After protecting your wealth you will be able to create wealth. Creating wealth includes but not limited to investing, saving for education, saving on taxes and saving for retirement.
Ask yourself the question. Is my money growing more than inflation where it is now?
If the answer is yes, then
you are allowing inflation to eat away at your wealth. In South Africa,
the inflation rate per year is approximately 5%. That means if your
money isn't growing by 5% per year, you are effectively losing money.
This is why investing your money (as opposed to keeping it in the bank)
Over the long term, investments usually provide a return of approximately 10% per year. So by investing, you are not only protecting your wealth from diminishing in value, you are also putting your money to work for you so it grows in value.
Investing in Property
This is a fantastic way to grow your wealth if it's done correctly.
However, investing in property is a big commitment. You are leveraging the bank's money and because of this, you are earning a return based on an amount that is much larger. As a result, the negative or positive results of such an investment are magnified.
If not done properly, it
won't prove to be the amazing investment you would've hoped it to be, or
even worse, it could impact your finances negatively. However, if done
correctly, you could become a much wealthier person.
Performing market research, finding properties with high demand that could potentially fetch higher rental income and negotiating discounts on agent and attorney fees are some of the things I can share with you.
Saving for Education
Have you made provision for that little one of yours to get proper education?
Saving for your children's education
can be tricky. When do you start? How much should you save? And should
you compromise your retirement savings for their education?
probably a dozen more questions surrounding this subject. People usually
jump to education policies when they are looking to save for their
child's education. This may not always be the best solution.
There are other investment products that could yield better results and could be more tax efficient. Just because it isn't called an 'education plan', doesn't mean you can't use the money for your child's education.
Let me structure your investments to optimize on each of your investment goals. Let me calculate and determine exactly how much you will require for your child's education. And let's do this in the most cost-effective, tax efficient manner.
Saving on Taxes
Have you made sure that the vehicles you are invested in are tax-efficient vehicles?
I believe a tax efficient approach to your finances is an integral aspect of sound financial planning. Let me enlighten you and show you how to engage in tax-efficient financial planning.
Saving for Retirement
Have you started saving up for that retirement that you dream about?
Retirement annuities are considered the best way to build wealth, primarily because of the tax savings that an individual can benefit from. It's easy to delay saving for your retirement - simply keep telling yourself it's still a long way off. But be aware, 7 out of 10 South Africans who retire, have not saved sufficiently to maintain their lifestyle. Don't be one of them.
In South Africa, inflation is relatively high so saving early and saving enough is crucial. In addition, ensure that you are keeping informed on how your retirement investment is performing. Considering it is a long-term investment, the final outcome is highly dependent on the investment performance over the period. It could very well make the difference between a comfortable retirement and a struggling one.