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Your Estate Planning Journey: Life Stage Planning

Nothing is guaranteed except death and taxes. Life is unpredictable and you never know what the future holds – this must mean it is impossible to make appropriate plans, right? Not actually. 

The right estate planning tools at the right time in your life can ensure that you, your family and your business are protected under any circumstances. No matter what life throws at you, there is a way to make sure you are financially prepared. Read on to learn how Maysure Financial Services can work with you to secure your future. 

What Is Estate Planning?

At its core estate planning is about taking control of the uncontrollable elements in your life. Whether you are getting married, suffering from an unexpected disability, or facing the harsh reality of death, a properly planned estate ensures all your affairs are in order. 

Merely communicating your wishes to your loved ones or business partners is not enough, nor is it legally binding. Without a well thought and easy to execute estate plan, you could put the things you care about the most in jeopardy. Your business, your assets and, even your children could end up in the wrong hands if you don’t prioritise estate planning. 

An estate plan takes advantage of the laws in place and helps you control what happens to your assets. Essentially this type of plan makes sure that your intentions are carried out in a way that you deem fit. 

When Should You Start Estate Planning?

Some people believe that you should wait until later in life to start planning your estate. Nothing can be further than the truth, estate planning is so much more than just making sure you have a secure retirement. You should start as early as possible, but also keep in mind that starting later in life is better than not starting at all. 

All major life milestones can trigger the beginning of your estate plan – getting married, having a child, losing a loved one or even acquiring a substantial asset are all possibilities you need to think about when considering how to plan your estate. 

Begin your estate planning today and update it regularly throughout your life.That way you can always ensure your assets are directed to the proper beneficiaries.  

A Plan For Life: The Different Stages Of Estate Planning

When you are planning your estate the products you choose depend on where you are in your life. It’s essential that you plan for every eventuality. Your loved ones need you to think ahead. 

In Your 20’s and 30’s

The early years of adulthood are when your life truly begins. So many life-changing events tend to happen in our 20’s and 30’s. Following certain financial rules in your early life will help you to maintain your standard of living no matter what happens to you. 

Perhaps you’re getting married, under these circumstances you would want to ensure that your spouse is comfortably provided for, so while it may seem premature having your will in order is something that is essential at this stage of your life.  

Saving for retirement is a financial must. While it may seem unnecessary now your future self will thank you later.

In Your 30’s and 40’s

At this stage in your life, your income is vital to your’s and your family’s wellbeing. Protecting that income in the event of death or disability is crucial for your loved ones. Products such as life insurance can provide for your family when you are no longer able to

If your family has grown, you’ll also want to update your will to correctly allocate assets. Proper estate planning allows you to choose the people who will raise your minor children if you and your spouse both die prematurely.

Perhaps you’ve started your own business and want to make sure your partners are properly protected? Talk to your financial service provider about products like Buy and Sell Agreements that can protect the legacy you worked so hard to create. 

Your 50’s and Beyond

Hopefully, by this stage in your life, you have secured a substantial nest egg for your golden years. And while it is time to reap the benefits of good financial planning, this is also the time when you should be considering what happens to your assets in the event of your death. 

Ensure that chaos does not reign following your death (especially if your death is unexpected). The last thing you want is tension amongst your heirs. This is the time to make sure your family’s survival is not at risk.

Plan Your Future Today 

Planning your estate doesn’t have to be complicated. To date, Maysure Financial Services has helped countless people of all ages, career statuses, and life circumstances develop the perfect estate plan. 

Begin working on your estate today. Call our team to discuss the particulars of your estate plan. 

Contact us here:

+27 11 839 2302

info@maysure.za.com

Maysure Financial Services is a registered financial services provider. FSP 15173

624 407 Maysure Financial Services

Shariah Investments & Ethical Investing

At first glance, Shariah investments can appear to be quite complex. These assets contain various rules and limitations based on the Islamic faith that governs over all aspects of Muslim life.

These principles state that for any financial service or institution to be considered halaal, their products must adhere to these specific values of social responsibility set out in the Quran. These values speak to transparency, fairness, and accountability.

We are here to help you understand more about the importance of Shariah investments and ethical investing, what options are available to you, and how we can help.

Shariah Investments: An Introduction

Money being saved in box

The Kagiso Islamic High Yield Fund is just one example of an Islamic investment fund that is Shariah-compliant. This fund provides both capital stability and ethical transparency at moderate levels of risk. It also gives much-needed variety to today’s available range of Islamic finance products.

Shariah-compliant investment is different from conventional investment funds. In your traditional investment fund, investors expect to accrue interest over some time, however, in Islamic investments, interest (‘Riba’) is prohibited.

Instead, customers and banks invest and share in profits equally. The risk is shared and thus the impact is lessened, which makes these funds far less volatile than your ordinary investment fund.

It’s important, as an Islamic and Muslim investor, to make use of Shariah-compliant companies when establishing your Shariah portfolio. These companies must adhere to the standards set out by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This body ensures that Islamic investment products maintain Shariah values across all their financial services.

Contact us to find out how you can ensure Shariah compliance throughout all your investments.

Shariah Investments: Importance

prayer and meditation from top

As this industry continues to grow and develop, it becomes vital to share with all of our clients the value and benefits of Shariah investments. In recent times, these funds have gained popularity with other groups outside of the Muslim faith. This is because of a recent surge in the demand for ethical products.

Groups of all faiths, and non-faiths alike, share similar values with Muslim investors when it comes to seeking socially responsible investment solutions, which adhere to environmental, social, and governance (ESG) criteria.

This is what makes Shariah-compliant investing appealing for Muslim investment and beyond. It’s not only beneficial to the Muslim community, but also the rest of the modern world as it caters to these shifts in moral codes and spiritual values.

This is why ethical investing is becoming more prevalent and sought after. Ethical investments provide investors with the ability to generate profits from their invested funds while still ensuring that their moral compass is pointing in the right direction!

Shariah Investments: Requirements

man's hand on trowel gardening

For a fund to be considered Shariah-compliant, it must adhere to the rules set out by the AAOIFI (as guided by the Islamic faith). This organisation helps to ensure the ‘standardisation and harmonisation of international Islamic finance’. It is a guiding body that tries to create uniformity across all Islamic financial sectors.

Within each investment organisation, there must exist a Shariah Supervisory Board, which directs and monitors all Shariah-compliant funds. This ensures financial products are lawful for Muslim consumers.

These boards and regulators allow investors from the Islamic faith to better screen potential new investment opportunities, ensuring these match the rules of their faith.

Shariah Investing: Restrictions

Abundance of treats and desserts

The Shariah supervisory boards and regulators also regulate financial product restrictions and allowances.

Products are not considered Shariah-compliant if they derive majority income from: 

  • Alcohol, tobacco, and pork
  • Production of weapons of mass destruction
  • Conventional financial services and leisure/media
  • Pornography and gambling

Shariah-compliant products include:

  • Equity funds
  • Real estate funds
  • Commodity funds
  • Bonds

The restrictions are wide-ranging and subtle in some cases. As a result, the lines can blur between what is considered Shariah-compliant and what is not. 

It can be a confusing experience to try and navigate Shariah compliance and Islamic investment products alone. As a Shariah-compliant company, our financial advisors are highly knowledgeable about Shariah investing. We can assist you to secure the right funds for your ethical requirements.

Please do not hesitate to get in touch to find out about Shariah investments and ethical investing.

+27 11 839 2302

info@maysure.za.com

Reviewing your financial health feature
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Reviewing Your Financial Health

It has never been more important to set goals to secure your financial health than for the upcoming year. If we can take supplements and exercise to safeguard our physical health, and work with others to improve our mental health, how can we look out for our financial health?

The best way to do that is by actively reviewing your current financial status. If your goal is to achieve healthy finances, there are a few key ideas that we recommend as a starting point. This post will explore the ins and outs of financial health and share some important tips on how to improve yours!

What Is Financial Health?

Businesswoman writing on wall

Before we can begin to review your financial health, we must first understand what financial health means. Some describe it as individuals having sufficient cash flow for what they need and want, now and in the future.

This means knowing your current financial status, and whether or not it’s been meeting your wants and needs. So, take the time to examine your cash flow and ask yourself: does this satisfy my wants and needs?

Why Is Financial Health Important?

Young plant rising from the ground

This leads onto our second key idea, understanding why financial health is important. Much like the importance of planning your retirement, it gives an individual the opportunity to structure their finances to cater to their current and future circumstances.

This is especially important in today’s environment where every day can present a host of unknown variables. It’s essential to educate yourself about your finances, and to revisit this annually to adjust it to match your changing attitudes and goals.

Contact us if you’d like some help with your financial planning. We have a proven track record in helping our clients turn around their financial health.

Our client *Imraan had unstructured finances before he began his journey towards financial health. Since he has begun working with us at Maysure Financial Services, he says he is reaping the benefits of “better investment decisions, improved yields, a positive lifestyle adjustment, and financial happiness”. The right financial advisor will help you achieve these benefits and shape your wealth so that it works for you.

How Can We Achieve Financial Health?

Now, you might be wondering where to start. Luckily, we have provided four steps to help you effect successful and productive financial changes.

1. Determine your net worth

This is as simple as minusing your total liabilities from your total assets. To begin, you will need to calculate your total assets. This is anything you currently own, such as your house, your car, or other investments. Liabilities are any debt that you owe to a third party such as loans, shopping accounts, or credit card debt.

Here is a useful application to help you calculate your net worth. For those that like a working example, here’s one for you: 

Let’s say you own a car worth R160 000 and a house worth R1 200 000, this would bring your total assets to R1 360 000. For calculating liabilities, let’s say you owe around R500 000 on your house, and you have an outstanding debt worth R25 000, this puts your total liabilities at R525 000.

A formula would look like this: total assets – total liabilities = net worth. Your net worth could be negative or positive. Either way, this means you have an idea of where your finances sit and can start to evaluate your financial health.

Calculator and pen and document

2. Calculate your debt to income ratio

Now, let’s look more closely at your monthly financial status, which is your debt-to-income ratio. In basic terms, this means how much you owe each month versus how much you earn each month.

For example, if you pay R10 000 on your house bond and R2 000 on your shopping account, and earn R24 000 then your ratio for each month would be 1:2. This makes it around 50 percent. You want your ratio to be much lower, i.e. you want your ratio to be at around 20 percent, which means your debt takes much less than half of your income.

Happy, neutral, and sad faces on paper

3. Work with financial goals

Once you understand more about your financial status, you can start to set some goals about where you want it to be. This means being realistic about your monthly budgets, and ensuring that you’re not spending more than you earn. The goal here is to be able to have a steady cash flow so you can afford all your needs and wants, meaning you gain good financial health.

Effective budgeting ensures your financial resources are sufficiently distributed to cover your wants and needs. At this point, it is also very useful to seek out the assistance of your financial adviser. We can help you to work on an investment plan. Both of these in tandem will help to keep track of your spending while growing your wealth.

Saving is not as simple as just putting money away for a rainy day. It’s crucial you choose your investment accounts thoughtfully. Consider having multiple investment accounts that cater to various needs, for example, tax-free investment isn’t intended for emergency funds, but is useful for long-term investment.

4. Take a moment and enjoy your financial health

It’s easy to get bogged down with trying to save money and allocate your wealth responsibly. But, remember that it’s just as vital to enjoy your wealth by budgeting for those getaways and personal spoils. It’s possible to enjoy your finances once you have a realistic idea of your net worth, your income-to-debt ratio, and long-term goals.

This doesn’t mean allocating half of your monthly earnings to lifestyle expenses, after all, lifestyle inflation can become costly in the long run. But, rather allow yourself calculated luxuries that will still help you maintain your financial health status.

Man in bathing costume jumping into lake

Final Thoughts on Financial Health

Financial health is an important aspect of living that you can learn to make work for you. By reviewing your financial health, you can get more realistic about where you are and as a result, start to plan for where you want to be. Now and in the future. We are here to help you tackle ‘the how’ of financial health and make your money work for you.

Please do not hesitate to get in touch to find out how to make your money work for you:

+27 11 839 2302

info@maysure.za.com

794 493 Maysure Financial Services

Retirement Planning: 5 Ways to Push through the Pandemic

Covid-19 has reshaped the way we look at finances and retirement planning. We can’t deny that the pandemic has caused hefty economic damage and that people are feeling the pinch. But, luckily, this doesn’t mean our retirement planning has to take a backseat. 

We don’t have to give up on our dreams of spending our time how we choose. With a bit of forward thinking, we can set actionable retirement goals, even during this uncertain period. This post will take a look at some of the ways we can safeguard your future.

1) Feelings Are Not Facts

How we think and feel affects the way we behave when making investment decisions. These cognitive and emotional influences are known as behavioural biases. In uncertain times, such as these, where we are surrounded by negative news and fearful chatter, it’s important to understand that feelings are not facts. 

Don’t panic. Do some research into where your funds are invested. Pension fund investments are strictly regulated. And, investment managers have to diversify your investments, meaning that you won’t have all your eggs in one basket. The important thing is to keep calm and not make impulsive decisions. 

Not everything is a worst case scenario. For example, some pension funds have 75% of their investments in equities – 30% of which is invested offshore. If you think about how the rand has declined in value against the US dollar, then that 30% of the portfolio may have increased positively. 

2) Work From Home

One of the biggest benefits of the lockdown (financially anyway) has been the reduction in transport expenses. The nationwide quarantine confined all South Africans to their homes. Although this was a difficult period, many workers enjoyed unforeseen savings of up to R3 000 from petrol costs.

People who have jobs that are compatible with a virtual workplace should approach their employers and ask for dispensation to work from home. By doing this, you can continue to save on transport expenses and put these to better use – towards your financial future. 

3) Remember The Long Game

Trust in the process. Many people, in the run up to retirement, may have already set out a route and ‘bigger picture’ with their financial advisor. It’s vital that we don’t throw away this plan on a whim. 

A thought-out and diversified portfolio is an effective shield when facing turbulent times. Investors will benefit from a wide range of local and global assets in their portfolios. We can’t predict the direction of equities, but having a broad asset class diversification protects investors; pre- and post-retirement.

4) Extend The Timeline

Not all of us want to extend our work careers. But there are major advantages for doing so. Every year that you continue working is more time to build your savings. It also decreases the number of years where you will be covering your expenses with your precious savings. 

The digital age has encouraged an environment of learning and instant communication. You can even go digital with your financial planning! This means you have a huge variety of resources at your fingertips. Register for online courses and strive to stay relevant in your industry. Learning is also an important contributor to mental health. 

5) Reprioritise – What’s Really Important? 

Many of us harbour an appreciation for luxury and exclusivity. This can stem from a desire to secure the best things in life for you and your family. The lockdown gave many of us time to reflect on our home situations and what’s really important. Family, health, lifestyle, relationships, travel…These were all concepts that were rendered fragile and priceless during the lockdown. We became concerned for our wellbeing and our material goals fell by the wayside. 

Whether it’s private education for your teenagers or high-end goods, take some time to reassess the financial commodities and values you uphold most in life. The lockdown has presented an incredible opportunity for us to look at our high-consumption lifestyles and think about the meaning we attach to our lives and those around us.

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Effective retirement planning is essential for your future. We can assist you in achieving financial freedom by accumulating the funds necessary to secure your future. 

Contact us today to discover more about our retirement planning. 

+27 11 839 2302

info@maysure.za.com

1024 683 Maysure Financial Services

Moving from a Bull to a Bear Market

The Maysure logo has a bull and a bear in it. This is no mistake.

The two animals which make up our icon illustrate how we partner with our clients during the good, the bad and the ugly when it comes to investing their money. Developing wealth over the long-term can feel overwhelming at times, especially in times of crisis, so its important to have a planning partner who understands your personal needs.

Long-term investing can be dauting and looking at a market such as the one we currently find ourselves in, every instinct can be to get up and run. To pull out all your investments because watching them dip dramatically is too much to handle.

When it comes to your current long-term portfolio, its important not to make any rash decisions without speaking to your advisor. A market like this might seem dangerous and terrifying, especially when it comes to your long-term investments, but all throughout history these are the markets where waiting it out for investors has worked out.

We currently find ourselves in what we would call a bear market, and having just been in a bull market, things can feel upside down.

A bull market is on the rise in a stable economy, and it feels safe. A bear market is unstable with stocks declining in value as the economy is receding.

One of the most iconic investors of our time, Warren Buffet made most of his money in a bear market. He is famously quoted on saying

“The investor of today does not profit from yesterday’s growth.”

“Be fearful when others are greedy and greedy when others are fearful.”

What goes down must come up, and when it’s down the price and value you pay for certain stocks and investments means that ultimately, when they go up again you will have more value in your stocks than you would have had if you purchased them during a bull market phase.

We believe now is the best time to consider investing in the Sygnia Life Berkshire Hathaway Fund.

This innovative and low-cost fund gives South Africans access to the global investment powerhouse Berkshire Hathaway Inc. Run by two iconic executives: Chairman and CEO Warren Buffett and Vice-Chairman Charles T. Munger.

More on the fund

Berkshire “A” shares are valued at over four million rand per share, this means that the stock has a high average annual growth rate. It was previously closed to a small group of investors, but you now have the opportunity to invest in this fund through the Sygnia Life Berkshire Hathaway Fund.

Investing in a fund developed by someone who made his fortune off of markets like the one we are in, betting on that fund at a time like this could pay off.

Being in a bear market is ideal for someone who wants to invest and is prepared to ride the wave.

Get in touch with us if you would like to know more about this fund.

If you would like to discuss this further, feel free to get in touch with us.

☎️ +27 11 839 2302

📧 info@maysure.za.com

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Offshore Investing

Offshore investing may sound daunting to first-time investors and may still seem rather complex for the avid investor, but we are here to help you understand what it is, how it can benefit you, and the best way to go about it.

Essentially investing offshore gives you the opportunity to tap into different economies and regions, as well as access industries and companies that aren’t available to invest in within South Africa.

While global investment may seem like a better idea considering the current economic climate, investing offshore doesn’t mean that you will get the most bang for your buck. Returns depend on current global economic conditions and exchange rates, which you can prepare for together with your financial planner.

The benefits of offshore investments include:

  • Reduced risk because of the diversified portfolio
  • Access to a wider range of investment opportunities
  • The ability to grow your money across global industries, companies and currencies not available in SA

When you spread your money across various markets and currencies, you minimise the impact of currency depreciation, political factors, market trends and events, which can have a sizeable impact on growing your wealth. Taking a portion of your investment out of the country means that capital loss risks are minimised as greater diversification is a key element in reducing risk when it comes to financial investments.

One of the major benefits of investing offshore is that you can reduce the emerging market risks that come when investing locally. SA remains an emerging market regardless of all the first world investment industries available to local investors. We are still a small fish in a big ocean, with an open economy that is illiquid and has a consistently volatile stock market.

A long-term view is required to fully benefit from offshore assets’ return potential. While investing offshore can seem attractive, it’s important to consider where the return from investment could come from, the exchange rate and/or the underlying foreign investment. The impact of the exchange rate needs to be strongly considered when it comes to foreign investment.

What is the best way to go about investing offshore?

This all depends on you as we believe that no two lives are exactly alike. We would need to look at your personal circumstances, risk profile and your long-term planning goals.

The answer depends on investors’ personal circumstances, risk profile and longer-term financial planning objectives.

If you would like to discuss the potential of investing offshore, get in touch with us and we can talk you through everything you need to know.

☎️ +27 11 839 2302

? info@maysure.za.com

1000 576 Maysure Financial Services

Retirement Planning: A Goal We All Hope To Achieve

Retirement is something that most of us have dreamed about since our youth. Perhaps you envision traveling the country and soaking up the best that South Africa has to offer. Maybe you want to whittle away your days at a house on the dam, fishing and enjoying nature. Regardless of what ideal retirement looks like for you, retirement is a goal we all hope to achieve.

Just wanting and dreaming to be retired isn’t enough. In order to retire and actually enjoy your time in retirement, you need the right amount of money saved, invested, or otherwise available once you stop working. The exact Rand amount you need to retire will vary greatly depending on your personal needs. It may seem incredibly daunting to be saving for an extended period in your life where you will have no steady income, but don’t worry, with a bit of sound advice and planning, the retirement of your dreams is well within your reach.

According to the national Treasury, only 6% of South Africans can afford to retire comfortably – and this figure has been the same for the past 25 years, which means that people are simply not planning for their retirement properly, leaving them and their families high and dry.

If you want to have a successful retirement, you need to figure out what that means to you. Do some life planning for retirement, set goals and create a plan that allows you to achieve your retirement goals. Here are some handy tips to remember when making your retirement plans that include financial freedom.

  • Start saving at your first job – Beginning to save for retirement in your 20’s and 30’s allows you to start generating valuable compound interest that will accumulate over decades. Tucking away even a small amount will get you into the habit of saving for the future. Don’t worry if you are only starting to save later in life, starting at any time is a step in the right direction. Remember, the best time to start saving for your retirement was yesterday.
  • Save with every salary cheque – Create a monthly debit order right from the start. If you make saving automatic, you won’t be tempted to spend it or forget to make a contribution.
  • As you earn more, pay more – As your income grows, increase the amount you contribute to your savings. Some saving plans even offer automatic escalation, which will gradually increase your contribution amount over time.
  • Avoid unnecessary fees – Some retirement and investment accounts often charge fees for breaks or early withdrawals. Get to know the rules so that you can avoid triggering fees and penalties.
  • Pay off your short-term debt – Your retirement investments should not be used to pay off debts that you acquired during your journey. Short-term debt is one of the things that could derail retirement planning, so paying it off properly, and without dipping into your nest egg is important. Contact us on how best to do this.

The most important part of retirement planning is understanding that it is a life long commitment. Nurture your investments, if you luck out on a major windfall, contribute a portion of that to your savings, keep up to date on interest rates and ask for advice on potential income generating investments.

We want you to live your very best life, at every single stage. Let us assess your financial planning to ensure that even though you might be planning for the best future possible, you are still able to live your very best now. With sound financial advice it truly is possible to have the best of both worlds.

Contact us today.

? 011 839 2302

? info@maysure.za.com