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World Financial Planning Day – Tips to build a lasting legacy

In the spirit of World Financial Planning Day that was celebrated last Wednesday, Noluyolo Betela, client relationship manager at Allan Gray, shared strategies and plans that everyone can put in place to help create personal and generational wealth. The day is about raising awareness about the importance of planning for a financially secure future.

Tip 1: First, define your financial legacy with a plan

“Legacy means something different to each of us, whether it be building up sufficient reserves to ensure that you are adequately prepared for life and those unexpected events, or being able to send your child to the best school available, or even acquiring a property for your family,” says Betela.

She says that it is imperative not to lose sight of these longer-term goals.

Tip 2: Understand the investment products available

Betela says understanding your investment products is key to ensuring that you achieve your desired outcomes. It becomes particularly important when comparing various products, such as basic unit trusts, retirement annuities, tax-free investments and endowments.

Tip 3: Ensure that you have a valid will in place

“To ensure that your loved ones are taken care of, you should have a valid will in place, which is a document indicating how your assets should be distributed in the event of your death,” explains Betela.

Tip 4: Understand what will happen when you die

“It is important to understand how benefits are allocated and how long it may take for each of these financial products to pay out upon your death so that you can ensure that your loved ones are taken care of over the short and long term,” says Betela, adding that it is crucial that you nominate beneficiaries and keep your information up to date.

Tip 5: Seek professional advice

When it comes to estate planning, you need to consider the law, the rules that govern your financial products, and tax.

“This can become an incredibly complex task. Consulting an independent financial adviser is the best way to ensure that your unique circumstances are catered for and that you leave your loved ones with the legacy you had in mind,” concludes Betela.

A shout out to all financial advisers: You play an instrumental role in helping your clients achieve many life aspirations and goals.

Click here to download the Betela’s article – a good article to share with your clients. Also remember National Wills Week normally in September, will now take place from 26 – 30 October this year – a good time to check in with your client and update their wills.

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