It is quite ironic that we celebrate Worker’s Day and Mother’s Day in the same month, as here in South Africa we have many working Mums, and sadly many of these are single working Mums too.
You may be lucky to be a working Mum who is working simply to add a financial contribution to the family coffers and you can partner with your spouse when seeking to build your financial future together. There are many advantages to having a dual income and you need only speak to a good Financial Advisor to find out about several ways to ensure you are not paying too much tax and investing in the right areas.
These Working Mums have a very good chance, given the right advice and ensuring they adhere to the principles of financial discipline and determination to succeed, of retiring not just comfortably, but well.
Single Mums face challenges
Single working Mums may find things a little more challenging but certain Financial principles can assist you in making sure you take care of your kids and can still aspire to retire with enough money to live well.
Basic covers
Mums’ natural instincts to put their kids first can be satisfied by having a few important things in place at the outset. A good Medical aid or even hospital cover plus gap cover will ensure that if there are major health issues you are protected.
You may be lucky enough to be employed in a job that has medical aid and pension covers in place, but if not, or you are an entrepreneur, you need to make sure you cover your family for these things and a good word of advice on the pension side is to work with a Financial Advisor to organise a tax saving pension plan like Retirement Annuities which save you on tax and build your wealth quite substantially.
As you are the sole breadwinner, it is also important, as soon as your budget allows, to have Critical Illness and Income Protection in place too.
Life and Death
The most affordable policy you can take out and which pays out the most, in the end, is Life Cover. It pays your family immediately when you are gone because it isn’t generally subject to being included in your estate and therefore assists with funeral costs as well. It’s usually
affordable for everyone and is essential. Also, having a legally drawn-up Will is vitally important and it can also be obtained very cheaply (or for free) and ensures that your children are properly protected when you are gone.
Work with a Financial Advisor
These are just basics that you need to have in place as a Mum, but you deserve to have the plan to create enough wealth to retire comfortably too – and you can! Financial Advisors don’t only work with the rich, but anyone who aspires to be rich and retire well, so take it from us working Mums don’t need to work harder, no, they just need to be smarter with the money that they can save and work with a good Financial Advisor to customise their wealth creation strategy.
At Hereford Group we are renowned for looking at every individual and business as a unique entity and creating a wealth solution tailor-made to their personal circumstances. Whether you are a working Mum creating wealth with a partner, or a single working Mum, facing your own unique challenges, talk to us today – we have a solution for you. Can working Mums retire well too? You bet they can!