The Simplest Part of Estate Planning is Often Overlooked

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Vaal Triangle Insurance | Newsletter

February 2021

The Simplest Part of Estate Planning is Often Overlooked

Many financial products, like life insurance, and pension funds, ask you to nominate a beneficiary in case of your death. Doing so is important in making sure that your loved ones are cared for if the worst were to happen.

However, all too often, people forget to keep the listed beneficiaries on these policies up to date. This can cause both complications and, potentially, serious discord between those who are left behind.

Read on to see some of the common mistakes that people make and what you should be thinking about when listing your beneficiaries on any policy.

Should You Tell Your Children How Much You Earn?

Having conversations about money with your children can feel very uncomfortable. Particularly if they ask very specifically about your financial situation, it is tempting to tell them that it is none of their business.

However, building a sound relationship with money starts at a young age, and children pick up a lot from their home environment. Being open to talking about money can go a long way to supporting a positive outlook in them as they grow up.

But just how much should you tell them? In this article we examine ways in which you can talk about your finances with your children in a healthy way.

Don’t Fall Victim to a Ponzi Scheme!

The lure of “easy money” is particularly attractive in times of economic upheaval and financial turmoil, and the criminals behind Ponzi, pyramid and other fraudulent schemes are doubtless eying this year with happy anticipation.

We share some thoughts on why these scamsters are so successful at conning even the best of us, a useful infographic on some of the main “red flags” to watch out for, and ideas on warning others (including your staff if you are an employer) of the dangers and how to avoid them.

Don’t be a victim!

Starting A New Business from Home? Don’t Forget Your Insurance

Despite the tragedy of the Covid-19 pandemic, lockdowns across the world have forced people into discovering new ways of working. This has opened up all sorts of possibilities for people working from home, and the opportunities for entrepreneurs who can use technology to establish and build their businesses has never been greater.

If you are launching a new venture, however, you should think about the importance of having a safety net. Having insurance in place can be invaluable if anything goes wrong.

As a starting point, here are five things you need to think about with regards to insurance if you are starting a new business from home.

Should you top up your RA now?

With the end of the tax year approaching, talk to your financial advisor about whether you should top up your retirement annuities (RAs) this month! Remember that all contributions into an RA reduce your taxable income, and therefore the amount of tax you pay.

You can contribute a maximum of 27.5% of your taxable income to retirement funding each year, up to R350,000. It may make sense for you to use as much of that limit as you can.

Quote of The Month – Sustainable Investing Rising to Prominence

27four Investment Managers:

"This year has potential to see environmental, social and governance (ESG) investing going mainstream. With more money moving into ESG, sustainable investments have seen valuations skyrocket in 2020.

We believe we are at the cusp of a fundamental shift that should see ESG investing rising to prominence. This is likely to create a halo effect for companies trying to be 'greener'."




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Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.

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