Family Day - the perfect time for family financial planning

Johannesburg - Every year, March and April remind us to step away from the daily grind and focus on what really matters. The long weekend (or weekends, if you're lucky) may be a time for laughter, lekker braais, and making memories with our families. It's also the perfect time to think about the future. What will happen to your family if you're no longer around? How can you make sure they're financially secure no matter what happens?

Bertie Nel, Momentum Head of Financial Planning and Advice, says protecting your family's financial security isn't just about money - it's about ensuring they have the stability and opportunities to thrive long after you're gone. "Family wealth planning goes beyond having a legal and executable Will. It's about creating a lasting legacy and ensuring financial freedom for your loved ones. The right financial plan can give your family the security they need to succeed," says Nel.

Avoid complications with proper estate planning

A staggering number of South Africans don't have a valid Will in place. Without it, your family could be left trudging through a legal nightmare during their time of grief. "Beyond a legal and executable Will, a clear estate plan will ensure your assets go to the people you intended, leading to a costly and emotionally taxing legal process," explains Nel.

According to him, an estate plan help ease the transfer of wealth when tragedy strikes. When done well, and with the right advice to back it up, this plan will reduce the chances of disputes among family members. It's about more than just your money; it should include your home, investments, business interests, and even cherished family heirlooms. Nothing should be left to chance. 

Talking about money

Many families avoid talking about finances, but open conversations can prevent misunderstandings and financial mismanagement down the line. Nel advises holding a family wealth briefing where all members understand the long-term financial plan and how wealth will be managed.

"Each generation sees money differently, so being on the same page is crucial. Helping younger family members understand financial basics and smart investing early on can set them up for a stronger future, so it literally pays to have these conversations," says Nel.

Building a financial safety net

Life is unpredictable, and emergencies can happen at any time. When considering financial safety nets that will help you and your family through tough times, Nel suggests talking to an accredited financial planner about the elements every financial plan should include, like:

• An executable Will: Review regularly to ensure proper transfer of assets on death.
• Life insurance: To protect your loved ones from financial hardship if something happens to you.
• Medical aid and gap cover: Ensures you and your family have access to quality healthcare.
• An emergency fund: To cover unexpected expenses and keep the family budget intact.

"As people, we love to focus on the here and now, but long-term planning is just as important. That's why a good financial adviser can help you build these safety nets and tailor them to your family's unique needs," explains Nel.

The power of professional advice

Financial planning can feel overwhelming, but you don't have to do it alone. Working with a qualified financial adviser can help you navigate complex decisions and create a strategy that aligns with you and your family's goals.

"If you want to build generational wealth, professional guidance is essential. A financial adviser can help you structure your finances in a way that provides long-term security and allows you to enjoy the present," says Nel.

Make Family Day count

While you're enjoying the holidays with your family, it's time to think ahead. "Take a moment to think about their future. Have those important conversations, review your financial plan, and consider getting an expert adviser in the mix. Taking action today will lay the foundation for your family's legacy as one of strength, stability, and lasting prosperity," concludes Nel.