A good financial plan can guide you to financial independence and protect you and your family against an uncertain future. A good financial plan should encompass all aspects of your financial well-being, including the drafting of your will, which will basically be the culmination of a lifetime of careful and strategic financial planning.
Why you should have a will
“I regard the will as one of the most important documents of the financial planning process,” says Gustav Neethling, director of The Financial Emporium. When a financial plan is drawn up, Neethling notes that it is important to consider whether the client has sufficient financial provisions in place for them to reach their financial goals.
“The next thing we will look at will be to draft or update the client’s will to ensure that the client’s family and dependents are properly being taken care of. Well-known financial guru, Suze Orman, once said, ‘A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life’. This is where financial planning, including a will, comes in,” he adds.
Why you should consider a financial professional
Not everyone considers what will happen to savings, assets and investments once they die. A good financial planner should be able to guide a client through complicated issues like foreign assets, complicated divorce agreements, elaborate businesses and more.
“The benefit of using a financial services professional is that they have insight into your financial history and long-term planning,” adds Neethling.
“It is a well-known fact that only about ten percent of South Africans have a will. One of the reasons is that people believe that ‘you don’t know what you don’t know’. This is not a way to handle your finances or your future. It does not matter how bad the situation is, you will have to confront the facts, do careful planning, regroup, execute and then make provision for what should happen one day when you are no longer here,” Neethling concludes.