Taking charge of your financial freedom with financial advice
26 Feb 2018 FINANCE
By Motlagae Konyana
Women are increasingly becoming the financial decision makers in their families all the while trying to juggle many other different roles. In a single day, a woman can go from being a caregiver, a career woman and a chauffeur to a chef, a housekeeper and a mom. All this while holding down a career and running her own business
Women need to understand the value of money management and if there will be a sustainable amount left upon retirement; factoring in where and how their money is currently being spent and on what investments they have made.
“Visiting your financial adviser would be a great start, a role which remains ever so important for women today. They are able to guide you efficiently and advise you on ways which will assist iyou to manage your money in a way that you have sufficient funds to live the life you choose, and ultimately letting your money work for you,” says Boitumelo Mothoagae a financial adviser at Liberty.
Here are some of the questions you should ask your financial adviser:
- What is my overall financial position?
This is the first question you should ask your financial adviser among many other questions. It is important that every woman knows what her net worth is and, through a comprehensive financial needs analysis, you can establish what your overall financial status is. Remember without this knowledge, you won’t know if you’re making progress towards your goals.
This question becomes more important should you be in a position where you have recently become divorced or widowed. By disclosing your current financial situation to your financial adviser, they can assist in creating the necessary emergency plans so you will be prepared should circumstances change.
- How long do I need to plan and save for?
Because women tend to live longer than men, they need to plan. This is important during the decision making process with your financial adviser, as you need to ensure your retirement savings and income stretch farther and lasts longer so that you can take care of yourself and your family. Moreover, this can be difficult given that women generally choose safer, lower yielding investments which have lower returns. In order to avoid running out of capital, one needs to understand the risks associated with their investments.
- What about the cost of investing?
Ensure that you also ask how much you are expected to pay monthly towards your policy. What are you to benefit as well from the fee that you are paying? This includes any product, portfolio or adviser-related fee, as well as upfront and on-going fees. Fees and tax vary depending on the investment selected and it is pivotal that these are outlined to you when you take out an investment policy. Your financial adviser should be as transparent and clear as possible when it comes to the disclosure of fees and the taxes payable.
- How often would you need to review the goals in your financial plan?
This is an important part of a good, solid financial plan, if not the most important! You need to visit your adviser regularly, at least once a year, in order to be able to measure and track your financial progress, as well as being able to measure the probability of success in reaching your financial goals. Your financial adviser will play a fundamental role in helping you with this.