Jojata Financial Planning

Some good reading on the impact of war / conflict on stock markets (investments). Usually within 3 months, the markets return to the pre-war / conflict level, but it can take up to a year. Stay in the market, it’s not the time to panic.

What is the war doing to my portfolio? A look at the average number of days it took markets to recover after each conflict provides perspective to remember the bigger picture.

Some news from the Council for Medical Schemes.

Do you know whether your Medical Scheme is solvent and if it is properly governed?

: The CMS hereby announces that the curatorship placed on KeyHealth Medical Scheme Medical Scheme has been uplifted.

Read here: https://bit.ly/3LEMCMQ

We are experiencing volatility in the global markets due to the Russian invasion of / military exercise in Ukraine. Don't panic, stay in the market and ride this one out.

War and your wealth: How should your portfolio be structured to fight a war? It is important to focus on building well-diversified portfolios on a global scale.

Is your cholesterol higher than 5mmol/L? Your cholesterol qualifies as a PMB condition. Based on other health factors, and medication used, you may qualify for your medication, some blood tests and treatment being funded from your Chronic Benefits (Risk) and not Savings.

Speak to me for more information or visit the CMS’s website in the link below.

: Focus on Hyperlipidaemia

, also known as or , is one of the 26 included in the Prescribed Minimum Benefit ( ) regulations.

Read more: https://bit.ly/3haLQu0

Understanding Emergencies and Designated Service Providers (DSP’s) are critical components in being a happy medical scheme member. See the guidance given by the Council for Medical Schemes in the link below and talk to me about your medical scheme’s DSP’s

: Focus on DSPs & Emergencies

Designated Service Providers ( ) are healthcare providers that have agreements with to diagnose, treat and care for their members for conditions

Read more: https://bit.ly/34ZSSiz

Prescribed Minimum Benefits (PMB’s) are benefits for certain medical conditions which the Medical Schemes Act 131 of 1998 requires all medical schemes to cover, to ensure members have access to certain minimum health services. These conditions are Life-threatening emergency medical conditions; a defined set of 271 diagnoses; and 26 chronic conditions.

To protect the fund, schemes make use of the following mechanisms when allowing treatment for PMB’s:
- A condition must form part of the PMB list as indicated in the Medical Schemes Act. ICD-10 diagnosis codes are used to match conditions to the PMB list
- A condition must further meet the minimum clinical entry requirements as a PMB. This means that, although an ICD-10 code matches the code on the PMB list, it may still be declined as the seriousness (clinical need) of the condition does not meet the requirements to be a PMB
- Scheme Rules may determine that a Designated Service Provider (DSP) be used for PMB’s. These DSP’s may differ between options and whether a waiting period applies
- A Scheme may also indicate the Treatment Protocol (level of care / type of treatment) that may be applicable to a PMB

It is therefore clear that a PMB is not just the look-up of an ICD-10 code on a list and a Scheme needs to open their cheque book. It is the matching and approval of a condition meeting minimum clinical entry requirements and assigning a DSP and Treatment Plan for the condition. The key to getting a PMB approved is a proper clinical motivation by your Doctor working hand-in-hand with the Scheme.

You may contact me to assist with any PMB queries and to assist you with review / approval of your PMB's. To make an appointment visit www.jojata.co.za/schedule.html

Please visit the Council for Medical Schemes Website for more information on PMB's - https://www.medicalschemes.co.za/resources/pmb/

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JOJATA ​During 2006 I started in the Financial Services Industry and by 2009 I was the Managing Director of a large health insurance underwriting manager. In 2017 I decided to positively impact people’s...

This is a Rule of Thumb that I use everyday with my clients. I have adjusted it a slight bit (being less conservative for once in my life) - To determine the capital you need when retiring to provide an income, take your current monthly expenses, less debt repayments and minor children's school fees and costs, and multiply that by 12 (for a year's expenses), and a further 20 (to allow for a 5% drawdown).

Then find a good advisor to keep you on track in retirement.

Book an appointment with me at https://www.jojata.co.za/schedule.html for personalised advice.

Two rules of thumb as you prepare for retirement A simple calculation to determine your retirement needs.

An emotional task - getting all documents together for the Executor of an Estate.

The Life File is important. Other than just listing assets, insurance policies etc, please remember to include all usernames passwords (however trivial they may seem).

Then, take time to write those letters to your loved ones.

This is where a real financial advisor can make a difference. Speak to me if you need assistance.

Things to have handy in case you pass away Keep these documents safely in a folder and tell someone you can trust where it is kept.

Great article by Wits. If you were expected to do your own research, you would have the credentials. Now embrace the vaccine in the knowledge that, not all vaccines are created equal, but all vaccines are comprehensively tested before being rolled out.

Latest - Everything you need to know about vaccines — our only viable strategy for living with Covid-19 - Wits University Everything you need to know about vaccines — our only viable strategy for living with Covid-19 27 July 2021 - Lucy Allais, Shabir Madhi, Imraan Valodia, Alex van den Heever, Martin Veller and Francois Venter We are likely to keep being hit by further waves of this virus until at least all adults h...

Can you take the risk leaving your legacy in the State's control?

Contact me to help you with drafting a Will.

The far-reaching consequences of dying without a will Without a valid will, your estate will be distributed to your closest relatives in a pre-determined order which could result in family members unduly benefitting from your estate.

Remain vigilant with your information and finances. If it sounds to good to be true, it likely is.

Research the companies you deal with.

https://www.moneyweb.co.za/moneyweb-opinion/soapbox/be-aware-here-are-some-of-the-common-investment-scams/

Be aware: Here are some of the common investment scams Don't let yourself get caught.

A quick update on vaccines and another reason why people should be on medical aids.

I believe this is the future of healthcare in South Africa and it is the reality of a national / social health system - If you rely on the national / social health system (read NHI of the future), you will need to make use of nominated facilities; if you wish to have choice, you will need to have a medical aid (possibly in the form of private health or top-up insurance in NHI landscape).

Please speak to me about your healthcare needs and I can help you to have more choice in your healthcare.

No more walk-in vaccines at private sites if you don’t have medical aid – and maybe if you’re 80 https://www.businessinsider.co.za/trending/walk-in-vaccinations-are-now-limited-to-medical-aid-members-at-private-sites-2021-6

No more walk-in vaccines at private sites if you don’t have medical aid – and maybe if you’re 80 The state won't pay for uninsured people who arrive at private sites without an EVDS appointment – unless they are over 80, and there aren't too many of them.

Interesting reading with facts that can be distorted and manipulated.

Complaints can be avoided by understanding what is covered by your insurer, eg an expectation being created and then delivery on that expectation.

I am a firm believer in making use of a broker and not going direct or working via a call centre. Not only because I am a broker. A broker understands your position better than a call centre as the value of an informal chat during a broker/client realtionship is highly undervalued - by chatting informally to my clients I learn more than from any needs analysis.

The most complained-about short-term insurers in South Africa The office of the Ombudsman for Short-term Insurance (OSTI) has published its annual report for 2020, showing which insurance companies in South Africa drew the most complaints.

Discovery Health Increase 5.9% across all plans from 1 July 2021. Contact me for information or to make changes to plans.

Most people see their financial planning solutions (eg life cover, investments) as seperate to their estate planning solutions (eg Last Will and Testament, Living Will). When my clients then see the value of a comprehensive Financial Plan including Estate Planning, Risk Planninng and Investment Planning, they oftentimes neglect to include all role-players (eg spouses, business partners).

There is a lot of value to have one Financial Advisor taking care of your family affairs across all areas (health, life cover, investments and estate planning). Don't be caught out after death as a result of a poor financial plan.

The accrual system: Death of a spouse Many couples fail to consider how the accrual calculation impacts their estate plan, often with devastating consequences.

Thinking of buying a property. Some bullet points on questions to ask. Don't assume anything - ask and get a response and if question is material, get the response in writing. The chandelier might not be included!

Rather spend a bit more upfront by using a professional agent to represent you, than crying later about things you "forgot to ask" / "didn't think of".

18 important questions every property buyer should ask 18 questions to ask your estate agent that will save you a great deal of heartache and money in the long run.

An article by Sanlam explaining the role of Money Market Funds in your investment portfolio. Understanding your time horison, risk capacity and risk appetite is always the starting point for any investment.

The role of a money market fund in your overall portfolio Cash deposits at banks increased substantially during 2020 as clients built up cash reserves, despite low interest rates. The reasons for this are two-fold – those who held on to their jobs spent less on petrol and entertainment costs. In addition, the reality of the pandemic drove home the need f...

Investment specialists keep on repeating "time in the market" is more important than "timing the market". A lot of people panicked March 2020 with the markets plumetting and took money offshore. Read the article to see the error of their ways.

By no means am I advocating to keep money in South Africa nor am I advocating to go offshore. What I am highlighting is the need to research a plan and stick with YOUR long term plan and not somebody else's flavour of the month. If you do not have intimate knowledge of markets and investing, get a good financial advisor to assist you with YOUR plan.

R1 million invested in these different options a year ago would be worth this much today After the rand plummeted and blew out to more than R19 to the dollar early last year, there has been a lot of debate around taking more investments offshore and easing restrictions of offshore investing, note Yuvern Dokie, senior technical investment specialist, and John Anderson, executive, investm...

Earlier this week I mentioned Inflation Risk. What is Inflation and why is it called the Silent Killer? Read on - Inflation: The silent killer https://bit.ly/3nAr1dW

Inflation: The silent killer To understand inflation, one needs to understand the implication of what, for example, 4% inflation actually means, and the effect it has on your spending power. Many people refer to the current inflation rate without understanding the implication it has in real life.

I understand the need for Designated Service Providers (DSP's) used by Medical Schemes - it ensures that costs are kept reasonable while appropriate level of care is provided.

What I never understood was why Medical Schemes would not pay if a DSP were not used or, when they pay, sometimes they pay less than they would have paid to a DSP.

Government has published a notice in the Gazette declaring this practice undesirable. More detail and regulations to follow in the next 6 months.

For further reading, read the notice in the Government Gazette -https://www.gov.za/sites/default/files/gcis_document/202104/44469gen214.pdf

www.gov.za

A question I get a lot - how do I double my investment. Reality is to stay in the market (time in the market) rather than trying to pick the right funds / shares and moving around (timing the market). Pick a time horison, determine your willingness and ability to take risk and then decide on a fund manager and fund that aligns with your risk profile (time, ability to take risk and risk appetite). This is part of what I can do for you - give you guidance and advice on the right options.

I have more than R5m to invest. How can I double it? If you want to enjoy higher returns in any investment, you will need to have equity exposure.

Absa Money Market Fund closes mid-year. If you have "saved" / "parked" your money in the Absa Money Market Fund, do you know where to invest your money when the fund closes?

Simply transferring your money to a bank account exposes you to inflation risk - the risk that your money will grow at a rate lower than inflation which means you will be able to buy less with three money over time.

Speak to me about alternative, low-risk inflation-beating options while keeping your money liquid (accessible within 7 days).

Absa Money Market Fund closure exposes common investor misunderstandings Of purpose and risk.