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In today’s complex financial landscape, business owners need more than just insurance policies. They need the comprehensive, unbiased advice that can only come from an Independent Financial Adviser (IFA) to create a holistic financial plan Unbiased advice vs. product sales It’s important to understand the distinction between a ‘tied agent’ and an IFA. A tied agent affiliated with a specific company, can only sell that company’s products, and cannot charge for advice. In contrast, an IFA can offer advice on a fee basis, without being obligated to sell any particular product in order to earn an income. This difference is crucial. Imagine visiting a doctor who is paid based on the medication they prescribe, rather than the diagnosis they provide. You would likely receive a lot of unnecessary prescriptions. In the same vein, a tied agent might push products that earn them commission, while an IFA would focus on diagnosing your financial needs and providing unbiased advice. In the case of a client who is concerned about saving for their retirement but who has a high level of interest-bearing debt, for example, an IFA would advise paying the debt off before investing in a retirement plan, even if it means earning less commission in the short-term. However, when the time is right to discuss investment products, IFAs are not limited to selling the products of a single company; they can mix and match products from various providers to create a financial plan that is tailored to individual needs. IFAs can also manage existing investments for both the business and its owner without incurring unnecessary costs or tax penalties. What is the difference between an IFA and a CFP®? An IFA sees a holistic view of a business, often – and ideally – acting as the conductor of the financial orchestra, co-ordinating with accountants, attorneys, bankers, and even the business’ risk and audit resources, to ensure that all aspects are in harmony. Certified Financial …

Investing in an offshore retirement fund is one way of growing your wealth in a stable economy over the longer term, or even gaining residency in a foreign country. However, for South Africans, this scenario presents as many challenges as it does opportunities, and should only be considered after consulting with a financial adviser and tax expert. When you invest offshore directly, whether in a retirement fund or another funding vehicle, the tax aspects can be tricky to understand and a number of factors must be considered. If you fall foul of the domicile-specific tax rules, you could end up losing a large portion of your investment when you retire and start to withdraw funds, or during the inheritance process after your passing. And, if it’s not set up properly, your investment could also expose you to more taxation. With regards to pension funds in South Africa, there are three basic scenarios, and two of them preclude moving one’s contributions into an offshore component to enable financial emigration or offshore retirement. The first scenario is a membership in an employer-sponsored retirement fund. In some circumstances, an employer will create a free-standing fund and then appoint a board of trustees to make fund-related decisions. The board of trustees makes a variety of decisions, including hiring a fund administrator, an investment and retirement fund consultant, and an asset manager. These types of funds have fund-specific rules, and anyone who joins the fund (via employment) must follow them, including the limited portfolios in which you can invest. The underlying investment portfolios might have some offshore exposure that offers some form of financial security. In the second scenario, where contributions are made in someone’s personal capacity into an ‘umbrella’ fund, it is typically the fund’s trustees that determine where the contributions are invested. At NMG Benefits, when we look at the asset allocation for a retirement fund, we …

According to Just Property, 295,989 residential properties changed hands in South Africa during 2023. If you include the old owners moving out and the new owners moving in, that’s 591,978 households that were potentially uninsured for at least a portion of their move. King Price Insurance’s partner of client experience Wynand van Vuuren says that it’s easy to forget about the insurance implications during the stress of moving house, but keeping your insurance up to date should be at the top of your to-do list. Here are Van Vuuren’s top insurance tips for consumers who’re planning a move: Let your insurer know in advance that you’ll be moving so that they can update your address and check whether your premium will be impacted. “Aspects like the security at your new home, as well as its proximity to open pieces of land, building sites and informal settlements, and more, could change the premium you’re currently paying for both your buildings and home contents.” Talking to your insurer upfront also means they’ll be able to cancel the cover at your old home and switch it to your new home-sweet-home so there’s no double cover and no gap in cover. Use a professional moving company that has insurance in place to cover your home contents while they’re in transit. Accidents happen, and so does theft and, unfortunately, your home contents aren’t covered for either if they’re on the back of a private bakkie or trailer (or in any privately-owned vehicle) en route to your new home. When you’re getting quotes from movers, ask for proof of this insurance. If you move your things from one home to another in stages, you should remember to insure them at both addresses. You can speak to your insurer regularly and adjust the insured values at each address as you go, to ensure that your home contents are always covered, and never over- or under-insured at either address. Packing is the perfect time to update your home contents inventory. “Many people purge while …

Agriculture in South Africa is growing. The primary agricultural sector has increased by an average of 7.5% per year since 2008, outpacing the total economy, which grew by 6.6% on average per year over the same period. Despite its relatively small share of the total GDP, primary agriculture is a significant provider of employment, and a major earner of foreign exchange. The estimated value of imports during 2022 increased by 17.2% from 2021, while the estimated value of exports showed an increase of 18.2% in the year. But the sector remains challenged by infrastructural weaknesses that result in loadshedding and poor road quality, the effects of climate change, animal epidemics, and the same macroeconomic factors that are affecting all industries in South Africa. The challenge, says Kobus Stapelberg, partner in the agri division at King Price Insurance, lies in anticipating and managing risks better, to keep premiums down while keeping livestock, crops, machinery, and other assets covered properly. ‘Pay as you go’ for farmers Since King Price entered the agri sector in 2018, it has implemented future-forward thinking to benefit farmers, starting with their industry-first ‘pay as you farm’ agri insurance product that offers farmers comprehensive cover for their agri vehicles all year round, linked to an annual rebate based on the time that the vehicles are actually used. Stapelberg says that ‘pay as you farm’, which is offered in partnership with FarmSpace and Africa Farmers Network, is designed to help farmers save on their insurance premiums, lower their capital risk and maximise their profits. Data is the future While keeping their ears to the ground at farmers days, festivals, auctions, producers’ associations, and the like, to hear directly from farmers what they want and need, the insurer also works closely with actuaries to properly understand the available data in order to mitigate risk and determine best pricing. “We’ve developed a motor rating …

More than half a million South Africans bought new cars during 2023. This is despite ever-increasing interest and inflation rates, and soaring cost of living, fuel and car prices. And yet, even with around a million road accidents being reported annually, only 35% of South African motorists have insurance. This means that, if you’re unlucky enough to be in an accident, there’s a high probability you won’t be able to claim against the other driver for damage to your car – even if they are at fault. If you cause an accident and you’re one of the uninsured drivers, you’ll be personally liable for all of your damage, as well as any third-party damages. So, given that buying a new car is an expensive exercise, and insuring it is an essential additional cost, how do you ensure that the car you buy suits your needs and your budget in the long run? Wynand van Vuuren, client experience partner at King Price Insurance, shares some tips: Ask the right questions: If you’re financing your new car, shop around for the best interest rate. Figure out whether you can afford the repayments if the interest rate continues to climb. Ask for a breakdown of how much interest you’ll save if you pay the car off sooner. Check whether you can fix the interest rate for the duration of the finance period. Factor in the insurance: If your car is financed, you must have comprehensive insurance for it. You won’t be able to drive it off the showroom floor without having proof that it’s insured. Of course, the other good reason for having comprehensive insurance is so that you can claim for loss and damage if your car is stolen or hi-jacked, damaged or written-off in an accident, or gets dented by hail, among other things. Check the warranty and maintenance contracts: Most new cars come with a manufacturer’s warranty or maintenance contract, which cover the cost of regular services and parts that fail to work as they should. If you’re buying a car without these contracts, you’ll …

The recent storm and flood damage in KwaZulu-Natal is estimated to be R2.5 billion and with more heavy weather warnings on the way, Minister of Cooperative Governance and Traditional Affairs Thembi Nkadimeng is calling for a state of disaster in the province. While major infrastructure like roads, bridges, railways, and schools has sustained massive damage, smaller projects are also affected, and contractors are feeling the strain. George Parrott, commercial business partner at King Price Insurance, says that a mix of business and engineering insurance products is essential if contractors wish to protect themselves financially from the effects of extreme weather conditions. When it comes to weather-related loss and damage to construction projects, Parrott identifies two critical risk areas that contractors should insure as a starting point: Contract works insurance: Following an event like a storm or flood, there will inevitably be lost time on site, but contract works insurance ensures that contractors won’t have to foot the bill for the material costs needed to re-instate projects to the point they were at before loss or damage that constitutes a valid claim. The contract sites, as well as the surrounding areas that contractors may need to access and which are under their control, are covered while the work is in progress. As soon as a project is completed, the building must be covered under a business insurance policy. It’s important to note that contract works cover ideally needs to be in place before a project starts. While an insurer may agree to instate cover during a project, any claim could become complicated with regards to the merits of the loss, the claim amount, and which parts of the project fall within the scope of cover. Liability insurance: This covers a contractor’s legal responsibility for injury or damage to third parties or their assets that arise from their construction project. After an event, like a severe storm, liability cover …

January is typically when consumers review their budgets and try to make them stretch even further. Many people don’t include their insurance in this exercise – but they really should because they could end up saving money every month. King Price’s client experience partner, Wynand van Vuuren, says that reviewing your insurance is an investment in your financial future, especially now, when times are tough. Here are his top tips for helping you make sure your insurance covers your risks on a tight budget. Combine your policies Insurers love clients who have more than one policy with them. So, if you cover your buildings, home contents and a car, for example, you’ll probably pay less. You could also be eligible for a discount if you insure multiple cars – up to 20%, in some cases. Beef up your security You could potentially decrease your monthly premium by increasing your security. Ask your insurer whether installing a tracking device would reduce your car premium, or whether an electric fence and an alarm system linked to armed response would reduce your buildings or home contents premium. If you live in a secure estate, check whether there’s a home contents option that excludes theft but still covers you for things like acts of nature and malicious damage. Update your details If your personal circumstances have changed in any way, it’s critical that you let your insurer know, as these details could impact your premium. This includes things like updating the addresses for where your car is parked, both during the day and at night, if you’re driving more or less than previously, and whether you’ve gotten married. Check that you’re insuring the right things Van Vuuren advises consumers to check their policy schedule to see whether they’re still insuring things they don’t own anymore. At the same time though, he cautions that you should remember to add any new big-ticket items you’ve bought, and to ensure that you’re covering your buildings, home …

Now is the time to reflect on your financial state and set meaningful goals for the year to come. Whether you are aiming to build an emergency fund, pay off debt, or invest for the future, establishing clear financial objectives is crucial to achieving long-term stability and success. Stian De Witt, executive head of financial planning at NMG Benefits provides a comprehensive guide to help set up a path to financial success. Reflect on the past year Before embarking on setting new financial goals, take a moment to reflect on the previous year and analyse your financial successes and challenges. Did you manage to stick to your budget, reduce unnecessary expenses, or increase your savings? Understanding your past financial behaviour can provide valuable insights for crafting realistic and achievable goals. Define your priorities Consider your financial priorities and aspirations. Are you focused on building an emergency fund, paying off high-interest debt, saving for a major purchase, or investing for long-term goals like retirement? Clearly defining your priorities will help you allocate your resources and efforts effectively. It's essential to establish both short-term and long-term goals, ensuring a balanced approach to your financial planning. Set goals The specific, measurable, achievable, relevant, and time-bound (SMART) criteria provide a framework for setting goals that are clear, tangible, and attainable. Break down your financial objectives into specific actions with measurable outcomes. For example, instead of a vague goal like "save more money," set a specific target such as "save R500 per month for an emergency fund." Making your goals achievable and time-bound adds accountability, making it easier to track your progress and celebrate your successes along the way. Pay off debt If you have outstanding debts, prioritise creating a plan for repayment. Start by listing all your debts, including credit cards, loans, and other …