PART TWO – Retirement annuities, benefits and why you need them… In general, there are many different investment vehicles to use to invest for retirement including pension and provident funds, Tax Free Savings Accounts etc., however I’m going to focus my discussion on retirement annuities, and why retirement annuities should form part of your financial war chest. Let’s start with, what is a retirement annuity? It’s a specialised investment vehicle used by individuals to save for […]
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1.. 2.. 3.. Retirement… Prepared? (pt 1)
PART ONE – Ways in which we retire… know your end destination! The retirement landscape has changed drastically since the early Roman Empire times… which some of the services providers haven’t reflected in their fees… sssshhhh It means that every person has a different idea of how they want to get to retirement. The graph below gives you an understanding of the different ways you can go into retirement. Traditional retirement Traditional retirement is broken into […]
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The Two-Pot Retirement System
Newsflash: Very important! The two pot (actually three pots) retirement system becomes effective from 1 September 2024 and is applicable to pension-, provident-, retirement annuity-, and preservation funds. In other words, to pre-retirement funds. 1. Savings pot From 01/09/2024 one-third of contributions are allocated to this pot, which can be withdrawn once a year at any time before retirement, subject to tax. Withdrawals can only be made if the member has a tax number. The savings […]
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Six tips to improve your credit rating
Your credit score is a rating that banks and other financial institutions use to determine how much money they can lend you, and at what interest rate. It has a huge impact on your financial health and on your life in general. Home loans, cell phone contracts, car finance… These all hinge on your credit score. Why is a good credit score important? You get access to more credit, and you qualify for better interest rates. […]
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Ensuring Your Children’s Future: Our Guardianship Solution
If both parents of a minor child pass away simultaneously, several critical issues arise: Minor children cannot directly inherit cash. Identifying who the deceased parents appointed as guardians in their wills. Ensuring the appointed guardians have enough financial resources to care for the minors. Confirming if there is a guardianship agreement between the deceased parents and the appointed guardians. At EFS, we have developed a cost-effective solution to address all four of these problems. Contact us […]
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Critical Illness vs Medical Aid
Do You Really Need Critical Illness Cover if You Already Have Medical Aid? You might think that having medical aid is enough, but let’s talk about critical illness cover and why it could still be essential for you. What is Critical Illness Cover? Critical illness cover, also known as severe illness or trauma cover, provides a tax-free lump sum if you’re diagnosed with a serious illness covered by your insurer. Thanks to medical advancements, more people […]
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Ensuring Your Legacy: Understanding Estate Liquidity and Securing Your Future
Estate liquidity is vital for ensuring that your estate can cover all financial obligations upon your passing. This includes debts, estate duties, taxes, and executor’s fees. Without adequate liquidity, the executor may be forced to sell assets at less-than-optimal prices, which could negatively impact your heirs. The best method to address a liquidity shortfall is life insurance payable to the estate. It is considered one of the most effective tools due to its ability to provide […]
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Understanding credit reports
WHAT THEY ARE AND WHY THEY MATTER A credit report provides a detailed overview of an individual’s credit history, encompassing their payment history, credit limits, and types of credit accounts. This document is crucial because it is used by lenders, landlords, and various other entities to assess creditworthiness and make decisions about extending credit or approving applications. For lenders, typically banks: Lenders rely on credit reports to gauge the likelihood of an individual repaying debt. This […]
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Life cover: How much is enough?
Life cover pays out tax-free in the event of the life insured’s death. At EFS we calculate how much life cover you need, considering the following factors: Your debt. We also recommend settling your spouse’s or partner’s debt. Master’s fees. Taxes such as capital gains tax, income tax and estate duty. Executor’s fees (currently a maximum of 3.5% plus VAT, 4.025% including VAT. Administration fees such as transfer costs on fixed property, bond cancellation costs, advertising, […]
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Lump sum disability cover
Lump sum disability insurance is a type of cover that provides a once-off payment if you become permanently disabled due to an accident, injury, or illness. Here’s how it works in simpler terms: Types of lump sum disability benefits Accelerated benefits: If you claim this benefit, it will reduce the life insurance cover you have on your policy. These are usually less expensive. Non-accelerated benefits: Claiming this benefit does not affect your life insurance cover. These […]
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