Money Heroes
Money Heroes is an empowering series that gives you expert advice from our Momentum Dream Team to help you on your road to financial well-being. This season starts by discussing the importance of life insurance and its significance for you.
The importance of financial planning
In our ninth and final episode of Money Heroes, we wrap up the season discussing the importance of financial planning.
Hannes van den Berg, Executive Head of Momentum Advice, believes you should speak to your financial adviser at least once a year.
Theo Vorster, CEO of Galileo Capital, ends with advice on how to make your journey to financial independence a successful one.
Watch Hannes van den Berg unpack his belief that you should speak to your financial adviser at least once a year in the video below:
Make financial planning a priority
“We’re taught from a young age that we should see our doctor and dentist for a check-up annually,” says Hannes van den Berg, Executive Head of Momentum Advice. “I believe it’s equally important to see your financial adviser at least once a year.”
An annual review with your financial planner is the perfect time to reassess your financial goals and check they still align with your financial products, including life insurance, medical aid and retirement savings. In addition, if you’ve had any big life events, like a change in marital status, the birth of a child or buying property, remember to update your Will.
The role of a financial adviser includes:
- Building a strong relationship to understand your needs and goals
- Providing recommendations tailored to your needs
- Implementing your financial plan to make sure you achieve your goals
“At Momentum, we’re passionate about financial planning advice and believe that financial advisers add significant value to our clients’ lives. We strive to build and protect the financial dreams of our clients,” says Van den Berg.
A written financial plan establishes measurable goals to work towards. Your financial adviser can help you create one to track your progress, reduce uncertainty and make adjustments as needed.
A financial plan can also:
- Help you start saving, even with a small amount
- Create a long-term investment portfolio
- Prioritise your financial goals
What to look for in a financial planner
A good financial adviser takes a personal interest in you, guiding you through every life stage. Look for someone who you can trust and is legally accredited to give you financial advice.
Van den Berg says there are seven fundamental needs you should regularly discuss with your financial adviser:
- Life insurance
- Income protection
- Savings for the future and retirement
- Health and medical aid
- Asset protection
- Business interest protection
- Last Will and Testament
The right financial adviser will address these needs to create a comprehensive financial plan that’s right for you. If you are looking for a financial adviser, visit the Momentum website to find one in your area.
Watch Theo Vorster end off the series with sage advice on how to make your journey to financial independence a successful one in the video below:
Your road to financial independence
According to Theo Vorster, CEO of Galileo Capital, the ultimate goal of your financial plan should be to achieve financial independence. When you are no longer able to work, your savings and investments need to be able to maintain your standard of living.
It’s also important to consider how inflation will reduce the value of your money over time. Your savings need to grow with inflation, ensuring you can afford the same standard of living in the future.
Three steps for a happy journey to financial independence
The road to financial independence is a journey. Vorster says there are three steps to follow:
Step one – Clear debt
Clear all your debt as quickly as you can, especially bad debt. Good debt is the type that has long-term financial benefits – for example, a home loan that helps finance an asset which retains its value. On the other hand, bad debt doesn’t increase your net worth and often comes with high interest rates. It includes things like clothing accounts, overdrafts, credit cards and personal loans.
Step two – Emergency fund
Create an emergency fund to protect yourself from unexpected expenses. This fund can give you a financial safety net, so you won’t need to sell any of your investments in an emergency.
Step three – Time to invest
Use time to invest in building your long-term capital and take advantage of available tax breaks to move closer to financial independence.
“A big mistake I often see is people underestimating their timeline to retirement,” says Vorster. The second mistake is not understanding that longer lifespans need assets to keep up with inflation to maintain living standards.
Partnering with your financial adviser to create a solid plan will ensure you enjoy your journey to financial independence.
Thank you for following the Season 4 Momentum Money Heroes journey. We hope it has been informative. If you are looking for a financial adviser, visit the Momentum website to find one in your area.
To read the other episodes in this series, click the button below:
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward.
Ready to begin your journey?
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. Getting to where you dream of takes grit, determination and most importantly, honesty.
With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward. Our financial advisers have a vested interest in you: what do you value? What are your goals? This deep discovery sets the foundation for a relationship that will bear fruits of success.
Ready to begin your journey?
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