You can love your children equally – without spending the same Spending the same on each child is nearly impossible – and most don’t expect it. My mother, for example, still gives me an extra Christmas gift to “even things out” because my sister has children and receives gifts for them too. It’s a lovely gesture, but I don’t need my mom to keep score – I love my niece and nephew, and they matter to me, too. Most children need to feel equally seen, supported, and valued, and that cannot be measured in rands and cents. Giving without boundaries can lead to...

It’s a common question, especially in midlife or as you approach retirement. The rising premiums can feel harder to justify, and letting go of the cover may feel like a waste – especially after investing in it for so long. Before you cancel, it’s worth pausing to reflect: Why did you take it out – and do you still need it in retirement? Think back to why you took the policy in the first place. Was it to: Protect dependants? Cover a home loan or debt? Provide liquidity in your estate? If those needs no longer apply, and your retirement feels secure, the cover might no...

Remember, when your income changes, the way you manage money must change too. The simplest way to regain control is to be proactive and make your money work for you. Step 1: Take stock of your money List your essential expenses – Housing, food, utilities, insurance, transport, school fees, and medical costs. These are your priorities. Cut back on non-essentials – Subscriptions, takeaways, and luxuries can be paused. Review your retirement savings: You may have scattered retirement accounts – old pensions, investment funds, or annuities you haven’t reviewed in...

Here’s a guide to help you understand key areas like your severance package, retirement funds, and financial planning to make informed decisions during this time. The retrenchment package Retrenchments, whether voluntary or involuntary, typically include a severance package. The basic calculation is one week’s salary for every year of service. Sometimes, in voluntary retrenchments, employers may offer higher amounts. Severance pay is taxable according to the Retirement Lump Sum Tax table, with a R550,000 tax-free threshold available if it hasn’t been used for previous retirement...

But how much do our immediate lifestyle decisions—like buying that dream car—impact our long-term financial health? Let’s take a closer look, using cars as an example, because they’re a highly emotional (and very expensive) purchase. The Dream Car Dilemma Let’s say my dream car is a VW Tiguan. I went online to build my ideal version, and here’s what I found: the base price of a brand new VW Tiguan 2.0 TSI is R861,600. But of course, I wanted some extras—upgraded paint, rims, a better sound system, a sunroof, and safety features. Throw in a sports package, and my dream car now costs a...

The Basics of the Two-Pot System Purpose: The main goal is encouraging people to preserve their retirement funds. A new “Savings Pot” will be added to your retirement fund, allowing one annual withdrawal (with a minimum of R2,000). Implementation: As of 31 August 2024, your retirement fund’s current value will “vest,” meaning it keeps all the existing benefits. Ten percent of this vested value (limited to R30,000) will be allocated to the new Savings Pot. Contribution Split: Starting 1 September 2024, your retirement contributions will be divided: one-third goes into the Savings...

If you support your parents, adult children, and even grandchildren, you’re part of the Sandwich Generation. Balancing these responsibilities while planning for your secure future can seem nearly impossible, and managing savings, bond repayments, credit card debt, school fees, and frail care can be financially and emotionally demanding. It may be time to check in with yourself:Can you afford to support children who should be supporting themselves?How does this affect your current living expenses and future retirement savings?How is balancing the needs of multiple generations affecting...

I have found that one of the main contributors to these complexities is what I’ve termed financial maturity. When I speak about financial maturity in this context, I am talking about the beneficiary’s understanding of the value of money, how far it can or can’t go, their real-life experience with money, and whether they are capable of making informed decisions while considering the long-term implications of those choices. It also means feeling comfortable and content. The Emotional Complexities of Inheritance I have helped clients who received money from relatives with whom they had...