Wax on… Wax…. Sorry, Vat on… Vat off. Vat on… Vat off. …for those of us old enough to have watched the Karate Kid…

Taking a toll on the GNU, this is. Parties desperately seeking stability on weak legs.

A new US ambassador is a delicate point right now too. Gary Player or Charlize Theron might be good candidates.

A fund manager from Ninety One recently gave a good Trump statement: ‘a rational decision made today based on irrational information, could prove to be a very irrational decision tomorrow.’ He went on to say that ‘In markets, the best days tend to occur around the worst days.’ What he’s implying, is that there are buying opportunities.

And so everyone and the world is navigating the chaos. While we all spend our money in exactly the same places and feel nervous to invest because we want markets to become expensive again first. At least there is entertainment every day.

I said last week that this week I will write about what I suggest doing with money that you receive that you would never have had. My dread disease claim being one example, inheritance being another.

There are ‘ifs’ and ‘buts’ and exceptions to my suggestions, one of them being people who have so much wealth and income already that they don’t need a plan like these. But my basic principle is not to lose the money as a whole, as an entity of capital. You want to preserve this money you received and make it count in your life.

I usually say these funds must either be used to get rid of debt, or to provide income, either now or in the future. If we use it to reduce debt, then we need to continue paying the same amount we were paying each month into that debt. And when you settle the debt earlier than you would have, keep saving the same amount each month to build some savings wealth up again.

A possibly better option in my mind, is to put the funds into an income bearing investment and use the income to pay into the debt. In this way, when the debt is settled, you still have the vehicle that provided that income. Here my point of do not lose the money as a whole is now illustrated. You can continue to use the income after the debt is gone for whatever you want: a new car, a holiday, for saving, for income in retirement, to re-do your kitchen… but, the vehicle providing the income, the money you would never have had, has not been lost.

If the source of money is going to be inheriting a living annuity from your parents or some other family member, then do not cash it out. Firstly, tax is paid on the lump sum coming out – but not if preserved – and secondly, you will probably spend the money in a way that will result in you no longer have the money as a whole. The annuity can be divided between the number of inheriting people/children, who will then each have their share continue in such an annuity investment. They can receive the 2.5% or 4% – or whatever percentage of income – and spend it how they want: on funding debt, on school fees, or payments for a new car, or partying on Saturday night… But again, the source of income is not lost. In this way, with these annuity investments, we can create generational wealth. They can be passed on. This is a massive benefit in the long run, but not initially recognized by someone who suddenly stands to inherit a couple of million Rand and just sees a new car or house or holiday round the world.

With a dread disease claim, another sound idea would be to keep the funds in such an income bearing investment and use the income (and at times even some capital if need be) for helping to pay for medical expenses. Here you are ring-fencing the funds to help along the same lines as to why you received them in the first place. For many of us reading this, you might well not need to use a claim payout in this category for paying for the medical reason you received it. This because our private medical aid probably paid for most, if not all, of the hospital bills and chronic meds. In my case, I paid for the GP, then the dermatologist, then the GP again, and then most of the lab fee. Medical aid paid for some of the lab fee. (Remember if your savings account paid for something, you are still paying). So I was out of pocket for a couple of doctor’s appointments, but I didn’t really need this money to cover any medical bills. [Hence on a side note, dread disease is not a vital benefit for folk with a good private medical aid and disability benefits.]

However, I am doing something slightly different with my R81,000 of early cancer cover claim. I am going to add it to my Allan Gray Retirement Annuity. But next week, for the 2026 tax year. I will be preserving the money as a whole; I will be helping myself get closer to the maximum tax contribution benefit for the ’26 tax year; the funds will be destined to give me income one day when I move them to a Marriott living annuity; they will be tax efficient; and another reason for me, I will be increasing my creditor protected wealth. [Money inside a retirement annuity or living annuity is creditor protected money.]

I would love to add this money to my dream of buying a 1960’s British sports car, like a Triumph Spitfire or an Austin Healey Frogeye. But it’s not sensible spending, because I am not in the category of people who don’t need a plan.

That was a lot of ramblings about what to do with funds you would not / should not / might not have had. Good for thinking about. I will dream of the British sportscar that I will probably never have.

This story began in May last year and ended this month. The conclusion was a R81,027 payment to me for a dread disease claim.

It all began with my annual medical check with my GP. He looked at a small ‘mark / spot / thingy’, on my back that I could feel. He said he thought it was nothing but let’s go visit the dermatologist and check. After waiting three months to get an appointment, the Doc said she (also) thought it was nothing but she wanted it out to check the histology… was the new word for me.

So back to my GP for him to practice with his scalpel and take a chunk out of my back. There went a piece of me in one of those small lab bottles with a green lid.

The results came back, and it was a basal cell carcinoma. Which in English I think means an early-stage cancerous tumour that could become skin cancer. But the tests showed that my GP had got it all out so that’s good and nothing more to do.

I only wondered a couple of months later if I could get a dread disease payout. I read my policy documents: my Liberty Life policy I could see wouldn’t pay anything: the terms were from stage 1 cancer upwards. My Hollard policy had a benefit called ‘early cancer cover’. But I submitted a claim to both companies anyway.

A claim takes effort. You need to get the claim forms for yourself to complete, as well as for your doctor to complete. I pre-populated the doc’s forms as much as possible and delivered them to her rooms. I paid the admin fee myself for her to complete them – because the companies take long to pay or might not pay and then it holds things up – and personally collected them afterwards.

The result was Hollard paid me a percentage of the benefit category for early cancer cover and liberty said no, as I thought. I wasn’t bad enough yet. Sometimes we should view an unsuccessful claim as a good thing…. It means you don’t have something you don’t want.

Next week I will write about what I suggest doing with money that you receive that you would never have had: this sort of money…. also inheritance… money like this.

This week, my point is about reminding you to do that good and full annual medical. You will avoid, prevent, or better manage to treat, so many things with better results. So I have learnt for myself.

And secondly, a claim takes effort, and you have to drive it.

I suppose I shouldn’t call these ‘Weekly Thoughts’ anymore but rather ‘Monthly Thoughts’…. Seeing as I haven’t been writing often enough.

We’re a month and a week into 2025. Nearly halfway to the Vernal Equinox. The days are getting shorter. This year will go faster than last year: it has one day less.

I could add thoughts around Trump’s dramatic and immediate stop to the US Aid program. How many people will stop getting help of one form or another, plus the number of people who suddenly lost their jobs because they work for some or other direct or funded Aid project.

I could add thoughts about the Chinese entering the AI game with DeepSeek and the resultant Magnificent Seven value loss / repricing. Depending on how one views this.

I could talk about the Sona of last night. I’ve often wondered about the title… ‘State Of The Nation’. If the title, why not talk to exactly what the title says.

But I’ll leave those topics.

Make it a year of getting your medicals done correctly. Reduce your sugar and processed food intake and walk up and down a hill every second day. I am seeing the consequences of the lack of these practises.

Take one day at a time. Make the decisions you make that day be the right ones. Tomorrow will take care of itself and yesterday you can do nothing about.

Take steps to reduce and eliminate the things that cause you stress. Get your life simpler. You will feel better for it.

I had a wonderful conversation earlier this week with a 22 year-old young man who is a ‘Born Free’. A Born Free is a loose term used for someone born after our ’94 elections.

He currently works in a Hotel restaurant. Some days he runs the hotel bookings and all guests in and out. He has a matric and is saving to put himself through a college program to get a Safety Officer’s certificate in order to get into better employment and give himself better chances in life.

We spoke of economics, politics, voting, sport – he was wearing a springbok jersey that day. He chatted at length about what his age people were thinking and doing and how they see the future. He already runs his own small business through owning a few sheep which he breeds to sell. He explained how he manages all this to (also) not be a victim of stock theft. As is usual with someone of his generation, he is very IT literate and even helped me with something I couldn’t manage to do on my phone. (Which is usually Adrienne’s job!)

I asked him if he has a car, to which he said no but that he is saving up. To buy what I asked. He went onto AutoTrader and pulled up 30+ year old Corolla’s. I said, ‘clever man’.

I always find it very refreshing to have conversations with such exciting and efficient young people, who are our future. Wish I was in a place to employ him.

A bit of a heavy topic, maybe…. But real for everyone at some stage.

Working with four estates this year and seeing firsthand what people are spending over the time of the passing of their family member, I see the immediate and direct costs and processes that are required. Some of you will also have seen these yourselves, dealing with someone in the family.

The first and immediate requirement is to call a Funeral Home. After collection, they deal with your doctor’s signatures on the Death Notice and they deal with Home Affairs for you, to obtain the Death Certificate.

But they might want payment upfront, for everything: Their service, the above services, the cremation fee, and your choice of coffin. This I have seen to be between R19,000 and R23,000. Someone in the family has to come up with this amount of money before anything will continue. You can be refunded from the Estate for these costs – a typical practice – but that cash might not come back until the Estate is ready to be closed. Could take a year or three. But someone still has to have the money straight away.

Then, a memorial service can vary. You might get the church hall for free, or you might need to rent a venue. Platters of eats can be ordered from your local Spar, or people might donate food. You might be wanting an open tab for a Wake at the local pub…. The varied options might cost anywhere between R5,000 and R20,000. And again, someone has to have the ability to pay this within the first week or so of the passing of your loved one.

Does this look possible, in your own circle, that someone has the cash flow to pay up to R40,000?

I know a funeral policy will help here. However, the Death Certificate is required for that payout, and therefore funds still need to found upfront.

As I said, not a great topic. Sorry. But so real.