In partnership with Morningstar: Did you know, that if you start saving only a small amount, early in life, it can lead to a larger savings pot than if you were to save a large amount much later in life? Sounds too good to be true? That’s exactly why compound interest is known as the eighth wonder of the world.
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In partnership with Morningstar: Naspers has for long been one of the biggest drivers of investors returns as it was the largest company on the index and one of the best performing. We have seen the Naspers share price go from an initial listing price of R47.50 to gaining momentum and being priced over R3 500 per share at its peak in February 2021. It therefore comes as no surprise that Naspers/Prosus frequently tends to feature in the top 10 holdings of numerous local funds and even a few international funds. In partnership with Morningstar: The future is unknowable, so the best we can do is to address it in terms of probability and preparation. In assessing probability, however, people are often driven by bias and emotion, emphasizing the positive at one moment and the negative at another. That narrow emphasis is likely to be reflected in the rapid changes in price of investments. Over-emphasis on optimism or pessimism leads to price volatility, which is part of being an investor, and enduring volatility is a price we pay for reaching our goals. In partnership with Morningstar: In the words of David Bergmann, “the tax tail should never wag the investment dog”. With that being said, it definitely won’t hurt to know and understand how a Retirement Annuity (RA) can minimise the amount of tax you pay and keep more of your hard-earned cash in your own pocket. On the 3rd of August, I got a text message telling me R49,432.31 has been paid into my bank account. How did that happen? And would you like to get it as well? Let's find out!
Hi, Uncle Kevin here. If you have not subscribed to my YouTube channel, please subscribe and click that notification bell, to be notified of my new episodes on personal finance. So in the early morning of the 3rd August 2021, this text message came to my iPhone at 2:48am: Congratulations, your Discovery Life Health Integrator Payback benefit of R49,423.31 that rewards you for looking after your health with Vitality has been released successfully. Later that day, at 9:51am, this text message came to my iPhone: Payment for your Discovery Life policy Health Integrator PayBack for R49,432.31 has been made. It will show in your account in the next four working days. Then I checked my FNB bank account, and indeed I have received this money into my bank account! I was ecstatic. This is a lovely bonus to receive. So why Discovery Life pays me this bonus? It relates to my Discovery Life policy. I took up my Discovery Life policy with my then broker Jose Afonso, in 2003. And I have been paying for it since. How a Discovery Life policy works is, if you are a Discovery Health member, and a Vitality member, you can get your Discovery Life policy Health integrated, to get a discounted premium, as well as Health Integrator PayBacks. With my policy, I receive such paybacks every five years. It is based on my Health claims, or medical aid claims, as well as my Vitality status every year. The lower the medical aid claims, and the higher the Vitality status, the higher the percentage of life insurance premiums is paid back to me. Discovery Life calculates the percentage of payback based on medical aid claims and Vitality status every year, then aggregate over five years, to pay me the payback every five years. Since I have been good at keeping medical aid claims low and maintaining Vitality diamond status, the highest Vitality status you can achieve on Vitality, I get up to 50% of my life insurance premiums back. So essentially I only pay half price for my life insurance benefits. Sounds good? So what do you need to do in order to get 50% of your life insurance premiums back in bonuses? Number 1, you must be a Discovery Health member. Number 2, you must activate Vitality and maintain your Vitality membership. Number 3, you must sign up a Discovery Life policy through a financial advisor, have it Health integrated to enjoy a discounted premium and Health Integrator Payback. To further enhance your payback, open a Discovery Bank account. From time to time, Discovery Life also runs special offers to give you more payback, so watch out for these. Number 4, stay healthy, engage with Vitality and improve your health. You should work to reach Vitality diamond status and stay a diamond member. If you do step 4 consistently, as part of your lifestyle, then you will reap the best rewards from the Discovery ecosystem and a Discovery Life policy. It is important that you understand how Vitality works, how to get Vitality points, so you can get to the highest diamond level as soon as possible. Vitality rules change all the time, at least annually, so it is important to know the changes and play the game to get your points. Vitality does make it harder and harder every year for you to get points, only recently I found to my dismay that 5,000 steps a day can only accumulate 1,000 points a year, not great as I and my wife need to get 100,000 points this year to maintain our diamond status! If you take out a new DIscovery Life policy, you can choose to have Annual PayBack, whereby you get an amount paid back to you annually, then an additional amount every five years. You can also select the Double PayBack option, where you choose to receive your PayBacks five years later and double your payback amount. So if you have or aspire to have a healthy lifestyle, eat healthy, exercise regularly, keep fit, like technology and gadgets, and like a challenge, Vitality is for you, Discovery Life is for you, and you are well on your way to get the best rewards and paybacks. So who is Discovery Life not for? If you do not like to live healthily, you do not watch what you eat, you don't exercise, you don't like to keep up with technology and gadgets, you don't like the idea of working hard to get something back, keeping up with all the changes of the Vitality programme, or you have many medical aid claims, then Discovery Life is probably not suitable for you. If you have any questions or comments, please email service@daberistic.com. In partnership with Morningstar: This document has been created to highlight the most important issues facing investors, share insights from our current research, and help you make better investment decisions as we enter 2022. It has been compiled by our investment leaders and draws on the work of our global team. |
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