Services for the individual

 

When life happens, almost every significant life event has financial, tax or legal implications. It is a misconception that the best time to find a financial adviser is once you have accumulated your wealth and are contemplating retirement. In fact, nothing could be further from the truth.

 

Your Career Journey

 
 

You do not only need a financial planner once you have built your wealth. The best time to seek the advice of a financial planner is at the outset of your career, we will partner with you on your wealth creation journey. Although you might not think you require the services of a financial planner, here are some things that we can assist you with: 

    • You will need to move off your parents’ medical aid as you will no longer qualify for dependent status.  We will assist you to join an appropriate medical aid and put a gap cover policy in place to protect yourself against future hospital expenditure which is not covered by medical aids.

    • While you are young and employed, your greatest asset is your ability to generate an income. This asset must be protected through an income protection benefit. If not offered by your employer, we will advise you on the most appropriate product considering the nature of your occupation and future earning potential.

    • If your employer provides retirement fund benefits, we can offer advice about the best investment strategy. Many employer’s offer a default investment strategy which targets conservative returns which may not be appropriate for your investment timeline.  If your employer does not offer a retirement fund, we will advise you about maximizing your tax-deductible premiums towards a retirement annuity.

    • We will assist you in developing a strategy to build up an emergency fund using a range of discretionary investment vehicles, including active and passive investment strategies

 

Getting Married

 
 

Before entering a marriage contract, it is vital to understand how the various marital regimes will impact your future.  The decision to marry out of community of property with or without the accrual system must be made prior to the date of marriage. If not, you will automatically be married in community of property. Before getting married, meet with us to discuss the most appropriate marital regime for your circumstances. Once married, we will assist you with:

    • Adding your spouse as a dependent on your medical aid and gap cover policy, or vice versa. 

    • As a couple, you may want to consider taking out life cover to protect each other in the event of death. We will assist with this process and ensure that your beneficiary nominations on any existing policies are updated.

    • We will assist you setting up or updating your Last Will & Testament to ensure that your estate is bequeathed according to your wishes.

    • We will be delighted to help you and your spouse in developing a joint financial plan to map a path forward together.

 

Buying Property

 

Purchasing a property affects your cash flow and has several financial implications that we can assist with, which include:

    • Understanding the mechanics of your access bond and how this facility can be used to maximize savings. For example , if you are a commission earner or earn an irregular income, you may wish to save surplus income in your access bond and then use the accumulated funds to maximize your RA contributions at the end of each tax year.

    • You may need a credit life policy to cover you in the event of death, disability, or retrenchment.

    • You may need to increase your existing life cover to ensure that your estate is able to settle the home loan in the event of your death.

 

Having Children

 
 
 

Before contemplating having children, our advice is to ensure that you and your spouse are on the best medical aid plan for your needs – bearing in mind that, once you fall pregnant, you may not be permitted to change plan options during that benefit year. If you fall pregnant while not on a medical aid, the scheme can exclude all costs pertaining to your pregnancy and birth as a condition of membership. Other financial planning considerations include:

    • It is important to understand your maternity benefits. Together we can prepare a cashflow plan to ensure that you can survive financially during this period.

    • Once your baby is born, he/she will need to be registered as a dependent on your medical aid and gap cover policy.

    • You may wish to increase your life cover to ensure that your child will be financially provided for in the event of your death. 

    • You and your partner would need to update your respective wills, appoint guardians for your minor child and possibly set up a testamentary trust to protect any assets bequeathed to your child.

    • You may want to set up an investment for your child’s education.

 

Falling Ill

 
 

Falling ill, suffering from any form of temporary or permanent disability, or being diagnosed with a chronic condition can impact your financial plan in the following ways:

  • If your disability or severe illness gives rise to an insurance claim, we will manage this process on your behalf. You may be able to claim from your income protection benefit or severe illness policy, so it is important to know what benefits you have in place.

  • Being diagnosed with an illness may qualify you for your medical aid’s chronic condition benefit. Once again, we will be able to assist with this administration and give you advice on this.

  • Depending on the diagnosis and subsequent prognosis, you may want to consider having a living will drafted.

 

Starting a Business

 
 

Before setting out on your new business venture, you should consider the following and our advice is on hand:

  • The most appropriate entity for your new business in, considering your marital regime, tax and estate planning.

  • Devising a strategy for any money accumulated in your retirement fund, considering how this money will be taxed on withdrawal and its future growth potential if reinvested.

  • Drafting a buy and sell agreement and putting business assurance in place in the event of a partnership. You may also want to consider key person assurance.

  • Replacing any life or disability cover that you may have lost as a result of leaving your employer group life cover.

 

Inheriting

 
 

Making decisions regarding an inheritance pay out or windfall can be difficult. We will be able to advise you:

    • How best to utilize the capital whether it be to reduce your home loan, boost your retirement annuity, minimize tax, reduce debt or renovate your home in order to generate additional income.

    • How your inheritance or windfall impacts on your retirement plan. Will you be able to retire earlier than anticipated? Can you cut back on your retirement funding premiums?

    • How to revise your life goals and invest the capital so that it aligns with your future.

 

Getting Divorced

 
 

Seeking the advice of a financial planner before getting divorced delivers the most positive outcomes. Here is how we can help:

    • Before filing for divorce, it is essential to know how you are married, what the implications are in respect of your estate, and what rights you have in respect of your investments.

    • With regard to retirement funds, South African legislation allows for what is referred to as the ‘clean break principle’ which is the right of a spouse married in community of property to receive immediate payment from the other spouse’s retirement fund interest allocated to him/her, and we will be able to guide you through this process.

    • We will help you to understand the Capital Gains Tax implications of any disinvestments or sale of assets that need to take place as a result of the divorce.

    • Once you are divorced, it is essential to update your Will to ensure that no unintended beneficiaries inherit from your estate. Failure to update your will within three months of the divorce order could result in your ex-spouse unintentionally inheriting from your estate.

    • Depending on the terms of the divorce order, you may be required to move onto your own medical aid.

    • Importantly, any maintenance obligations in terms of the divorce order will need to be protected and this is often done in the form of a policy on the life of the spouse responsible for maintenance.

    • Once again, you will need to reconsider the nominated beneficiaries on any polices, investments or retirement funds.

 

Retiring

 

Retirement fund legislation is complex and may be one of the most important decisions of your life. We are here to assist with the following:

    • You will need to decide when to retire from your pension fund, provident fund or retirement annuity, considering tax and estate planning factors.

    • Navigating the life and living annuity arena can be a minefield and we will provide guidance on the most appropriate vehicle to use. 

    • It is essential to ensure that your investments are appropriately allocated between compulsory and discretionary investments to minimize tax, maximize cashflow and reduce the risk of outliving your retirement capital.

    • Drawing a post-retirement income from multiple sources can be tricky and setting the correct rate of draw down from your living annuity can be daunting. Determining whether to draw from your annuities, discretionary investments or to use other sources of income (such as rental income) – and at what point – can be complicated. We will model your post-retirement cashflow for you so that you can budget accordingly and draw down in the most tax-efficient manner.

 

Losing a Spouse

 

Losing a spouse is considered the most stressful life event, least of all because the financial ramifications are enormous and should be navigated together with someone you trust.  Important considerations include:

    • Any pension income earned by the deceased spouse may be affected as a result of his death. The pension may fall away completely, or the fund may continue paying a spousal pension. Either way, we will explain the fund rules to you so that you fully understand the effects on your income.

    • It helps to be aware of any life insurance or funeral cover that your spouse holds so that you can claim accordingly. Funeral policies generally pay out within 48 hours and help significantly with cashflow during this period.

    • You will need to completely re-work your retirement plan considering the changes to your income, living expenses, possible sale of assets, liabilities in your estate, and estate duty and CGT implications. 

    • You will also need to draft a new will and nominate beneficiaries in accordance with your wishes.

Our Purpose:

 

  • To protect your family in the sad event of your premature death, and so that your family knows who to call in the event of something happening to you.

  • To reduce your financial anxiety, manage your risks and give you peace of mind.

  • To protect you, your family and your income if you get sick.

  • To provide you with a retirement income that you do not outlive, so you can maintain your independence and enjoy your golden years. 

  •  To promote good long-term financial behaviour so that you meet your goals.