Most people can only afford to retire comfortably by age 80. This sobering statistic was the focus of our latest Insure your Future Money Bootcamp podcast discussion that asked the question of whether early retirement is even possible in today’s economic climate.

In this episode, Maya and Mapalo are joined by seasoned financial planner Wynand Gouws, author of "To 100 and Beyond". They explore the realities of retirement savings, the importance of understanding replacement ratios, and the critical role of budgeting in preparing for retirement. Wynand emphasises that simply having a retirement fund is not enough; individuals must actively engage with their financial planning to ensure they can maintain their desired lifestyle post-retirement.

The conversation explores practical strategies for boosting retirement savings, including the importance of delaying retirement, managing lifestyle choices, and the advantages of tax-efficient savings. Wynand also highlights common myths surrounding retirement planning, urging listeners to take proactive measures now to avoid future financial strain.

Key topics covered:

• Understanding the implications of replacement ratios on retirement planning

• The importance of budgeting and tracking expenses for a secure retirement

• Strategies for increasing retirement savings and utilising tax benefits

• The impact of lifestyle choices on long-term financial health

• Debunking retirement myths and preparing for increased longevity

 

This episode serves as a wake-up call for those who may be underestimating their retirement needs. Tune in to gain valuable insights and actionable steps to ensure your financial well-being in your golden years!

The latest FNB retirement survey revealed that many South Africans are allocating more funds to insurance than to their retirement savings. So how do we find the balance between insuring for the unexpected while investing for longevity? This is the topic of the latest episode of the Retirement Reimagined series, with host Maya Fisher-French and guest Deepesh Desai, head of FNB Life. 

Maya and Deepesh discuss how to utilise insurance to protect retirement savings and what types of insurance are suitable once you are retired. Deepesh explains how understanding one’s unique financial situation and life stage is vital in determining appropriate insurance coverage.

Key topics covered:

• The relationship between insurance spending and retirement savings

• How insurance can safeguard your retirement nest egg

• The importance of assessing insurance needs at different life stages

• The role of legacy planning and estate liquidity in insurance decisions

• The impact of critical illnesses on retirement planning and insurance needs

• The necessity for democratising financial advice to ensure informed insurance choices

By understanding how to integrate insurance into your overall financial strategy, you can better prepare for a secure and comfortable retirement. Tune in to gain clarity on how to protect your financial future while pursuing your retirement goals.

For more information on the retirement survey, click this link. 

In the latest episode of the Money Bootcamp Podcast, we dive into the world of investing and the magic of compound growth. If you've ever wondered how your money can grow exponentially over time, this episode is for you. 

We begin by discussing the Rule of 72, a straightforward formula that helps you determine how long it will take for your investment to double, based on a fixed annual rate of return. For instance, at a 10% return, your money could double every 7.2 years, but the real magic happens when you let it compound over a longer period.

We break down the significance of staying invested, explaining how early withdrawals can jeopardise your long-term financial goals. The discussion also covers realistic expectations for returns, drawing on historical data from the Johannesburg Stock Exchange and global markets to highlight the importance of diversification in investment strategies.

This episode is packed with insights and practical advice for anyone looking to improve their financial literacy and make informed investment decisions. Whether you're a seasoned investor or just starting, there's something valuable for everyone. Tune in to learn how to harness the power of compound growth and take control of your financial future!

Key topics covered:

• Understanding the mechanics of compound growth and the rule of 72

• The impact of market performance over different time frames

• The importance of investing consistently, even with smaller amounts

• Differentiating between nominal and real returns, and why inflation matters

• Exploring tax-free savings accounts and their benefits for long-term wealth accumulation

In the latest episode of the Retirement Reimagined series, host Maya Fisher-French speaks to Carin Meyer, Product Head of Wills and Deceased Banking, about the importance of having a will, especially when it comes to your retirement assets. 

Maya and Carin debunk common misconceptions, including the dangerous belief that "only wealthy people need wills," and explore the psychological barriers that prevent people from planning their estates.

Key topics covered:

This practical episode provides actionable advice for retirees and pre-retirees, emphasising that estate planning isn't just about assets - it's an act of love that prevents family conflicts and ensures your legacy aligns with your values.

Whether you're just starting your retirement journey or reviewing your existing plans, this episode delivers essential insights that could save your family from financial and emotional turmoil. Don't let poor planning overshadow a lifetime of hard work.

For more information on the retirement survey, click this link. 

Marriage is often viewed through the lens of love, commitment, and partnership, but it is also a significant financial contract that can have profound implications on your financial future. 

In this Insure your Future Money Bootcamp Maya Fisher-French and Mapalo Makhu interview attorney and mediator Lerato Seroke about the financial and legal implications of your marriage contract. This knowledge could save you from devastating financial consequences down the line.

Many people believe that living together for a long time constitutes a common law marriage, but as Lerato explains, this is a myth. 

In South African law, common law marriage does not exist, and this misconception can expose couples to various financial risks. Without a legal marriage, partners may forfeit crucial benefits such as inheritance rights, spousal maintenance, and pension claims. 

The episode explores the three valid forms of marriage in South Africa: civil marriage, civil union, and customary marriage. Each type has its own legal implications, particularly concerning financial responsibilities and rights. For instance, a civil marriage requires registration, while a customary marriage does not. This distinction can lead to complications, especially in cases of divorce or death. 

Listeners will learn about the importance of keeping thorough records to validate a marriage, particularly in customary arrangements where formal documentation may be lacking. Lerato emphasises that individuals should document everything from lobola negotiations to communications with family members to protect their interests. The discussion also covers the different marriage regimes, including in community of property and out of community of property, with and without accrual. 

These distinctions are crucial for understanding how assets and debts are managed within a marriage. For example, being married in community of property means that both partners share liabilities, which can lead to financial vulnerability. Mapalo shares her personal experience of choosing to marry out of community of property without accrual, emphasising the empowerment that comes from financial independence. This decision allows her to build her own assets while still collaborating with her partner on shared financial goals. 

It's crucial to approach discussions about marriage contracts not as a sign of distrust but as a way to protect each other and build a solid financial future together. This episode is a must-listen for anyone considering marriage or currently in a long-term relationship. It provides valuable insights into how to safeguard your financial interests and ensure that both partners are protected. Tune in to gain a deeper understanding of marriage contracts and their implications for your financial health.

In the latest episode of the Retirement Reimagined series, we aim to understand why so many people are not saving for retirement. The results from the FNB Retirement Survey suggest that it is not just financial constraints.

Host Maya Fisher-French is joined by Bheki Mkhize, CEO of FNB Wealth and Investments, and Renzi Thirumalai, Chief Investment Officer of FNB Wealth and Investments, to unpack the survey findings, which include the immense financial pressure many individuals experience. High costs of living, such as escalating grocery bills and rising transport costs, are squeezing disposable income to the point where saving for retirement feels impossible. 

But there are also the psychological aspects of retirement planning. Humans are inherently wired to seek immediate gratification, making it challenging to prioritise long-term goals like retirement. Many face the dilemma of balancing enjoying today and saving for tomorrow. The discussion unveils how this mindset can lead to procrastination, with individuals believing they have ample time to prepare for retirement only to find themselves caught off guard as they approach their golden years.

Another significant barrier to effective retirement planning is the lack of financial literacy and knowledge about available products. Many participants in the survey reported feeling lost when it comes to understanding their options and where to turn for trustworthy advice. This gap in knowledge can lead to poor decision-making, such as cashing in retirement funds prematurely or opting for low-return savings options out of fear of market fluctuations.

The discussion highlights ways people can start investing for retirement, including automating their savings with regular increases in contributions to keep pace with inflation and rising living costs.

 Whether it's seeking guidance from financial advisors, understanding the intricacies of investment products, or simply starting to save, the message is clear: the sooner you start, the better prepared you'll be for retirement.

 

For more information on the retirement survey, click this link. 

In the latest Money Bootcamp episode, Maya Fisher-French and Mapalo Makhu are joined by a special guest, Nonhlanhla Bakasa, founder of AdoWord Multimedia, to discuss the reality of living with a disability. Nonhlanhla has been a "wheelchair rider" since the age of 12 when she suffered a spinal injury in a car accident.

Nonhlanhla provides an honest and frank insight into the challenges she faces every day, not only with the physical reality of her disability but also the financial battle. Her story highlights how inadequate the system is for those living with a disability. 

Stian de Witt, certified financial planner and executive head of Energy Financial Planning at NMG Benefits, also joins the conversation and shares his experience of clients who became disabled, and the costs involved. Stian offers some practical advice on how to find the balance between having protection in place but not being over-insured.

The conversation also addresses the emotional toll of dealing with financial administration, including claiming from the road accident fund, medical schemes, and insurance companies, and the critical need for a supportive financial team.

Both Nonhlanhla and Stian advocate for building a support system, whether through friends, family, or financial professionals who can guide individuals through the complexities of financial planning and insurance claims. This episode covers: 

In the latest episode of Retirement Reimagined, we examine what retirement means to those over 60. Using the findings from the FNB retirement survey, host Maya Fisher-French speaks to Renee Coughlan of FNB Wealth and Investment about the reality facing many retirees who feel less prepared than ever before.

 

Individuals over 60 report a lack of confidence in their retirement readiness, exacerbated by rising living costs and inflation. As Coughlan points out, the pension income that many retirees rely upon is not keeping pace with the cost of everyday essentials, from groceries to medical expenses. This stark reality has left many feeling anxious and uncertain about their financial futures.

 

One of the key themes discussed is the need to support multiple generations. Many retirees find themselves financially responsible for not only their children, but their elderly parents and even grandchildren, further straining their already limited resources. 

Throughout the episode, the hosts emphasise the necessity of regular portfolio reviews. Coughlan stresses that many people only start to seriously consider their retirement plans as they approach their late fifties, which can be too late to make significant adjustments. Regularly reviewing investment portfolios, insurance policies, and budgeting can make a substantial difference in achieving retirement goals.

 

Budgeting is another critical topic covered in the episode. The hosts share practical advice for seniors, such as seeking out discounts and rewards programs and re-evaluating existing expenses. By making small sacrifices and adjustments, retirees can free up cash that can be redirected towards their retirement savings.

 

For those under 60, the episode serves as a wake-up call to begin preparing for retirement sooner rather than later. Retirement is not just about ceasing to work; it’s about living a fulfilling life. The financial landscape is changing, and it’s essential to be proactive in planning for the future.

Click this link for more information on the retirement survey. Don't miss the next episode, where we will discuss what prevents us from planning for retirement.

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.