Maya on Money

We asked many single moms what their greatest concerns were regarding drawing up a will. Host Maya Fisher-French asked fiduciary expert Deenisha Nadesan of Capital Legacy to answer them.

For most moms, their concerns were around who would look after their child, who would manage the money on behalf of the child, and whether they had enough to provide for their living costs and education.

We covered all the questions you need answers to including:

·       Can I leave a property to my child
·       What makes a will valid
·       What happens to my pension fund?
·       Can I nominate someone other than the biological father as guardian 
·       How does a testamentary trust work, and how is it different from a beneficiary fund? 
·       How much does it cost to draw up a will
·       Who should be the executor

While this was a discussion about single moms, it is relevant to any parent. 

Click here for the Single Mom's Guide To a Will. 

In the latest episode of the Santam Insure Your Future Money Bootcamp, we discuss the sensitive topic of debt. While we all need credit, especially to purchase a home or a car, if it is not managed carefully, it can become a debt trap which undermines all our other important financial goals.

Brian Mphakoanyane from Summit Financial joins hosts Maya Fisher-French and Mapalo Makhu to explain credit scores, good and bad debt, and what to do when debt becomes unmanageable. 

The conversation delves into practical strategies for managing debt, understanding creditworthiness, and the importance of maintaining a healthy debt-to-income ratio. Brian shares insights on debt review, its pros and cons, and the significance of creating an emergency savings account while under debt counselling. 

This episode is not just about understanding debt; it’s about empowering listeners to take charge of their financial futures. By providing practical tips and expert advice, this episode provides information to reassess their financial habits and make informed decisions. Tune in to gain the knowledge you need to transform your financial situation and pave the way for a brighter financial future.

People are surprisingly confident about their retirement plans, so why are so many people underfunded?

In the latest Retirement Reimagined episode, host Maya Fisher-French and Ester Ochse, head of Integrated Advice at FNB, unpack why confidence does not mean preparedness when it comes to retirement.

While 25-27% of South Africans feel confident about their retirement preparedness, only 10% can actually afford to retire comfortably. This disconnect becomes even more pronounced with age – younger people display the highest confidence levels, yet this optimism crumbles as reality sets in during their 40s and 50s.

This is because people seldom have a retirement plan with specific goals and objectives. Most of the time, it is just a belief that because there is a retirement fund, whether that is through an employer or a retirement annuity, it will be enough.

Not investing enough and cashing in when changing jobs all negatively impact retirement outcomes, yet the wrong investment choices can also impact your ability to reach your retirement goals. Fixed deposits and savings accounts, while feeling "safe," are actually eroded by inflation over time. 

In this episode, Ester discusses how to ensure that your retirement plan will deliver decent retirement outcomes, what type of investments are appropriate for retirement, and the importance of understanding how much is enough.
 
For more information on the retirement survey, click this link. 

In this episode of the Insure your Future Money Bootcamp, hosts Maya Fisher-French and Mapalo Makhu discuss the financial journey of one of Maya's mentees who is in the process of buying her first home. They share practical insights and personal anecdotes that highlight the importance of thorough financial planning before making such a significant purchase.

Understanding the Costs of Homeownership
Maya and Mapalo emphasise the importance of not rushing into homeownership and instead taking a calculated approach by evaluating current expenses and potential new costs. The mentee has been diligent in budgeting, ensuring she understands the costs of levies, utilities, and maintenance before making an offer on a property.

Key Considerations for Homebuyers
The hosts outline crucial factors to consider beyond personal budgeting. They stress the importance of obtaining levy statements and understanding the financial health of the body corporate, as well as the need for a home inspection to uncover potential issues before moving in. They also touch on the often-overlooked costs such as rates and taxes, which can come as a surprise to new homeowners.

Navigating Mortgage Options
Maya and Mapalo highlight the necessity of shopping around for the best mortgage rates, advising listeners not to be tied to their current bank. They discuss the benefits of using a bond originator and the potential for banks to offer 110% mortgages for first-time buyers, covering both the purchase price and additional costs.

Final Thoughts
Listeners are encouraged to run the numbers, consider all associated costs, and make informed decisions to ensure homeownership is a positive experience rather than a financial burden. 

Join us for an insightful conversation that empowers you to take control of your financial future and make informed decisions on your path to homeownership.

As retirement approaches, many people find themselves grappling with the reality of their financial plans – or lack thereof.  

In the latest Retirement Reimagined episode, host Maya Fisher-French and Sizwe Nxedlana, CEO of FNB Private Segment explore the increasing trend of individuals pursuing second careers or side businesses as part of their retirement strategy. With many people finding themselves in a position where they need to maintain their lifestyle post-retirement, the idea of working longer or starting a new venture is becoming more appealing.

Retirement Readiness and Challenges

A staggering 90% of respondents indicated they feel unprepared for retirement. Maya and Sizwe discuss the implications of this statistic, examining the financial pressures that lead many to work longer, including lifestyle inflation and the need to maintain a certain standard of living. They emphasise that for affluent individuals, the challenge of retiring comfortably often stems from high expectations and insufficient savings.

Second Careers and Side Businesses

The conversation shifts to the growing importance of second careers and side businesses as integral components of retirement planning. Sizwe highlights how improved health outcomes and changing corporate norms are allowing people to remain in the workforce longer, while also exploring how entrepreneurship can provide an alternative path to financial security in retirement.

Financial Literacy and Planning

Maya and Sizwe stress the significance of financial literacy and proactive planning. They urge listeners to engage with their retirement benefits, understand their company’s retirement policies, and seek professional advice early in their careers. The episode underscores that effective retirement planning is not merely about accumulating wealth but also about making informed decisions that align with long-term goals.

For more information on the retirement survey, click this link. Don't miss the next episode, where Maya will discuss how much you truly need to retire comfortably.

In the third episode of the Santam Insure Your Future Money Bootcamp, hosts Maya Fisher-French and Mapalo Makhu welcome the Thokozani, a budgeting superhero and one of Mapalo's mentees from last year. Thokozani shares her inspiring journey from financial struggle to mastering her money management skills, revealing how a shift in attitude transformed her relationship with finances.

From Struggles to Superhero

Thokozani opens up about her previous financial struggles, where payday was met with dread rather than excitement. Discover how she overcame feelings of overwhelm to take control of her financial future. Her story serves as a reminder that anyone can change their financial narrative with the right mindset and tools.

Budgeting Techniques

Listeners will learn about Thokozani's budgeting process, which incorporates a mix of apps, Excel spreadsheets, and good old-fashioned pen and paper. She outlines how she tracks her spending across different categories and the importance of being intentional with her finances. The conversation also touches on managing unexpected expenses and the necessity of having an emergency fund.

Side Hustles and Financial Goals

Thokozani discusses her side hustle and how she utilises that income to bolster her financial security, illustrating the significance of having a clear purpose for additional earnings. The episode also highlights the importance of investing as part of a comprehensive budgeting strategy, ensuring that listeners understand the value of planning for future financial growth.

Empowering Family Conversations

Thokozani shares how budgeting has improved her finances and transformed her family's financial conversations. She emphasises the shift from a scarcity mindset to one focused on abundance and investment, paving the way for her children to engage in meaningful discussions about money.

Join Maya, Mapalo, and Tokozani for an enlightening conversation that demystifies budgeting and inspires listeners to take charge of their financial journeys. Whether you're struggling to make ends meet or looking to optimise your financial strategy, this episode offers valuable insights and practical advice to help you become your own budgeting superhero.

 For more resources and support on your financial journey, visit the Insure Your Future  Money Bootcamp website and explore the tools available to help you manage your money effectively.

This series is sponsored Santam, helping you insure your money for a better future.

Your pension fund is likely your biggest asset, but do you know your rights when things go wrong? In this episode of "Know Your Ombud," host Maya Fisher-French interviews Pension Funds Adjudicator Muvhango Lukhaimane..

If your pension fund or employer isn't treating you fairly, you can approach the Pension Funds Adjudicator at no cost – no lawyer needed. They'll even help if you haven't tried resolving issues with your fund first.

In this episode, Lukhaimane raises the importance of fund communication with many members having never even held a benefit statement. Funds are failing to share basic information about your benefits, growth, and entitlements. You should actively demand this information.

Two-pot taught harsh lessons about tax. One member expecting R15,000 from his savings pot received only R2,000 because SARS deducted outstanding taxes. Remember: all withdrawals require tax clearance, so keep your affairs in order.

Death benefits aren't automatic. Trustees have discretion based on actual financial dependency, not just legal relationships. In one case, trustees allocated 65% to minor children over adult children and spouse because the minors had greater dependency needs.

When funds place children's benefits in beneficiary funds, the default position favours competent parents managing the money. One mother successfully challenged this when the fund couldn't prove she was incapable.

But members aren't always right. One member demanded R1 million based on an incorrect statement. The ruling? You can't get what you're not legally entitled to under fund rules.

Bottom line: Stay informed, know your rights, and use free help when needed.

If you feel let down by a financial provider, contact one of these Ombud schemes:

- FAIS Ombud for financial advice disputes – faisombud.co.za
- Office of the Pension Funds Adjudicator (OPFA) for pension fund related disputes – pfa.org.za
- JSE Ombud: JSE-related issues – jse.co.za
- National Financial Ombud Scheme (NFO) for banking, credit, and insurance – nfosa.co.za

This series was created in partnership with The Ombud Council.

In this episode of "Retirement Reimagined," host Maya Fisher-French engages in a thought-provoking discussion with Lytania Johnson, CEO of FNB Personal Segment about the pressing question: Is retirement planning a luxury only for those with extra cash? Together, they explore how the financial realities faced by many South Africans often push retirement planning to the backseat, overshadowed by immediate needs like housing, education, and debt repayment.

Realities of Retirement Planning

Lytania shares insights from the latest FNB retirement survey, revealing that only 9% of income is currently allocated to retirement savings, compared to a staggering 20% spent on groceries. The conversation highlights the challenges of cashing out retirement funds, the impact of the two-pot withdrawal system, and the necessity of understanding contribution levels for a secure retirement.

Side Hustles and Additional Income

As the discussion unfolds, they investigate the rise of side hustles as a means to generate extra income and how these ventures can play a significant role in retirement planning. They emphasise the importance of changing mindsets around retirement savings, urging listeners to prioritise their future and consider the long-term benefits of investing even small amounts from side income.

Changing Behavior and Mindset

Maya and Lytania tackle the societal tendency towards instant gratification and the need for education on the time value of money. They stress that retirement should not be viewed as a distant goal but as a present responsibility that requires action now. The episode closes with a reminder that every bit saved today contributes to a more secure tomorrow.

Tune in to gain valuable insights on navigating the complexities of retirement planning and learn how to turn your financial future into a priority, not a luxury.

For more information on the retirement survey, visit the FNB website. Don't miss our next episode, where we will discuss the importance of second careers in postponing retirement and leveraging side hustles as sources of retirement income.

What is good advice? In this episode of "Know Your Ombud," host Maya Fisher-French interviews John Simpson, the FAIS Ombud, about how his office protects consumers when financial advice goes wrong – and what you need to know to protect yourself.

Real-Life Cases

Simpson shares several cases that illustrate how the FAIS Ombud holds financial advisers to a much higher standard. Advisers cannot assume a client understands the product, and any critical clauses or require specific action by the client must be highlighted by the adviser:

When Advisers Get It Right (And Wrong)

The podcast doesn’t just highlight adviser failures. Simpson provides a balanced perspective on what quality financial advice should look like and when consumers must take responsibility for their own decisions – particularly in high-risk areas like forex trading where up to 70% of retail investors lose money.

Your Financial Rights

Simpson explains how the FAIS Ombud process works: 

Protect Yourself

Simpson provides straightforward advice on how to verify your adviser’s credentials, what questions to ask before signing any financial agreement, and the simple Google search that could save you from financial disaster.

Whether you’re planning for retirement, buying insurance, or considering investments, this podcast provides essential knowledge about your rights and how to protect your financial future. Listen now to arm yourself with insider information from the very authority tasked with overseeing the quality of financial advice in South Africa.

If you feel let down by a financial provider, contact one of these Ombud schemes:

- FAIS Ombud for financial advice disputes – faisombud.co.za
- Office of the Pension Funds Adjudicator (OPFA) for pension fund related disputes – pfa.org.za
- JSE Ombud: JSE-related issues – jse.co.za
- National Financial Ombud Scheme (NFO) for banking, credit, and insurance – nfosa.co.za

This series was created in partnership with The Ombud Council.

As we dive into July, many of us feel the familiar pang of anxiety that accompanies tax season. In our latest episode, we tackle the ins and outs of tax filing. Joined by tax expert Andre Bothma, we explore why tax can feel overwhelming and how to navigate the process with confidence.

One of the key topics discussed is the concept of auto assessments introduced by SARS (South African Revenue Service). If you're employed and earning an income, you may receive an auto-assessment, a pre-filled tax return that simplifies the filing process. However, as Andre points out, just because you receive one doesn't mean you should trust it blindly. It is essential to review the details, as mistakes can lead to missed deductions or incorrect refunds.

For students and freelancers, the conversation shifts to the importance of filing even if your income is small. Many young people, especially those working in creative fields or part-time jobs, may not realise that they are required to file a return, particularly if tax has been deducted from their earnings. Filing a return can lead to a refund, making it a crucial step in managing your finances.

Throughout the episode, we also discuss the significance of understanding your status as a provisional taxpayer. This designation applies to those earning income without pay-as-you-earn deductions, such as rental income or freelance work. Andre emphasises the importance of being aware of deadlines and the potential penalties for late submissions, which can add unnecessary stress to an already daunting process.

Moreover, we delve into the various deductions available to individuals, from retirement annuities to business expenses. Understanding what you can claim is vital in reducing your taxable income and ensuring compliance with tax laws.

As we wrap up the episode, Andre provides practical advice on engaging with SARS and familiarising yourself with the e-filing system. He reassures listeners that while tax season can be intimidating, with the right knowledge and support, it can become a manageable task.

If you’re looking to take control of your financial future, this episode is a must-listen. Tune in to gain insights that will empower you to tackle tax season head-on and alleviate some of the anxiety surrounding personal finance.