With World Financial Planning Day about to kick off, we take a look at some of the reasons why you should consider integrating a Financial Planner or Robo Advisor into your wealth building strategy.
According to recent statistics quoted on the FPI website:
62% of South Africans don’t reinvest retirement savings if they are retrenched or change jobs
38% of South Africans don’t seek retirement advice
90% of people with pensions don’t monitor their investment after signing up
The average South African who has been diligent about saving for retirement, ends up only achieving 40% of their targeted income replacement ratio for their final salary
These are scary statistics for a country who has long been criticised for its poor savings habits.
What is important to note is that the Financial Planning Standards Board (FPSB) conducted global consumer research and found that only 22% of consumers felt that they would achieve their financial goals. Only 19% were successful at sticking to their financial planning strategies.
In short, South Africans are not alone.
Here are some of the reasons we think you should consider when making use of a financial planner to help you avoid falling short of your wealth building goals:
You should consider a Financial Planner if you find you are overwhelmed by the financial media and its focus on short-term market movements, “trading ideas”, cryptocurrencies or the latest fad to get rich
You find yourself regularly having to make significant annual payments to SARS – a good Financial Planner or Robo Advisor can help you identify tax savvy investments
Your total investment or brokerage fees are greater than 2.5% per annum – trading costs play a major part in deciding your investment return
You find yourself unable to budget for un-planned emergencies or your child’s education
You find yourself having to fund your holiday by tapping into expensive credit
We at OUTvest are strong believers that high-quality financial advice can make a material difference to your financial goals.
For this reason, OUTvest combined the speed and accuracy of the machine with the care and skill of the human advisor to give our clients the best of both worlds.
Our advice team are proud members of the FPI and we look forward to supporting the FPI with its noble intent of empowering 1 million South Africans with relevant financial knowledge and superior financial planning.