Tag: estate planning

For too long, private banking has been stuck in an outdated transactional mindset, focused solely on expediting daily banking needs for wealthy clients. True private banking needs go far beyond mere transactional prioritisation and convenience; it requires an understanding of the powerful emotions tied to an individual's finances and life goals and a fundamental shift towards a model that provides comprehensive value-adding advisory solutions.

Investing in an offshore retirement fund is one way of growing your wealth in a stable economy over the longer term, or even gaining residency in a foreign country. However, for South Africans, this scenario presents as many challenges as it does opportunities and should only be considered after consulting with a financial adviser and tax expert.

If you’re saving for your retirement, both retirement annuities (RAs) and tax-free investments (TFIs) are good investment choices. But which one offers the best tax benefits? The answer depends on your investment goals and unique circumstances. While there are tax benefits associated with both RAs and TFIs, the benefits are structured differently, and the product rules and restrictions are quite distinct.

Locally, as trust compliance becomes more complex and trusts become more costly to administer, their value is increasingly being questioned. However, a trust’s worth extends beyond its financial benefits, and as such, they are still very relevant tools to use in a well-crafted estate plan, especially for high-net-worth families. 

According to recent research from the Master of the High Court of South Africa, it’s estimated that 15% of South Africans who die have a will in place, which means that five out of six don’t. If you die without a will, your estate will be intestate. This can be a long and drawn-out process, and the assets from your estate will not be in line with what you wanted.

As we journey through life – from our first jobs to marriage and children, retirement and planning your estate – it is essential to have a certified financial planner. They can guide us through every stage in life, helping us to save enough and leave a legacy for our loved ones.

The passing of a loved one is always a traumatic experience. Not being prepared for the financial realities can add more anxiety to an already painful and stressful time in your family’s life. According to Statistics South Africa, more than 70% of South Africans don’t have a last will and testament. I suggest that you get your estate plans in order as soon as possible. You never quite know when your time is up.

Although a will is essential, holistic estate planning ensures that the next generation has financial freedom. This may seem obvious and straightforward, but there are many considerations and legalities that can make this process hard to navigate on your own. 

Estate planning involves structuring and managing your assets while you are alive, and putting measures in place to ensure your wishes are carried out after you pass away. It also ensures that there are no unexpected surprises your family will have to deal with.

The number of people living into their late nineties and early hundreds is growing by the day. The notion that you have to retire at 65 is becoming outdated and, more importantly, impractical and even financially hazardous.