Have you stopped to think whether or not your finances are secure? If not, you should consider this a problem and start taking the appropriate steps in planning to become financially secure.

The first step is to get the appropriate advice. Dealing with a financial advisor is not as dark and gloomy as it sounds, there are registered financial planners in the industry that most certainly will look out for your best interests.

It is important that you find a financial advisor that you trust — remember they are advising you on your plan for life.

A registered financial planner will assess your needs and goals, comparing them to what you currently have in place, they will conduct a financial needs analysis, which will show you where you stand financially and what your shortfalls are.

With this information they are able to propose plans to you on what you should be doing. A financial advisor should work with you to make these goals a reality.

So are you financially secure?

These are the types of questions that a financial advisor should be asking you, if you have never been asked these questions or have never thought about the consequences the answers might have on you, then it is time to get a plan into action and become financially secure!

  • If something should happen to you, would there be enough income for your dependents to continue with their current standard of living? Would they have to move and sell the house?

  • Have I got enough life cover to fund an outstanding bond, provide an income per month for my dependents and all the other costs that are incurred when winding up an estate (such as estate duty, executor fees, donations tax, capital gains tax)?

  • If I was unable to work, would I be able to take care of myself or would I be dependent on someone else?

  • Am I saving enough to retire or would my children end up looking after me?

  • Do I have emergency savings for the unforeseen?

  • Can I afford school fees?

  • Am I living from month to month?

  • Do I know exactly where and what I spend my money on?

  • Am I creating wealth?

  • I want to buy a house or start my own business, are my goals in tact and how much should I save?

Once you have answered these questions and find that you cannot answer most of them positively, then you need to consider planning for the future.

For more information and advice please contact Shirley Passanah, a Registered Financial Planner on +27 21 674 2115.