happens, the moment is always an opportunity to reassess the relevant aspects of your life and make the necessary adjustments.
A promotion, a salary increase or a bonus provides you with the opportunity to save more or to pay off your debt faster and thus avoid unnecessary interest payments. This is also an appropriate time to relook your insurance to ensure that your cover is sufficient to replace your regular income in the event of unforeseen circumstances or if your ability to earn should be compromised due to health issues. Knowing your current financial status in terms of monthly cash flow, risk cover and the cost of monthly debt will assist you in making the most appropriate decisions with the assistance of your adviser.
“ Life comes with no guarantees but it offers many invitations to improve our lives, our relationships, our careers and our financial situation.”
As you approach retirement it is important to review your risk needs as it is likely that you will have less or no debt to cover in your estate and your requirement for income protection will diminish. A change in lifestyle, little or no debt obligations, a lower income tax rate and the consolidation of your assets will require you to review your household budget and balance sheet as well as your Will.
When we reach the end of our lives on Earth it is the final moment that allows us the opportunity to leave a lasting legacy. While we may not always know in advance when our time has come, it is important to accept that we will not live forever and that we should not try to rule from the grave. Leaving your affairs in order and equipping those left behind with the best way to deal with the winding up of your estate and their inheritance is the best legacy one could ever leave.
Life comes with no guarantees but it offers many invitations to improve our lives, our relationships, our careers and our financial situation. Having a trusted adviser and a sound financial framework in place, while staying informed, looking after your health and remaining clear about your life and career goals, will put you in a position to seize moments and turn them into life-enhancing opportunities.
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Getting married or having a child is a major life event. When this happens, it is important that you review your monthly budget or cash flow, as well as your life cover and medical insurance needs to make sure that they suit your changed circumstances. The same applies to other major life events such as getting divorced or losing a spouse or a child to death. It is good to remember that any changes in your family structure requires that you update nominated beneficiaries for your retirement fund or savings, insurance policies and your Will. This is also an opportunity to reassess the liquidity situation of your estate in the event of your death.
* Note that none of the articles in this publication constitutes financial-, medical- or legal advice. Additional notes relating to featured content can be found on p. 46.
Johan Gouws
Once you enter the final five to seven years before full, or active retirement, you should start consolidating your assets and financial affairs to design the lifestyle you wish to embrace in retirement. Important decisions to make include where you will live, what type of annuity to purchase for your regular income and what the appropriate investment strategy for your retirement savings should be. For businesses or practice owners, the critical decision around a succession plan should be top of mind.
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