Effective financial planning to get you where you want to be
Anyone who has ever watched an episode of Air Crash Investigation will agree it is fascinating to see how the drama unfolds. It is often a series of seemingly unrelated events that can trigger a crash, and just like a flight that should have been routine and mundane can end in disaster, so too can your financial planning, or lack thereof.
According to Mario Kasemba, who is a Financial Adviser at Sanlam, an effective holistic financial plan can help you keep your journey to financial freedom on track. He further adds that it is important to communicate frequently with your partner, children and financial planner to maintain and update the financial plan on a consistent basis. Kasemba emphasizes the relevance of following the financial plan and adjusting it when necessary in order to mitigate unforeseen circumstances. Mario further highlights the need for adhering to tax and retirement fund regulations as crucial in financial planning.
When quizzed on what the necessary fundamentals are that constitute a holistic financial plan, Kasemba lists the following:
Firstly, it is imperative to have an emergency fund to provide for unexpected events.
Secondly, a Will and Testament are essential to dispose of your assets according to your wishes.
Thirdly, a life cover to settle debt and provide for your family is essential when drawing up a financial plan.
Fourthly, you should draw up a concise savings plan for your children’s education, a car or deposit on a house in advance.
Finally, a retirement plan, which entails saving enough money throughout your career to provide for sufficient income on retirement, is pivotal in your journey to financial freedom.
Circumventing financial misfortunes is much better than dealing with the consequences afterwards. There are control measures that one should put in place to prevent financial misfortunes. Kasemba, advises that it is important to periodically review your Will and Testament; re-evaluate your insurance policies; update your short-term insurance; analyse your company benefits and lastly, constantly inquire about your medical scheme benefits.
Kasemba, concludes by saying that it is important to arrange a meeting with your financial planner to discuss the progress of your financial plan and how it may need to be adjusted.
Mario Kasemba is a Financial Adviser with Sanlam. He holds an Honours degree in Finance Management and Financial Planning accredited certification. Kasemba’s career as a Financial Advisor spans four years in the financial industry. He can be contacted on (+264) 612947568 or emailed at [email protected] for professional financial advice.