Northwood Financial Services CC first opened its doors in 1990, with a complement of only two staff members. Everything was simpler back then, and processes were relatively easy to manage.
In 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 “One size does not fit all”
Most women take on the role of caretaker in their family unit. This makes them more inclined to tend to everyone else and their needs first. Often to the detriment of their own.
One area that sees the most neglect is financial planning. When analysing a married couple’s Financial Needs (FNA), a good financial planner will work on the assumption that the marriage will end, whether because of death or divorce. Both these outcomes must be taken into consideration. Unfortunately, the female often comes off as second best. Continue reading “Financial Planning for Women”
Clients are often confused by the various grand job titles used by consultants. Here is a simple explanation of who is who in the zoo.
1. Does their business card display an insurance company logo?
If YES, they represent a single company and the product they sell comes from their employer. Continue reading “There are 3 main categories of financial planners in South Africa”
Members in the financial planning and advisory industry have two different means of earning an income.
The industry standard – appropriated by most financial planners – is a commission-based model. With this, the financial consultant meets with the client, assesses the client’s needs requirement and then suggests and sells various policies to them. As the financial consultant works on a commission-based model, they will not earn an income in the event that no sale is made on behalf of the client. With this, there is a more aggressive approach to the selling of policies, and more often than not, the client will be heavily encouraged to buy a policy.
Getting married and starting a life with the person you love is a marvellous new chapter to begin, unfortunately, most marriages do not last. The divorce rate has increased by 5% and statistics from 2012 show that of the 161,112 marriages that took place in South Africa, 22,000 of those marriages resulted in divorce.
In most instances, the wife almost always ends up in a position of disadvantage. After experiencing a divorce, she will be forced to deal with emotional trauma and extra financial implications, and too, face the challenge of dealing with getting herself back to where she used to be and figuring out where she wants to be. Continue reading “Dealing with the Financial Implications of Divorce”
Is all debt bad? To answer that question, we need to consider two concepts:
- What is the cost of debt?
- What is the reward to be gained as a result of that debt?
If you are prepared to enter into debt to purchase a pair of shoes valued at R10 000, the reward will be that you are the envy of many of your friends. Is this reward worth R10 000, plus interest on the debt? Continue reading “Is all debt bad?”
The cost of education in South Africa is at an alarming all-time high, and these rates are not showing any sign of decreasing in the near future. Budgeting for your child or children’s education is imperative, and need not be too much of an overwhelming task.
We suggest seeking the assistance and guidance from a trusted financial planner to set a long-term strategy in place through the use of carefully considered unit trust funds.
The meaning of the word ‘Ubuntu’ is deeply rooted in African philosophy and ideology. A Nguni term, ‘Ubuntu’ roughly translates to ‘human kindness’ and often encompasses greater aspects of humanity and human essence, largely in relation to other people.
At Northwood Financial Services cc, we use the word ‘ubuntu’ with our clients to describe a situation that develops when our extended family expects us to be kind, even if their demands are unaffordable.