Financial Independence (Not Only At Retirement)

With Covid-19 being the literal flavour of the moment across all communication channels, we’ve decided to adjust our communique focus and revisit some of the tried and tested methodologies that we at Silke Financial Services have been communicating consistently with you our valued clients. One topic that always garners much discussion is that of retirement and retirement saving – remember, financial independence shouldn't have to start only at retirement.

At retirement the emphasis is to address the preservation of wealth while balancing that with living an enjoyable, financially independent life.

Too often we hear stories of people waiting for their day of retirement and then getting seriously ill or dying some six months later. Therefore, one needs to plan on two fronts to live a fruitful, full life before retirement and be in a financial position at retirement and thereafter to really enjoy the fruits of the labour from your working years.

Ironically very similar principles apply – as they do to those younger folks bringing up children and having a disciplined approach to proper financial planning. People who have reached retirement, or those already retired, who are looking for GFS [Guilt Free Spending] can change their habits by compartmentalising their money to suit their needs. All that is required is financial discipline.

We at Silke Financial Services are a case in point. I turned 50 this year and the principles mentioned by me in previous communiqué’s still apply:

1. Create a budget to control spending on necessary items
2. Create a budget to control spending on unnecessary items! - "Honesty in your spending should prevail!"
3. Silke Financial Services offers a unique planning method to assist you to compartmentalize your goal orientated investments, which is disciplined financial planning in action, for example: A cash management fund for emergencies. This means that every time you are confronted by a financial emergency you will not be forced to withdraw from investments that are earmarked as retirement capital. Large 'unnecessary' capital redemptions from money earmarked to fund your future lifestyle could potentially have severe long-term capital preservation consequences. A fund to draw income from, be it a living annuity or a capital withdrawal plan. A future-needs fund to visit those kids in 'Australia', or for the replacement of a motor vehicle etc. A fund to accommodate increasing health care needs not covered by your medical aid.

The real problems in retirement planning are not about how much you have. If we have an aggressive saving habit and have enough income to not touch it while working, we are all likely to step down with enough wealth. Treat your retirement corpus as sacred.

Silke Financial Services will continually monitor developments and be guided by the Department of Health and World Health Organisation.

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.

Thank you very much for your support and understanding.

For further information and guidance from the World Health Organisation on current outbreak of coronavirus disease (COVID-19), visit this page for daily updates.

For up to date and correct information on the status of COVID-19 in South Africa, start a chat with the official Department of Health WhatsApp support service at 0600 123456 (Just say 'hi' to get started).

Yours in health,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor