Reader, our theme for the year is that you are silver lining around the dark clouds that looms in South Africa. This will become true if you take responsibility for your financial future, develop a vision of what direction you want to take, not procrastinate, make decisions and work hard to implement your plans.
A win-mentality and the willpower to take action is necessary to create wealth. Yolanda Strydom is
such a person and has won our latest prize. Congratulations Yolanda!
Don't be discouraged if you did not won Reader. There's another competition this month. See the detail at the end of the newsletter. Take action now and you may be the next winner!
Although there are much to worry about in the modern world we live in, negativity is not the answer. The answer is to implement the nine principles for creating wealth. This month, we will look at the ninth principle namely to protect yourself against risks. We asked an expert in the field, Barend Fourie, to share his thoughts with us.
NINTH PRINCIPLE FOR CREATING WEALTH IN PRACTICE
South Africa is currently one of
the countries in the world with the highest prevalence of motor vehicle accidents in the world. We are also one of the countries with the highest crime statistics in the world. As a result of this the need for adequate short term insurance is of the utmost importance to most of us.
South African households also spends large amounts monthly in these short term insurance premiums as well as on securing their assets.
But possibly your biggest asset - the ability to earn an income - is sometimes not as well cared for as the tangible assets mentioned above. Your cash flow may come under severe strain while recovering from an serious injury or when being involved in a serious car accident.
Recent amendments to the Road Accident Fund Act have highlighted the need to review the cover people have for death, disability or serious injuries as result of accidents. According to the Road Accident Fund Amendment Act, the maximum amount a person can claim in respect of loss of income as a result of a road accident is capped at R160 000 per annum. This is also applicable to loss of
income from the
breadwinner in a road accident.
According to David Kapelus, director of Deneys Reitz Attorneys Inc. a very important aspect is that a person's common law right to claim any excess damages from the negligent party seems to be abolished by the above act referred to. This can lead to serious cash flow problems for persons used to higher income levels in the event of road accidents.
The crime statistics released by the South African Police services reflected that in Gauteng alone more than 116 000 cases of murder, attempted murder and serious assault cases review reported for the year April to March 2010.
Fortunately Sanlam Life offers a product aimed at addressing this problem, namely the Sanlam Life Accident Cover. This product provides cover for death, disability and serious accident as a result of an
accident. Cover is not
only limited to road accidents, but is in respect of any accident. | The most important types of cover to consider in this regard will be disability cover and injury cover. The cost involved in these type of injuries are normally higher in
the event of disability, for example to change your property to be more wheel chair-friendly after such an injury. Also the recovery period after
contracting a serious injury may lead to cash flow problems in his small enterprise.
BUDGET SPEECH Mr. Pravin Gordhan delivered his budget speech and one of the main issues was job creation. Our standpoint is that Government can create an environment were jobs can be created, but that jobs must be created by
private enterprise. In any case, you can download the speech
here.
WELCOME TO NEW BROKERS! We would like to welcome the following brokers:
Barend Fourie has been in the industry for 40 years. He has been giving financial advice directly to clients for the last eight years. His expertise comprises: life, disability, retirement and investment planning.
Chris Gerber is the owner of Chris Gerber Financial services in Pretoria. He is in possession of a post graduate diploma in financial planning.
SEAN ZONJEE Sean Zonjee is a financial advisor and is situated in Pretoria. In addition to insurance advice, he also delivers debt counseling.
WIN R100! A lucky reader can win R100 by forwarding this message to a friend. The R100 can be yours if you act promptly Reader! Forward the message as soon as possible to as many as possible friends and increase your chance of winning.
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