YOUR QUESTIONS ANSWERED

THIS FEATURE IS SPONSORED BY PSG WEALTH

Email your queries to perfin@inl.co.za or fax them to 021 488 4119

gain, this is another benefit that will be realised only in the long term, and is another reason

TFSAS are best seen as long-term investments.

Given that TFSAS are in no way limited on withdrawals, and they only run more tax efficiently than discretionary unit trusts, the first R33 000 you save annually should find its home in a TFSA (until you reach the current lifetime limit of R500 000).

Please note that any withdrawals made from your TFSA cannot be added back, which is another reason to see a TFSA as a long-term savings vehicle.

You should always consult a Certified Financial Planner professional, who will consider your personal situation, help you set financial goals and advise you on the correct portfolio construction and asset allocation to reach them. Your future self will thank you. deduction can be carried forward to the following tax year, offset against any lump sums taken, or exempted from compulsory annuity income under section

10C of the Act. This means that if, for example, you’ve contributed R500 000 to your retirement fund in the current tax year and R350 000 was deducted in the following tax year, the balance of the R150 000 can be carried forward as a deduction in that year.

It’s important to consult your financial adviser along the way, to get the right asset class exposure so that your investment provides the maximum growth in the long run.

My son and I have started a business that is really taking off. We’d like to put some long-term plans in place to set up some financial stability for ourselves, as well as my son’s children. Where should we start?

Name withheld disagreement/disputes between the family members early on

(in absence of the founder), to ensure an efficient transition of decision-making power. Every family member adds something unique and should be seen as contributing equally.

Working closely with a financial adviser will enable the family to make prudent financial decisions to assess the best financial plan for both the family and business.

My cellphone is insured for accidents with my provider, and I live in a rented security complex. I look after my possessions at home, so do I need any more insurance cover?

Name withheld

It might generally be safe where you stay, but imagine if a break-in were to happen by chance, or the geyser bursts and destroys an entire storage wardrobe of clothes and keepsakes. Could you pay to replace any lost items, or fix any damages from your current income, without going into debt or depleting your savings? Probably not. Short-term insurance provides protection so that you have a financial safety net in place.

Insurance is not that expensive for the peace of mind that you get, and cover can be cheaper if you have all your short-term insurance needs under one policy.

Focusing solely on your cellphone doesn’t mean your insurance is up to date. Jewellery, tablets and laptops are also at risk when outside of the property, so it’s always good to have all risk cover on these as well.

Never assume you’re safer as a tenant either; your landlord will not cover your contents for you. I’d suggest you chat to an adviser to be sure you get the right cover – suited to your exact needs – as soon as possible.