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GTC Press Release

Separate Wills should be planned together

It is National Wills Week next week so now is the time to ensure your estate planning is in order. There is a growing trend of married or partnered couples to draft separate wills, as opposed to a joint will. Whilst this enshrines each party’s individual wishes, it may result in unintentional errors creeping into wills, leading to outcomes that the deceased had not intended. According to Jeremy Woods, Senior Consultant GTC Fiduciary Services, one of the main reasons for these errors is the entrenched assumptions that influence much of our thinking about wills and estates, together with a lack of sufficient provision within the will for outcomes which differ from these naïve suppositions. “The assumption that the younger spouse – often the woman – will die after the older one still forms the basis of many separate wills. Whilst...
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Soon-to-be-wed couples should pay equal attention to both wedding contracts and the big day!

The near arrival of Spring – and wedding season – are likely to fill soon-to-be wed couples with excitement about their impending nuptials, and while it is undoubtedly good to plan the details of the celebration, it is also important for partners to pay equal attention to the details of their marriage contracts. Jeremy Woods, Senior Consultant Fiduciary Services, at leading financial advisory firm GTC, urges individuals to carefully consider their needs and to review their contracts before signing. “This has many consequences for your life together, and these may even continue after death has parted you,” he says.“It is entirely natural for couples to focus on making their wedding day as special as possible. However, it also is a reality that the majority of couples focus far too little attention on the less romantic aspects of determining an appropriate...
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Employers and medical aid members can exercise control over their medical aid increases by being more active

“Employers looking to assist employees in increasing their disposable income, would do well to focus more attention on increasing employees’ physical activity levels, thereby reducing absenteeism, decreasing the risk of staff illness, improving productivity and overall staff morale,” says Jill Larkan, Head: Healthcare Consulting. “An efficient service component of most medical aids, available to all members is the ‘wellness programme’. Members engaged in such schemes are generally proven to be healthier,” says Larkan.“Healthier members cost the medical aids less and – in turn – medical aids then also become ‘healthier’. Consequently, healthier medical aids have lower annual increases, resulting in members having more disposable income.” Larkan believes an active lifestyle is also a good way for people to decrease their medical bills, and in the long run, their annual medical aid increases. “It is abundantly clear from research by medical...
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Giving your child a quality education requires dedicated saving from when they are born

Giving your child a quality education requires dedicated saving from when they are born July is national savings month – a good time to seriously consider future needs Given the ever-soaring costs of tertiary education that have recently been widely publicised, parents need to consider this inevitability and should be prepared to budget for the pre-funding of future school education, as this expenditure continues to meaningfully erode the monthly income of an increasing number of South African households. Andrew Edwards, Wealth Management Consultant at leading financial advisory firm GTC, believes a growing number of parents are faced with steeper than expected costs related to primary and secondary education, whilst not having specifically saved for this priority expense.“It should be a well-known fact that the cost of education – at public as well as private schools – is one of the biggest...
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Pension fund defaults should not detract from individual retirement planning for members

Pension fund defaults should not detract from individual retirement planning for members The introduction of default in-fund options within retirement funds is a positive step towards ensuring that it costs less for pension fund members to transition into their financial retirement products, though this should not detract from holistic retirement planning – an element which is still largely lacking for millions of South Africans. Sabir Bacus, Employee Benefits Consultant at leading financial advisory firm GTC, believes that while default regulations are likely to help many fund members, the industry, trustees and employers should actively promote and encourage members to take a real interest in their retirement fund and not simply revert to default options as the solution to their retirement needs. The National Treasury has introduced regulations – which must be implemented across all funds by 1 March 2019 –...
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SA businesses reluctant to insure against cyber-attacks, despite past incidents – GTC Risk Solutions

South African companies have suffered several cyber-crime incidents over the past few years, yet local businesses are still reluctant to insure against this risk Roy Wright, Head of Risk Solutions at GTC, believes there are two primary reasons for this:  “Many businesses are aware of cyber-crime, but they – especially small and medium enterprises (SMEs) – erroneously believe their organisations will not be targeted. There is a perception that this risk is more prominent in large businesses or those operating within developed markets, whilst other companies tend to believe their IT security systems are sufficiently robust to either prevent or recover easily from an attack, and therefore do not see the need for specific cyber insurance,” he says.   “Both these arguments are flawed, especially when one considers the number of cyber-crime incidents that have occurred in South Africa recently.”...
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GTC Healthcare Consulting launches inaugural Gap Cover Survey 2018 to rank and categorise all known providers in SA

First-ever ranking of medical Gap cover providers in SA reveals that cover is confusing for consumers  Sanlam and Absa have emerged as the top-ranked medical Top-up – often referred to as ‘Gap’ cover – providers in South Africa, according to the first ever ranking of these product providers, conducted by leading wealth and advisory firm GTC. Sanlam was ranked as the leading provider of Gap cover for under 60-year olds, whilst Absa topped the list for provision to older individuals, in the inaugural 2018 GTC Gap cover survey which was launched at a media roundtable event in Cape Town this morning. Following on the popularity of the GTC annual medical aid survey – which has come to serve as a useful tool for companies, consumers and advisors in analysing and choosing appropriate medical aid plans – GTC aimed to create...
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Committing to a better financial future is easier than you think

As many people’s enthusiasm for their recently adopted New Year’s resolutions wanes, Martin Wagenaar, wealth management consultant at leading financial advisory firm GTC, reminds us of the seriousness of adhering to newly adopted financial goals and ambitions. He also illustrates how this is one New Year’s resolution which can be effected sustainably. “It is interesting how people resolve to improve their lives at the start of a fresh year, but their proposed changes very rarely extend to their financial future. Just as we convince ourselves that it is never too late to start losing weight, become fitter or learn a new skill, it is also never too late to revise and achieve realistic financial goals,” says Wagenaar. One of the most common myths about financial planning is that it is reserved for the wealthy. “The truth is that everyone needs...
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No Last Will as the New Year kicks in? No way!

Death without a Will creates unnecessary complications for loved ones. Dying without carefully preparing a Last Will and Testament which specifically outlines who should inherit your belongings, causes unnecessary distress at an already difficult time for your family and friends.  The absence of a Will also means that the law will decide who gets what, and how much. Jeremy Woods, Manager, Fiduciary Services at GTC’s Johannesburg offices, urges individuals to make preparing a Last Will and Testament one of their New Year’s resolutions for 2018, to avoid any undue stress and confusion. “The Act according to South African law which controls how your assets are transferred is the Intestate Succession Act, 81 of 1987,” says Woods. “If a person dies without a Will in SA, it means that the deceased has died ‘intestate’.” He cautions that if an individual dies...
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Growth of passive funds encouraging, but not always appropriate for local investors

The growth of index-tracking funds globally and in South Africa has been an encouraging development for the investment industry, but this does not mean investors should discard traditional actively managed funds. Clive Eggers, Head – Investment Analytics at leading wealth and financial advisory firm GTC, believes both styles have a critical role to play in the investment landscape. “Over the past decade, passive investments have become increasingly popular with local investors, to the extent that some are opting to remove active funds from their portfolios completely.  We do not encourage such drastic action,” he cautions.  “There is growing consensus in the professional investment world that a debate arguing the merits of ‘active versus passive’ investing is not constructive. We believe both styles offer valuable diversity within a portfolio.” Developed markets such as the US and UK have had access to...
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