SO WHAT IF YOU DON’T MAKE IT TO RETIREMENT?

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How much thought have you given to retirement?

  • At what age will you retire?
  • Where will you stay?
  • Will you be debt free at that point?
  • Will you be buying a new car as you retire and keep it through retirement?

I have found most of us start focussing on this too late. Now here’s what’s interesting…

DO YOU WALK YOUR TALK?

How many claims have you had in the past three years?

None…? One…? Five…?

The reason I’m asking is because insurance is based very much on “good faith”. You tell the insurer the truth about your claims history, and they give you the best possible deal.

Think about it.
If you tell me you’ve never claimed in five years – and I’ve quoted you R2, 000 a month for insurance – then I stand to make R120, 000 from the deal. I could afford to cut you an even better deal if I really wanted you as a client.

THE EASY WAY TO GET OUT OF DEBT

I was listening to one of the Nedbank adverts the other day – the ones featuring a guy by the name of “Eugene”.

In the ad, a young lady was asking “Uncle Eugenie” for money.

It got me thinking about how much I wish I had a genie.
Can you imagine saying: “Uncle Eugenie, please pay off my bond?”
Listen, I’ve got a relatively smallish bond as bonds go, but I could use the seven grand a month to save for retirement.

HOW TO GUARANTEE YOUR CHILD GETS A DECENT EDUCATION

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How much does varsity cost nowadays anyway?

To be honest I don’t have a clue, and I don’t really want to know.

All I can say is that putting your child through medical school is going to cost a lot more than R1, 000 a month.

What’s even scarier is the cost of getting them to varsity. I’m talking schooling. In fact, scrap the cost of schooling…I’ve heard that the cost of preschool and aftercare is even more expensive.

Now if you read my previous life insurance article about leaving your kids with an inheritance, then you’ll know that I believe in life insurance.

WHAT DOES FINANCIAL PLANNING MEAN TO YOU?

Ask ten people about the meaning of ‘financial planning’ and you might get ten different answers:

  • “It’s about buying insurance”
  • “It’s about investments”
  • “It’s about getting out of debt”
  • “It’s about setting up a trust or writing a will”
  • “It’s about making sure you don’t end up paying taxes at death”
  • “It’s about paying less tax”

Actually it’s a mix of all the above. Each of us has only so much money to go around. We need to manage our money in the hope of achieving our goals.