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What is your financial health?
A term used to describe the state of one's personal financial situation. There are many dimensions to financial health, including the amount of savings you have, how much you are setting away for retirement and how much of your income you are spending on fixed or non-discretionary expenses. Savings is important, but there are other financial habits that can help you manage and protect your money more effectively.
Estate planning
Make sure your estate plan (such as a will and personal trust documents) is in order for the sake of your family and dependents. Estate planning is not just for the wealthy. Planning poorly or failing to plan can cause unnecessary expenses and delays in the settlement of even modest estates. Your property may go to someone you really do not want to benefit. Worse still, your beneficiaries may suffer financial hardship as a result.
Healthcare planning
Healthcare should really be given priority. Failure to obtain cover for unforeseen medical emergencies could result in severe financial burden.
Risk planning (Assurance)
You need only to assure against losses that you or your family cannot afford. For example, single people may not require life assurance, but married people - if they are breadwinners or family caretakers - almost certainly do. And do not underestimate the importance of disability assurance; you're more likely to be disabled and out of work for some period than you are to die before age 65.
Everyone has their 'ideal' amount of cover, but often the expense simply makes it uneconomical to establish. Therefore, you should prioritise your cover to ensure that the most important risks are covered first.
Did you know that the savings portion of your life policy premium is not paid out upon a claim? The insurance company keeps this portion. What this effectively means is that you would have to surrender your policy should you need to make use of this money. Life/disability cover should therefore be separate from investments.
Fiduciary (Last Will and Template; Power of Attorney; Living Wills
It is important that you review your fiduciary documents regularly to ensure that your wishes are echoed in these documents. Listen here. We can facilitate the provision of fiduciary services to the clients of Silke Financial Services which includes Estate Administration, Will, Living Will and Power of Attorney drafting, Trust Administration and any other Legal Services as when required.
Goal-Based Investment Planning (A 'bucketing' approach)
Creating a household budget. A budget can help you decide how to appropriately split up your income each month. Start by separating your budget into 3 spending categories: lifestyle wants, essential needs, and legacy aspirations. Don't get fixated on past- use a zero based budget focussing on what you need. Remember, let your lifestyle determine how your money should behave.
If you need it, plan it
If you don't need it, don't keep it
Our integrated wealthcare approach is based on your personal priorities and aspirations. This process is designed to give you a clear course of action for pursuing your goals that span various time horizons and life stages to empower you to do extraordinary things with your wealth, both now and in the future.
Regards,
Shane Thom, CFP® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor |
