You think life is sorted, but is it really?

Jacques Hodsdon, one of the directors at Affluence Group, shares the importance to have a real understanding of the implications of this unavoidable topic that not many truly grasps.

This client’s interview went like this:

What’s the purpose of your policies and who are the beneficiaries?
“If I remember correctly, my wife is the beneficiary and it’s for death and illness.”

What is the current value of your two policies?
“I’m not sure, but I think it’s about R3 million.”

Do you have any debt, or have the policies been put in place to look after your family after death?
“I still have debt on my vehicles, house and business facilities. This means that in the case of death, my wife would need to start working again. As far as I know, she will inherit the house.”

Are you familiar with the content of your will and has it been updated recently? “I would need to refresh my memory on it, but if I remember correctly, my wife inherits everything.”
Do you understand the impact of capital gain, estate tax and executors fees? “No, not really well enough.”
You mentioned that you have shares in a business with a friend of yours? “Yes, with my friend Dawie*. We both have a 50% share in a gas station.”
In other words, your wife inherits the 50% share in the case of death? “No,” Jaco said jokingly, ”Dawie* would get a heart attack.”
Do you and Dawie* have an agreement in place in the case of death or if one of you become medically unfit?
“Not as far as I can remember.”

Do you have children?
“Yes, two in primary school.”
And just these few questions alone left Jaco disillusioned, as he realised that he needed professional help. Professionals, such as Affluence Group, assisted him to get back on track with his actual needs and now he has reassurance that his family will be looked after.

Jacques says financial planning is not just for fortunate people with investments and expensive houses, it’s for everyone.

The solution and needs of each person differs, but the process stays the same and requires thorough attention. “We don’t want ignorance to prevail which might be a costly mistake once your family is left behind. Maybe you also have one or two policies which you are not familiar with. Obtain professional help today, before it’s too late.”

Jacques Hodsdon – MCom Tax |CA (SA) | CFP ® is a director at Affluence Group ™ and specialises in investments, personal as well as Business Planning. Inquiries: 082-301-1332 or jacques@afgroup.co.za.