Savings and Investments – Financial adviser plays key role in financial education

Posted on

Old Mutual’s Savings & Investment Monitor also points out that there is no greater time than now for people to make responsible and informed financial decisions to ensure they can withstand the pressure and not compromise their long-term savings goals and financial futures.

”As the custodian of so many people’s financial futures, we are acutely aware of the important role we must play in providing valuable and practical tips and tools to improve the financial wellbeing of our people and our nation,” John Manyike, Head of Old Mutual Financial Education, adds.

Here are Manyike’s key financial education tips for your clients:

Always seek expert financial advice
Remember that during times like these, knowledge plays a crucial role in the financial decisions we make. Equip yourself with financial understanding to ensure you make the right decisions
Look at your finances, and particularly your expenses, really carefully and plan properly for the future
Consider having a ‘side hustle’ to supplement your income
Find ways to downscale your lifestyle to free up additional cash
Don’t borrow from your future and don’t be tempted to draw from your retirement savings
Use credit responsibly
If you have already consolidated your debts to ease the pressure, avoid further credit
Avoid taking loans to buy things in bulk
Be very responsible and cautious about buying on credit to avoid debt spiraling out of control
Be transparent with your family, play open cards about the debts you have to service so you can manage expectations and help them adjust
Do not be tempted to disinvest because of panic. Markets are generally volatile during uncertain times but will self-correct over time
If you resign from your job during this time, avoid the temptation to cash out your retirement savings
Before you approach a credit provider or accept any offer of debt relief or a payment holiday, make sure you understand the terms and conditions of the agreement
Build an emergency fund over time. Ideally you need a safety net that’s the equivalent of 6 months of income
Include loyalty programmes in your emergency fund building strategy

Financial education is a stated priority of the regulatory authorities, but not something product providers and financial advisers can neglect. Our very future depends on us utilising our up close and personal relationship with clients in this regard. Regrettably, as someone once said: I can explain it to you, but I cannot understand it for you.

Click here to download this presentation for your discussions with your clients.