What is a Certified Financial Planner?
A Certified Financial Planner (CFP) is a financial planning professional who has met all the requirements in terms of the academic qualifications (NQF 8), passed the professional competency exam (board exam), met the ethical requirements and has the required experience as set out by the Financial Planning Institute (FPI).
A Financial Planning professional has a duty in terms of the FPI code of conduct, to treat all clients fairly, to act honestly and with due skill, care and diligence and in the best interest of their clients and in the integrity of the financial services industry.
A professional Financial Planner can assist their clients with holistic life financial planning, in order to help their clients meet their financial goals and objectives.
Estate planning can be a complex and an emotional topic to discuss. Each and every one of us will pass away at some stage, and when we do eventually die, we (our estate) will all incur "death bed" expenses, such as income tax, capital gains taxes, executor fees, masters fees, funeral costs, outstanding debt expenses (bonds, credit cards, loans etc.) and estate duty taxes.
It is important that we know how much this will cost us while we are still living so that we can start to plan and make provision for these expenses. The last thing you want to do, is leave behind a financial mess for your grieving family to sort out. I can help you with a structured estate plan which will mimimise some of these difficulties, and will ensure that your intentions as set out in your last will and testament is fulfilled.
Would you like to retire comfortably? most of us would answer yes to this question, however the disappointing official statistics according to the South African Financial Planning Handbook 2017, is that at retirement, 47% of people will rely on their family for financial support, 31% will have to continue to work, 16% will rely on the state for an income and only around 6% of South Africans will be able to retire.
The trick is to start saving as early as possible and as much as you can afford. A retirement annuity along with a tax free savings account is one method which one can use to plan for their retirement. Some retirement savings vehicles have huge income tax benefits, which I am happy to share with you.
Personal Financial Risk
Life tends to throw some nasty surprises every once in a while, some of these unforeseen events can severely affect us financially, it is always prudent to be prepared for such financial setbacks.
These risks include insufficient income if you were disabled or if you were severely ill and were unable to work. Often a simple solution to these setbacks is to simply insure the risk or build up an emergency fund (cash back-up plan), in order to reduce the financial loss.
Other risks which one must take into consideration, includes inadequate medical cover and none or under insurance of personal items such as household and home owners insurance.
I can assist my clients with a holistic life financial plan, which includes the analysis of the clients entire investment portfolio, estate and retirement provisions, capital needs for their children's education, provision for your family in the event of your death and any risks that your business may have in terms of financial loss and the impact on your family.
I believe that each one of us would like to be debt free, retire comfortably or perhaps go on an overseas holiday or buy a nice motor vehicle and give our children the best education we can afford. The good news is, that this can be achieved if we are disciplined, save regularly and start saving early.
The reason why some people are disappointed with their investment returns is usually due to a combination of the following: -
Should you wish to save an amount for a specific goal or for your retirement, I can discuss the various investment options, funds and tax implications with you in order for you to make an informed decision.
Do you own your own business or, are you perhaps a shareholder in a business? If so, please ask yourself the following question: when I die can my business or business partner afford to pay my family the value of my shares in the business? if not, I have a simple and appropriate solution to this risk which I am happy to share with you.
Do you perhaps have a staff member that is critical to the success of your business, if they were no longer able to work for you, how will business be effected? I have a solution on how to reduce the financial impact this may have on your business. In addition I can discuss some solutions in order to retain the services of such a staff member, ensuring that their services are retained in your business for years to come.
Accountants • Tax Consultants