One size does not fit all

women independent financial securityIn our country, financial planning is seen as gender neutral. The reality is that men and women are often not on an equal playing field and this approach can have serious consequences.

Generally, women live longer than men. This means the effects of inflation have a bigger impact on their retirement income, which is particularly concerning because women do not always earn the same as their male counterparts, which effects the amount of savings they are able to accumulate. Continue reading

Shoddy Short-Term Cover

Car insuranceDealing with insurance companies when trying to settle a claim is a nightmare many of us can attest to. The experience leaves many clients disillusioned, and they tend not to involve their insurers if the damage to their property is minimal.

In two recent incidents, involving MiWay and Auto & General clients, the claimants had no choice but to claim. The accidents were caused when they were rear-ended while stationary at a traffic light. They had done nothing wrong. The vehicles were towed to these insurers’ approved panel beating workshop after the collision. Four weeks later, repairs still hadn’t started on either vehicle. Continue reading

Check Those Beneficiaries

insurance-beneficiariesWhen was the last time you reviewed your nominated beneficiaries? This is one of those things that we don’t really give much thought to.

Certain life events such as marriage, or the birth of a child, often come and go without us giving any thought to who would benefit from our Financial Planning. Forgetting to update a policy or plan could unintentionally create hardship for your loved ones.

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South Africa’s Best and Worst Insurance Companies

The Office of the Ombudsman for Long-Term Insurance is an independent body to which consumers can complain if they believe they have been treated unfairly by their insurer. In the latest annual report, it is stated that the Ombudsman had recovered R184.4 million in the form of lump sums for consumers from long-term insurance companies.

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The Ombudsman said it had received 9,815 written requests for assistance – which is an increase of 6% from the previous year. Of these complaints, 5,018 were chargeable complaints, with 3,491 cases full cases finalised. Three in 29.8% cases were resolved in favour of the complainant.

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The Difference Between Fee-Based vs Commission Based Financial Planning

northwood-man-sitting-at-deskAt present, the majority of financial planners in the greater financial planning industry work on a commission-based system. Here, the financial planner works their personal fee into the total cost of the policies and packages to which he or she sells their clients.

 

Although a typical industry standard, a financial planner working in accordance with a commission-based system faces two challenges: Continue reading

The importance of planning and regularly reviewing your Last Will and Testament

Discussing matters of your death with your loved ones is never an easy conversation to have, nor is there ever an ideal manner in which to approach the topic. However, doing so can save your family, assets and estates in the long run. The following article discusses the critical importance of constructing, and regularly reviewing, your Last Will and Testament.

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A client of mine, Walter, married his wife in 2000. As good citizens, he and his wife made each others sole beneficiaries to each others possessions, and assigned their parents as the inheritors thereof in the event of their death.

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The benefits of creating multiple passive income streams

During the course of our careers, in our respective places of employment, we may receive a number of promotions and salary raises that will aid toward increasing our monthly incomes. Despite this, our incomes; or our costs to our respective companies; will never bring us wealth. Our employers will often award us a sum each month that allows us to be comfortable, or at minimum, survive the month. Wealth is created through making clever decisions and having strategic financial plans in place. To grow your wealth, you should seek to have more than one income stream, as it is those extra income streams that create wealth.

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