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It’s not uncommon for people to have a DIY approach to money and savings, and the internet abounds with information. Yet, in high impact financial decisions like those involving marriage or retirement plans, support should not be overlooked.

Lee Hancox, Head: Channel and Segment Marketing at Sanlam says there are times when a non-biased, level-headed financial intermediary can prove invaluable to avoid quick decisions with long-term consequences.

Here’s what you should and shouldn’t
DIY when it comes to finances:

  1. DIY your vows, but not your ‘prenup’.
    What can be more romantic than to write your own vows? However, when it comes to a prenuptial agreement, call in the experts. The assistance of a lawyer and financial intermediary is critical to ensure the contract is fair to both parties and covers all legal bases.
  2. DIY your tax returns, but not the more complicated tax tasks.
    Your tax returns may be simple to DIY. However, with tax, things can get complex quite quickly. For example, do you know how to maximise your tax deductions if you earn commission; and do you know how to structure your estate to be tax efficient, or create a foreign will for offshore inheritance to reduce tax? These are all scenarios where advice can really help.
  3. DIY a brand-new business idea, but get expert help to set up the business.
    Will you trade as a sole proprietor or a company, or a partnership? What’s the most tax-efficient way to structure a new business? Will you be VAT registered? How do you split up the business and your personal finances? What benefits will you offer your staff, should you employ a team? A business coach, financial adviser, bookkeeper or lawyer can add a lot of value, giving you time to focus on the important things.
  4. DIY (visualise) your dream retirement but don’t DIY the plan to get there!
    The Sanlam 2018 Benchmark survey showed 85% of South Africans who retire will not enjoy the same standard of living they enjoyed while employed; and 15% of people retire with just enough to live on. Create a detailed picture of what you want your twilight years to look like. But know that getting retirement right requires a serious long-term plan that’s perfectly tailored to your needs, goals and risk profile.
  5. Don’t DIY your divorce.
    Never opt for a ‘quickie’ divorce. Take time to think things through – like your child’s education, maintenance payments that increase in line with annual inflation, where you’ll live, and so on – and work with a lawyer and financial intermediary to ensure all is fair.
  6. Don’t DIY your will.
    Wills can be complex. For example, you may allocate your assets and forget that you’ll first need to settle your debts. There are also considerations such as how to take advantage of estate duty, and how to make sure your children are provided for. These are legal documents, so it’s highly advisable to involve a lawyer and financial intermediary.

 

 

Haven’t saved enough to retire?Haven’t saved enough to retire?http://www.sanlam.co.za/blog/articles/Pages/havent-saved-enough-to-retire.aspxhttp://www.sanlam.co.za/blog/PublishingImages/savedEnough.jpg, /blog/PublishingImages/savedEnough.jpg9/25/2019 1:30:19 PM012130aspx10059http://www.sanlam.co.za/blog/articles/Pages/Forms/AllItems.aspxhtmlFalseaspx2019-09-08T22:00:00ZYou’re 50+ and in many ways, life really is just beginning!
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