Is your short-term insurance cover adequate and up to date? Short-term insurance is for a time when you need protection against the financial risks that you have with your possessions (your things). Essentially, a short-term insurance policy is an agreement between a policyholder and an insurer that is in place for a limited time. Your insurance needs for these possessions will change over time, too. The policy can be flexible to provide enough cover for different […]
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The importance of an emergency fund
As the name indicates, an emergency fund is an investment or bank account that provides funds in the event of an emergency, such as car repairs, temporary unemployment, medical expenses not covered by medical aid, etc. During COVID many people realised just how crucial an emergency fund can be. It is recommended that you have between 3 and 6 months’ net income in the fund. In other words, if your net (after tax) income is R20 […]
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Are you co-habitating (living together)?
An increasing number of couples opt to cohabit rather than formalize their relationship through marriage. This choice raises pertinent questions about the financial and legal ramifications involved. When a couple resides together in a manner akin to a marital relationship without undergoing the legal procedures of marriage, it is legally termed “cohabitation,” also known as “living together” or forming a “domestic partnership.” There exists a prevalent misconception suggesting that couples cohabiting for a particular duration, typically […]
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Medical Aid
A serious medical event can be financially crippling for a family. A good medical aid should come to the rescue, especially for large hospital expenses. Plan options can be comprehensive (covering chronic, day-to-day, and hospital expenses) or limited to chronic and hospital expenses. The more comprehensive the option, the higher the contribution. Your membership is guaranteed, but a scheme may impose a 3-month general waiting period (during which no claims will be paid) and/or a 12-month […]
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Budgeting
Over many years as financial planners, we have found that many people do not budget. Our guess is the “schlep” factor is a major reason for this. What is a budget? It is a dynamic summary of your net (after tax and other deductions) household income and expenses. If you are living above your means (spending more than you are earning), you are using debt to finance your lifestyle. An important part of budgeting is making […]
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Funeral cover
Everybody should have funeral cover, either by way of a benefit provided by an employer or a personal funeral policy. So why do you need funeral cover if you have life insurance? Funeral cover usually pays out within 48 hours when your family urgently needs cash for a burial or cremation whereas life insurance can take months to pay out. Some modern policies offer funeral cover, included with life cover. An average funeral costs about R20 000 […]
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The importance of a will
Holistic financial planning should ideally be done in a specific order. In a recent blog, we wrote about temporary and permanent disability income protection as the foundation of a sound financial plan. The next component is a will. It is estimated that approximately 70% of working South Africans don’t have a will. If you don’t have a will you die intestate which means that the Intestate Succession Act determines who inherits what. This should be avoided! […]
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Tackling financial challenges as a team
In the shared journey of financial management within a relationship, it’s essential to identify the actual challenge: the financial situation, not your partner. Disagreements over money shouldn’t strain the relationship; rather, they should be seen as chances to strengthen bonds through understanding and teamwork. To tackle financial challenges as a team, it’s important to communicate in a way that values each person’s experiences and works towards your shared goals as a couple. One such transformative approach […]
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Sometimes, the best action is inaction
Many investors are drawn to the fast-paced world of buying low and selling high, chasing the thrill of timing the market for quick profits. Yet, there exists a timeless strategy far removed from the frenetic quest for immediate gains: embracing the power of staying invested over the long term. This approach, preferring ‘time in the markets’ rather than ‘timing the markets,’ encourages patience and a steady hand over speculative bets. The challenge with market timing is […]
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Smashing the invisible barriers
When we contemplate our financial goals, the journey often seems straightforward until we encounter invisible barriers that keep us from reaching our full potential. These barriers are rarely about the tangibility of money or the complexity of financial markets; more often, they are the intangible hurdles of our own limiting beliefs. The story of Roger Bannister, the first person to run a mile in under four minutes, isn’t just an athletic achievement; it’s a testament to […]
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