Financial Planning Frequently Asked Questions

“Wealth” refers to the money you have over and above savings for investing to make even more money.

That being said, however, wealth management reviews every facet that influences your money—such as retail banking services, legal and tax advice, estate planning—and your investments. In doing so, we can ensure that every cent is working as hard as you do.

The CERTIFIED FINANCIAL PLANNER®, or CFP®, designation is internationally recognised as the standard for financial planning professionals.

When dealing with a CFP®, you have the assurance that they are suitably qualified to provide advice at a fiduciary level.
To hold the respected CFP® status, an applicant must meet the four E’s of the profession of financial planning, which are Education, Examination, Experience and Ethics

CFP®  professionals are further required to maintain technical competence and fulfil ethical obligations. To do so, they must:

• Renewing their membership annually
• Stay in touch with current affairs in the financial planning profession by completing 35 hours of Continuous Professional Development (CPD), annually.

The stringent requirements ensure that bearers of the prestigious CFP® designation are qualified and expertly prepared to provide consumers with sound, professional advice.

The above information based on content from The Financial Planning Institute of Southern Africa (FPI) 

Advisors obsessively follow the markets and enjoy making financial projections that ensure their clients make the best decisions for their future.

Vanguard Group, the world’s largest unit trust provider (with over US$5.1 trillion in assets), reports that having an effective adviser can bolster your portfolio’s growth up to 3.0% p.a.

To be a trusted financial soundboard, an adviser must understand the client’s decision-making paradigms and emotional connection to finances. Advisers also assist with practical strategies to preserve your wealth in life-changing events such as death, disability, incapacity, retrenchment or sickness.

For these reasons, most professionals believe that financial planner provides an invaluable service.

As qualified investment professionals, financial planners help individuals and businesses meet their long-term financial objectives.

The process involves a financial planner meeting with a client to get a good sense of who they are, their goals and dreams, their risk tolerance—as a start.

They guide companies to make smart choices and assist individuals in creating a custom diversified portfolio that suits their current lifestyle and aspirations. 

If you are making enough money to submit a tax return (R79 000 p.a. or more), then it is time to hire a financial advisor. You’re never too young to start planning for your future.

A good financial advisor will look at your budget and advise investments accordingly. They should never put you in a position where you feel you are over-extending yourself. Remember that this should take the pressure off, not put more on your shoulders.

Every Financial Advisor has their own remuneration structure. For investments, advisers generally charge 0.5% to 1% of their client’s portfolio per year, and up to 3% of the portfolio as an upfront planning fee.

For long term insurance products (such as life insurance or disability cover), a commission is typically paid by the product provider. Such commission is regulated by law in terms of the Long-Term Insurance Act to avoid conflict of interest between various service providers.