When Dawn Ridler, an independent financial adviser and founder of www.kerenga.com was asked by MoneyMarketing.co.za what the top three things that make a good financial plan are, she said: “A good financial plan needs robust analysis of needs versus reality – right across the board from medical aid, tax, wills and estate plans to investment and retirement.”

New culture of splurging has emerged

But how many of us are willing to spend more money on something we can’t see – the future? Chanel lipstick, Christian Louboutin shoes or a Roberto Cavalli dress are some of the things women tend to splurge on when they have cash. But have you ever thought of how much money your material assets would be worth if you’d put all that money away in an investment policy ? Gerald Mwandiambira of the South African Savings Institute says a new culture of splurging has emerged – investments. “Things like retirement may seem like a very long time but it will come in handy one day,” he says.Investing is the new splurge (5)

According to motivational speaker and author of Heart, Mind and Money Vangile Makwakwa, “In South Africa today, only 4% of people can afford to retire. We have a population that can’t retire because they’re used to a certain lifestyle. It’s important to plan for retirement so you are able to maintain your lifestyle as you won’t be able to do that with a government pension.” Lezanne Human, FNB’s chief executive for savings, investments and fiduciary says, “From March 1, South Africans can save R30 000 a year, and R500 000 in FNB’s lifetime new tax free savings accounts.

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