Rolling back lockdown - we eagerly await Level 3
Isn’t it good news that JUST before exhausting all the banana bread and home-brewed pineapple beer recipes on Social Media and JUST before you run completely out of excuses to tackle those dreaded DIY home maintenance projects, the Good President decided to send (most of) us back to work, as of the 1st of June, 2020?
Well…
This is bittersweet. After all, no-one will be left unaffected by this crisis. Some of us have or will lose loved ones to the Coronavirus. Some have lost part or all of our income. Some have lost business opportunities and will have to find new ways of doing business. All of us are scared as none of us really know exactly what the future holds. We hope that the blogs that we have compiled will assist you in contemplating the way forward.
The good news is you are not alone
As always, please feel free to contact us so that we can guide you through accessing the support measures put in place by Government. These may mean tax relief or business and UIF support. If you are an entrepreneur, let us assist you to plan the way forward for your business. As much as the challenges of surviving are real for all of us, now is also the time to think strategically. Think ahead, so that you can move from merely reacting to acting decisively.
Let us help you figure out how to take advantage of the fact that the Reserve Bank has dropped the repo rate again – the third time this year. The Repo rate is now 3.75%. This is the rate at which banks lend each other money. The Prime rate is currently 7.25%. This is the rate at which banks lend money to their best clients. In effect, this means that you will save R2 083.33 for each R1 million you are in debt… if you are one of the preferred clients.
Remember, this is an emergency measure instituted by the Government to assist people during this crisis period. For many, this may provide welcome relief and make survival possible. However, some people may see this, as well as the payment holidays various financial institutions are offering as an invitation to spend. It comes down to priorities and circumstances. If it is at all possible, we advocate that you instruct the bank to keep the repayment at the same amount as before the rate cut was announced. This will shorten the term of your loan by a few years.
Clever clients may wonder if this is not a good time to lock down their interest rate on their bond. This may indeed be a good option, though more complex than it seems on the surface. We suggest that you check what rate the bank will charge you. Contact the office before agreeing to this though, in case there are other options and considerations to explore.
NFS - Back to normal?
We are happy to say that the staff are back at the office and want to thank them for their efforts whilst working remotely. We are proud of the fact that we have been able to continue offering the best, uninterrupted service to you, even during the lockdown. Due to governmental directives that states that people over 60 should work from home where possible, Nico will still be working remotely. All services will continue to be offered as before and during the lockdown period. The difference is only that all meetings will continue to be conducted via Zoom, Skype or WhatsApp. Our ‘regular’ Telkom phone number is back in use as there is now someone at the office to answer it!
Since we take the health and wellbeing of our clients seriously, we will also, for the foreseeable future, desist from having any meetings at the office, even as we make sure that we are compliant with all the health and safety measures required by law.
Remember, although we are a phone call away, WhatsApp is even better! Send us a short message with your name and the reason for reaching out to us in a WhatsApp message. This makes it possible for Nico to respond at the earliest possible moment and allows him to be prepared with any information or documentation he may need to answer your concerns.
Don’t throw caution to the wind!
Even though we are moving away from the ‘hard lockdown’ of level 5 and 4, the crisis is not over. Things may become more difficult, before it gets better. You are important to us – please take care of yourself. Please practice good physical hygiene – wash your hands, wear your masks – but also mental hygiene – check the sources of your information before acting on it.
Should you receive alarming information that seems to indicate the need for urgent action concerning your finances, rather contact us immediately. Unfortunately, there are many out there who would gladly prey on your fears. It may be difficult to see the difference between a fake and real communication from your bank or investment agency. We are here for you – rather be safe than sorry.
