Building your financial legacy takes smart money moves, but it also requires dedication to reap the benefits. The biggest question most people have is how do you do this without hurting your current finances?
While our financial journey's may differ, there are three handy things to build a foundation towards protecting your and your loved one's financial future without breaking the bank.
Retirement
Your plans for retiring could take years to achieve or you could have a couple of years left before you will need to retire. The only difference is how soon you start saving towards your retirement.
According to Old Mutuals Saving and Investment Monitor, 55% of people stated that they could not afford to save towards their retirement and 36% said that a retirement plan was not a priority at the moment. The sad reality is that only 33% of South Africans have enough saved for their retirement.
Having some form of a retirement plan in place can give you peace of mind knowing that no matter what happens in the market before and after you have retired you will be secure. Speaking to a financial advisor, which is free, can help you find a plan that is suitable for your finances without putting a strain on your finances. Your advisor could also highlight areas in which you can cut back on to ensure that you will be able to afford the payments on your plan.
Life insurance
While we try to make the most of each day, tomorrow is not promised. Life is unpredictable and the last thing anyone wants is having to leave their loved ones with nothing when it comes to a future where you will no longer be around to provide for them financially.
Having life cover in place will mean that they will be able to continue the life that they know. They can use the payout from your life cover to pay for daily living expenses, any debt you may have accumulated, funeral needs, educational fees, and whatever they may need. Always check the features and terms that come with the policy to see if it will be the right fit for you. You can also make use of our quote starter to see how much it will cost you in a few seconds.
Investments
Investments are complex and need professional insight to see what will work for your finances. Two tips to keep in mind when looking for a diversified investment portfolio that can help grow your money is; invest with small amounts of money and never put all your eggs into one basket. Remember this is a balancing act that also requires that you keep tabs on any debt that you may have. Knowing how much you owe can help you create a realistic budget on how much you can put aside for your investments to avoid building more debt.
Bonus tip
There have been many horror stories of relatives and strangers coming to stake a claim on a deceased person’s assets. The last thing that you want is having all that you have worked hard towards being claimed by someone you didn't want it to go to. Having a will in place can protect your loved ones from having to deal with such outcomes and can also ensure that the right people end up with the things you would like them to have.
