In Touch Newsletter November 2024
Funeral cover versus life insurance
Funeral cover and life insurance both offer financial protection to families, but they do so in different ways. Funeral cover funds a dignified funeral and meets immediate expenses. Life insurance helps you leave a financial legacy, as it provides a lump sum to cover living costs, debt or education. A good strategy for young breadwinners is to start with funeral cover and add life insurance as finances allow. This ensures initial protection and broader coverage over time. If you are starting a family, or have dependents, life insurance is essential for long-term security. Read more on the differences between funeral cover and life insurance.
Seek advice before withdrawing retirement savings
The new two-pot retirement system has launched and numbers show that fund members withdrew R10 billion from their retirement savings within the first month. When used wisely, such as to settle high-interest debt or fund education,
these withdrawals can yield long-term benefits. However, withdrawals reduce retirement income and they are taxed. This can impact the net amount you receive and your future tax bracket. Due to the system’s complexities and long-term implications, seeking financial advice is crucial. Financial advisors can help you understand the tax consequences, evaluate how withdrawals affect savings goals and develop strategies to maximise the benefits of the new system. Learn more about the two-pot retirement system.
Stay alert to protect your investments
Cybercrime is on the rise. Tips to keep in mind to safeguard your personal information and investments from digital fraud include:
• Using strong passwords and enabling two-factor sprint, authentication for better account security.
• Installing and regularly updating antivirus software on all your devices.
• Avoid using public Wi-Fi for financial transactions.
Debunking car insurance myths
There are many misconceptions when it comes to car insurance – things like “My premium will drop when I’m over 25” or “If my car is a plain colour, I’ll pay less.” While these ideas may sound true, they often aren’t. Insurers consider your claims history, where you live and work, the value of the vehicle, how long you’ve held a licence, and your driving history. Read this article to help clear up any confusion around myths about car insurance.
Balancing your 2025 healthcare plan
As 2025 approaches, it’s time to review your healthcare plan. Here are factors to consider to balance your health needs and financial well-being. If you downgrade your benefits, you could save on costs, but this decision can significantly impact your finances if you need future treatments. Upgrading your plan could provide additional benefits, and you could even save if this reduces your out-of-pocket expenses. Before you change your plan, consider the fact that healthcare benefits are a crucial part of financial planning and any shortfalls could lead to future financial strain. Contact us to assist with this process. Read more about balancing healthcare needs and costs.
Shop safely this festive season
Holiday spending surges during the festive season – and so does crime – so stay vigilant as you shop for seasonal treats.
With the ease of online shopping and digital payments, card fraud has become more common. The Banking Ombudsman has noted a rise in complaints about tap-and-go transactions using lost or stolen cards. If your card is missing, report it to your bank immediately to prevent potential losses. Also, take extra care when shopping online. Be sure to verify the legitimacy of websites before purchasing – look for secure URLs, read reviews and check that the vendor’s contact details are clearly displayed. Learn more about safeguarding your finances this holiday season.
Take caution when investing your money The Financial Sector Conduct Authority (FSCA) continuously urges consumers to check the credentials of a financial services provider (FSP) before buying products or services from them. To do this, go to the FSCA’s website and search the list of authorised financial services providers. Another useful check is to search through the FSCA’s media releases to see if they have issued any public warnings about the FSP or purported FSP.
