or their livelihoods.

DAILY OPERATION:

Over the past 15 months, our team has continuously looked at how we can continue to provide our clients with excellent service, and also where we can improve their experience. We do not believe that challenges such as load shedding and lockdown should be an excuse for bad service.

Even before the initial lockdown, all our files were digitized and securely stored in the cloud. As long as we have internet access this allows us the opportunity to access client information and complete service requests from anywhere in the world. This feature helped us significantly during the hard lockdown when we all had to work from home.

We have also installed an UPS that will ensure our internet and phone line stays operational during load shedding.

Furthermore, we have noticed that since most product provider/insurer’s staff is still working from home, there are unfortunately delays in response times. For this reason, we have employed another administrative assistant to help ensure our client’s service requests are prioritized and attended to in a timely manner.

We would like to use this opportunity to introduce you to our newest team member, Jana Pienaar.
Welcome Jana, we are confident that you will have a long and fruitful career in the financial planning industry.

Please also continue to follow our facebook page for regular updates: https://www.facebook.com/tvzfinancialservices/

SAVINGS & INVESTMENTS:

If we look at the performance of the ALSI & Money Market this year compared to last year we can clearly see that Money Market has decreased significantly and the ALSI has increased significantly:

1 January 2020 – 23 June 2020

ALSI                                                          Money Market
-5.58%                                                      3.27%

1 January 2021 – 23 June 2021

ALSI                                                          Money Market
10.48%                                                     1.88%

1.These percentages indicate that you must stay committed to your long-term investment strategy.
2.The ALSI does recover over time.
3.The ALSI offers significantly higher REAL returns over the longer term.

SHORTTERM INSURANCE:

We encourage you to read through your policy schedules and summaries carefully and let us know if there are any questions or important information we should know about as this could affect the outcome of any claims submitted.

Please make sure to let us know if there have been any material changes that could affect your short-term policy: Items such as: change in address, change in security details, change in driver of vehicles etc.

RISK INSURANCE:

Old Mutual recently relaunched their retrenchment cover product along with other new features to their risk products. The Retrenchment cover pays up to 60% of your salary for a period of 6 months in case of retrenchment.

Covid19 has had a devastating impact on our economy which led to many retrenchments. Should you be concerned about your own job security, please contact us for more information on this product.

Another great benefit of Old Mutual’s new Protect range is the option to stop paying life insurance premiums when you retire.

Over the years we have seen many pensioners unable to afford their life insurance premium after retirement.
By selecting this option, you can already address this problem while still working, if the benefit start date is not within 10 years of the retirement date.

Feel free to contact us should you want more information on this benefit.

TAX:

Tax season will officially open on 1 July 2021. Over the past couple of weeks, we have attended webinars and studied numerous communications relating to expenses that can be claimed if you work from home.

Unfortunately, SARS has not significantly amended their rules to accommodate those who were forced to work from home during the lockdown period, thus the rules that are currently in place are similar to the strict ones that were there before lockdown.

Below are some key points that were highlighted:

• SARS stipulates that you can only claim if your home office is an exclusive and specifically equipped dedicated area solely used for work purposes (If the room is used for leisure or has furniture not related to work purposes). If you and your spouse shared this space, you do not qualify either as the space is then not specifically equipped for your trade alone.

• The taxpayer must provide proof that the home office is used exclusively for work purposes (Building plans, photos).

• Another requirement is that you had to have worked from home for more than 50% of the tax year. You can also only claim expenses for the months that you worked from home.

• Should you qualify SARS will need plans of the house to confirm exact percentages of the floor plan that is used for the home office (this cannot be an estimate). The whole house (garages included as well as any flats) must be considered in this calculation. For example, if the whole property is 200m² and your home office is 20m², then you can claim 10% as home office expenses.

• SARS also stipulates that a letter from the employer alone confirming you worked from home is not sufficient proof you did in fact work from home (working on the road or in a coffee shop is not considered as a home office), therefore if you have any other proof like timesheets this can be added to the supporting documents.

• You cannot claim for stationary, cell phone costs, internet costs or office equipment (only commission earners can claim for these. Salaried earners are required to claim these expenses from their employers).

• You can only claim in relation to costs incurred assigned to the fixed property:

1. Rent or interest on the bond (then a bond statement must be supplied)
2. Maintenance (repairs), but it should be in relation to the home office (As per SARS communication:

Any repairs to the property must have some relation to the home office in order that the deduction is not prohibited. For example, if the garage interior or bathroom is repainted, or a window in the master bedroom repaired, no portion of such repair may be claimed, as that expense will not have been incurred for the part of the premises occupied for trade.
If, on the other hand, the entire roof of the property has to be repaired because it is in a state of disrepair, then the cost of such repair, apportioned based on the floor area, may be claimed as a home office deduction.)

3. Expenses in relation to the fixed property – cleaning services and electricity
4. Rates and taxes, sewage, refuse and levies
5. Wear and tear to the building itself

• Unfortunately, you cannot deduct bond/credit life insurance or home contents, you can only claim homeowner’s insurance that insures the property/building.

• Only a percentage of the expenses mentioned above can be claimed as calculated according to the floor plan. For example, if it is calculated that your home office is 10% of the entire building, you can claim 10% of the allowed expenses. Therefore, if all expenses are a total of R10 000, then you can only claim 10% of R10 000. This amount will then be deducted from your taxable income (you will not receive the full R1000 as a refund).

• SARS have already indicated that they will be scrutinizing every expense claimed which will most probably imply that those claiming for home office expenses will be audited and requested to provide supporting documentation (audits can take approximately 3 months if no additional documentation is requested).

We ask that you please be patient with the tax submission process as we have many tax returns to submit. You can rest assured that your tax return will be handled with the utmost care.

PLEASE STAY SAFE & TAKE CARE OF YOURSELVES & YOUR LOVED ONES

                                                                                      Top from left to right: Antoni, Liza, Marco                                                                               

Bottom from left to right: Janneri, Jana

Kind Regards
TvZ Financial Planning Team

Dear Valued Client

Over the last week a couple of News Reports made headlines which are of importance to our clients:

1.) ABSA CLOSES ITS MONEY MARKET UNIT TRUST:

https://www.businessinsider.co.za/absa-closes-money-market-fund-2021-4

Those of you who have funds invested in the ABSA money market unit trust would have received a letter from ABSA to inform you that their money market fund will be closing and that you have until 1 July to decide as to where you want to move your funds.

During a recent survey, the bank found that many clients were under the impression that their money market fund offered a guarantee on the capital as well as the interest.

This is however incorrect.

For many years, conservative investors preferred money market funds as it offered consistent inflation beating returns without taking risk.

However, since interest rates were cut to a 50-year low to provide relieve to those affected by the economic impact of covid19, these investors saw their returns effectively decrease from around 5-7% annually to about 3-4%.

Thus, there exists now a bigger risk for investors who draw down an income of 4% and more to start eating into their capital.

So, what is the solution?

Over many years, our practice has identified and recommended investment funds that offer the same (or better) benefits than a money market account, namely, inflation beating returns with minimal volatility.

An Investment that is not solely Interest bearing so to minimize the Tax implication on Interest earned.

One such fund is the Coronation Strategic Income fund.

From the graph below you will see that over the 1-, 3-, 5- & 10-years periods this fund has consistently beaten inflation by 3% +, it is also important to note that this fund is not 100% Interest Bearing so the Tax liability will also be reduced.

You must also remember that it is important to have growth assets in your Portfolio as well.

The graph below illustrates the returns of some of these growth funds.

It is very important to understand that your investment will still be invested Conservative or Cautious even if we include a small percentage of these growth assets in your Portfolio.

If you are one of the ABSA clients who received this notification, feel free to contact us for a free consultation to discuss your options.

THOSE WHO WORK FROM HOME, COULD CLAIM EXPENSES BACK FROM SARS:

https://www.iol.co.za/personal-finance/tax/been-working-from-home-you-can-get-money-back-from-sars-ddf8380d-6d9d-46f2-9ee6-d0f1e1776f10

Due to lockdown, many employees were forced and continues to work from home during the 2020 tax year. If you meet the criteria mentioned in the above article, you could potentially claim some of your home expenses back from SARS.

Unfortunately, we have not received official details from SARS yet but will keep you posted once we have more information.

For now, we can recommend reading the above article for more info and if you meet the criteria, keep track of the claimable expenses mentioned until tax season opens in July 2021.

PLEASE STAY SAFE & TAKE CARE OF YOURSELVES & YOUR LOVED ONES

Kind Regards
TvZ Financial Planning Team