Travel checklists should include risk cover too!

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Undoubtedly many of you are already planning right now to get some well-earned time away in the December holidays. Time to take the family somewhere peaceful and where you can have some family-fun time to bond together. Let’s face it, we all need this and whatever risk that being away from home and travel itself carries with it, it’s well worth it.

It’s a good idea, therefore, to just make sure that you can go away with the peace of mind of knowing that you are not only covered on the journey by having your vehicle safety-checked and putting travel insurance in place but that you protect your family and possessions against the worst possible scenarios. Simply put, travel checklists should include risk cover too!

Your risk cover checklist

So, what exactly should your risk cover checklist include? Perhaps you’ll find this helpful…

  • Review short-term insurance – While you’re away, both criminals and the elements might just be at play, so ensure your short-term risk cover is adequate in the event of theft or natural disasters – and of course that your vehicle and accident insurance is up to date too. We have an excellent short-term advisory service for both individuals and businesses.
  • Long and medium-term insurance – Every year we are reminded that the road death toll is quite significant and as much as we’d like to believe that we will never be amongst these statistics it can happen. Ensure that you have good Life cover to protect your family and most importantly Income protection too for the possibility that (as is the case in many accidents) you survive but are disabled and cannot continue your work for a time. A very useful reminder is that it is only pension policies with nominated beneficiaries that payout instantly upon your death. With the courts dealing with the wrapping up of estates being so backed up that a minimum of 2 years is expected, it is important to have your beneficiaries in place and up to date in these policies – and also well-structured estate planning to try to avoid additional delays!
  • Wills and Estate Planning – On that point, obviously your Will and Estate Planning need to be up to date too and within the Hereford Group, we have experts in this field. It’s also a very good idea to keep a file of your most important documents in case they are needed and we suggest that you advise close family members and the Executor of your will where this can be found.

Your annual wealth check-up!

Before you go, why not just check in with your Financial Advisor to get assistance with this risk cover checklist and maybe have a good year-end review as well? What have you achieved financially over the past year and where will you be going with it next year? What adjustments can be made to improve things?

Watch this space for a future article on some solid financial resolutions you can make to give you peace of mind and consistent growth in the new year. In the meantime talk to us today to experience the high level of professionalism that every one of Hereford Group’s Financial Advisors is trained and expected to execute in dealing with your unique and specific financial requirements.

Travel safely – and happy holidays!

Ensuring your wealth preservation when changing your job

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Changing your job can be a far more traumatic experience than many people realise and there are several considerations to make before doing so. The COVID pandemic got a lot of people thinking about restructuring the way they did things and between redundancies and desired lifestyle changes the number of people in recent months who have changed jobs is significant.

Assuming you have made the decision (or been forced) to change your job it is important to ensure that you make the transition as painless as possible to lessen the trauma and the financial impact. Sure, some will be heading to improved circumstances, but regardless of the nature of the change, we find there is a trend for many to make a few bad financial decisions at this time. Hence these few pointers on ensuring your wealth preservation when changing your job…

Medical cannot be compromised

Compromising your medical protection is a very bad idea and it is best if you are between jobs, or particularly making a transition from a corporate employee to entrepreneur, to ensure that the medical and gap cover you had with your last employer is continued and carried on in your own name throughout any transition period.

Resist the pension fund temptation

It is found, particularly amongst younger people when changing jobs, feeling that their pension fund has not amounted to that much yet, tend to draw and spend it. This emanates from the misconception that they have plenty of time to begin a new one and they will do so at their new employer or start again as an entrepreneur, but they are forgetting the power of utilising compound interest on what has already been in place and growing.

We published an article recently on good reasons to keep the policies you have and a chat with your Financial Advisor will reveal in detail the power of continuing to grow what is already in place. Also, remember that pension drawings after the first R25,000 are subject to a substantial pay-out to SARS!

Why risk it?

If your previous employer offered risk benefits as part of a group scheme like life cover, capital disability cover, income protection, critical illness cover, funeral cover or even education cover for your young, it is prudent to keep these policies intact and have them transferred to your own name.

Although you will probably pay a little more there are a couple of good reasons for this, one being that they will not need to be medically underwritten again and the second being that you and your family remain covered during any transition period.

A time to revise and review

Whenever you undergo some sort of significant life change it is usually a good time to visit your Financial Advisor to revise and review your entail wealth profile and policies structure. This will minimise any form of backsliding and ensure that you are continuing on a growth path.

As these few points have illustrated, you need to rethink several aspects of how your entire financial position is structured, particularly if your transition is from employee to entrepreneur. If your switch is from one employer to another employer there are a number of questions to be asked of the new HR department regarding your retirement, benefits and risk policies and your Financial Advisor will guide you through this process.

Change is inevitable

Just as a Will needs to be constantly revised and updated (and this is a good time to do that too) the structure and preservation of your financial wealth portfolio have to always remain aligned to the circumstances of your life.

Hereford Group understands that change is inevitable and that’s why we are there for you, assisting with your unique financial challenges and requirements at every turn. Talk to one of our financial Advisors today to ensure your wealth preservation when changing your job – or for that matter – at any time of change!

Astute financial advice for every single Mother

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Recent statistics reveal that less than 40% of children in South Africa have Fathers living in the home. One can only surmise then that very few of the absent Fathers are making a significant financial contribution to the family budget, but even when they are, being a single Mother is tough and requires a level of resilience that those who are not in their positions can’t even comprehend.

One thing that can greatly assist them is the knowledge of how to not only survive their financial situation but to rise above this to create financial wealth and build a legacy for their children. Here then are a few wealth creation basics which we hope will be astute Financial advice for single Mothers…

Budget to create a cash cushion

Couples and single Mums face financial challenges all the time but single Mums probably will feel it a little more. It is essential that you create a budget, understanding exactly what money is coming in and what you can afford to spend. Even difficult situations become a lot less daunting if you have a plan – and your budget is exactly that.

We say it all the time and we’ll say it again – budget to save and save to invest. Even those with tough budgets usually can find something to save at the end of the month, providing they are prepared to make some sacrifices. Even at this stage, it’s a good idea to consult a good Financial Advisor who can show you how to turn that small saving into an investment that will give you good returns and can be used as a ‘cash cushion’ when really tough times arise.

Medical and income protection cannot be compromised

If you think your circumstances are tough now, imagine if you are taken ill and unable to work, or pay the medical bills. Most people know that medical aid is essential (remember if this is not covered by your employer there are excellent cheaper options like hospital cover with gap cover) but few realise the vital importance of income protection which should be a first priority. Again, talk to your Financial Advisor about this.

Retirement and tax reduction

A Retirement plan may be in place if you work for an employer but if it’s not or you are an entrepreneur then the best retirement option is Retirement Annuities (R.As). This is because there is a significant tax saving on your premiums (up to 27.5 % of taxable income) and reducing your tax burden is essential as a single Mum.

There are many other ways to save on tax too like claiming on various expenses if you are an Entrepreneur or an employed commission earner whose commission exceeds 50% of total income. Once again, remember that Financial Advisors are tax experts too, so seek their help in this regard.

Leaving a legacy

As a single Mother a first priority will usually be to ensure that when you are not around your children will be well cared for. There are 2 very affordable ways to do this. One is to ensure you have a Will so it is clear that whatever you own or have accumulated will go to your children.

The other is to take Life insurance cover which is very affordable and paid out immediately to the assigned beneficiaries, enabling them to cover funeral expenses and have an income for living expenses. Remember children under 18 cannot inherit directly though, so speak to your Financial Advisor about ensuring that the funds will be correctly administered to them.

As your wealth grows you can do more intricate estate planning ensuring that your children will have minimal tax implications or headaches when you die, and of course put tertiary education savings in place.

Grow in time – with professional help

At Hereford group we are renowned for understanding that every individual or business is unique and has different circumstances so our Financial Advisors are trained to handle every type of financial need.

Unfortunately, many single Mothers who are not big income earners think that Financial Advisors are only there to assist wealthy people but this is not the case at all. Talk to us and you’ll find out that we are there for anyone who has the desire and the determination to create and preserve their wealth. Remember that just a single seed planted in the right soil can, in time, yield a mighty tree!

Will your beneficiaries get the maximum benefits when you die?

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Just as it’s important to have an up-to-date legally binding Will in place when you pass on so your loved ones will benefit from the legacy you leave, it also matters that you make that legacy as beneficial to them as possible.

Have you ever considered what happens to your investments after you die? Only through knowing and understanding this, can you be sure that the investments you make will be of the most benefit to your loved ones.

This summarises a great article we saw on Moneyweb by Michael Haldane that posed this question and clarified some key points, so let’s see if your beneficiaries will get the maximum benefits when you die…

RAs, pension and provident funds

These make up your retirement funds – and when you’re alive you’re the sole beneficiary but on your passing any funds not accessed become payable as a death benefit. This will be the market value of the investment which will only be determined once all the funds are switched into an interest-bearing fund and all applicable charges have been deducted.

All retirement products are governed by the Pension Funds Act and one of the roles of the trustees is to ensure that your benefits are distributed fairly. This would be determined in order of the level of financial dependency of your beneficiaries.

As the Moneyweb article states “Beneficiaries are entitled to choose whether to receive their benefit as a cash lump sum, use it to purchase a compulsory annuity or a combination of the two. It is a good idea to warn your beneficiaries about the tax implications if they choose to take a cash lump sum.’’ The same applies to…

A living annuity

When alive, this gives you an income and one of the primary benefits of this over a guaranteed annuity is that you can leave the balance of the capital to nominated beneficiaries. On passing, the investment funds are automatically blocked, and the fund value is switched to an interest-bearing fund once all applicable fees have been deducted.

Unit trusts

These funds cannot have nominated beneficiaries but will form part of your estate upon your death with normal death duties being applicable. If paid to a Spouse, there are no tax implications but there can be if paid directly to children.

Tax-free investments

Beneficiaries receive the proceeds upon your death, and you need only remember that tax-free investments form part of your estate but with no executor’s fees.

Endowments

These investments are a useful estate planning tool for investors with a marginal income tax rate higher than 30%. You are the policyholder and must decide who should be the person or people on whose life the endowment is issued. This could be you or others and the endowment expires when the last assured dies.

Only at this time any nominated beneficiary will receive the funds, paid directly to them without the estate being wound up. The endowment, as part of the estate, is subject to estate duty but not the executor’s fees.

Let us take care of your legacy

Whether it is through astute advice on Estate planning or on the investments you make and how to structure them so that your beneficiaries get the maximum benefits when you die, Hereford Group understands that everyone is unique, and theirs and their loved ones circumstances are different.

Talk to one of our knowledgeable, qualified Financial Advisors about structuring the best possible wealth profile for you and your loved ones as you live your life through all its ups and downs, into retirement and beyond the living years, by maximising the benefits of the legacy you create.

Good reasons to keep the policies you have

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There are often times in our lives, as the tides of our fortunes swell and ebb, that we may be tempted to throw up our hands, surrender and utilise whatever may be at our disposal to try to solve an immediate financial issue. This may be to draw the cash on investment policies or simply cancel risk policies like Life and Disability to save on the monthly payments in the belief that they can always reinstate these policies or start to invest again when the tide has turned.

This is not always a good idea and should not be done without at least seeking some solid financial advice because as this article illustrates, there are many good reasons to keep the policies you have…

Risk policies

Apart from the obvious immediate issue of not being covered there are other disadvantages to stopping payments on such policies and these include…

Age and health – The cover and premiums of most risk policies are calculated on the applicant’s age and state of health at the time of applying for the policy. Certainly, you can’t reverse the ageing process and you will have advanced in years by the time you try to rekindle the policy – this could affect the premium you will pay so don’t be surprised if you can’t get the same cover at the same price.

With regards to health, if you have new health issues this can certainly affect the level of cover, or worse, preclude you from getting any cover at all, that you may have enjoyed previously and this is quite a common problem for people who have surrendered policies when in good health.

Waiting periods – Unfortunately, when surrendering a policy you are also surrendering the waiting periods you had to endure before receiving full cover when taking the policy in the first place. These waiting periods can include Immediate Expense Benefit, Retrenchment Protector, Funeral Cover and certain exclusions with waiting periods linked to them.

You lose Bonus benefits and special offers – Many policies have long-term loyalty bonuses payable to the policyholder. One example is the ADDLIB Bonus on Liberty policies which accrue over a 5-year period and increase as your cover and investments grow. You must also remember that If you start a new policy you will not only lose the bonus but there’s a good chance that the new insurer might not offer the same benefit!’

The same applies to special offers that might have benefitted you when you first took out the policy, which will not be available to you now and the worst case scenario is that you run the risk of being uninsurable when you’re ready to reinstate it!

Investment policies

Historically it has been shown that cashing in on investments and dropping out of the market can have devastating long-term effects. You immediately run the risk of missing out on growth and jeopardising your retirement or other goals.

Always remember that there is no bell at the bottom of the market, and the cost of being out of the market as recent history has shown can be summed up as follows (source Goldman Sachs Asset Management 2022)…

  • Missing the first 5 days of market recovery = 12% future loss,
  • Missing the first 10 days of market recovery = 17.2% future loss,
  • Missing the first 15 days of market recovery = 22.3% future loss.

These are just a few of the reasons that it is not a good idea to cancel risk or cash in investment policies without seeking expert advice – or at least investigating alternate solutions.

Hereford Group can help

Hereford Group Financial Advisors are expertly trained to find solid solutions to financial challenges. Cancelling policies, for all the aforementioned reasons, may not be the best solution for you or the only way out of a financial jam, but how will you know if you don’t seek our advice first to see what your options are?

The chances are that if you have been working with a good Financial Advisor your portfolio would have been structured in such a way that it will not be necessary to cancel policies, but if that is the case, let us look into it before you make the move. There are many good reasons to keep the policies you have – so talk to us and let us find a better way.

The war cannot be won with surrender, so together let’s find a way to keep what you have and win one battle at a time!

Important considerations when choosing and structuring life cover

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Every bit as important as leaving a well-constructed, legally binding will is having adequate and correctly structured life cover. These are probably the two most essential parts of ensuring that your legacy is protected and that the legacy you leave for your loved ones will be sufficient cover for their needs when you are no longer there.

The life insurance policy stands as an affordable separate, untouchable entity that will ensure important things are covered when you die like executor fees, estate duty, CGT, funeral expenses, the payment of the bond, other remaining debts, education etc.

It is part of a wealth portfolio

It may be a separate entity, but what needs to be understood is that life insurance is very much a part of your wealth planning, as depending on how it is structured it can affect how its proceeds will be taxed, the correct financial provision for loved ones and estate liquidity. We thought it might be helpful therefore to offer some advice on these important considerations when choosing and structuring life cover…

Don’t pay more or less than you need to

Your premiums will be based on the amount of life cover you need, and that depends on what you intend it to cover. For example, If it is to cover bond payments then ensure it is adequate to do so. If you want it to cover education or a stipend for your spouse to live on then it needs to cover that too. In both cases, these should be reviewed as time goes on and your additional wealth increases – which leads us to…

Decide on inflation-linked or fixed premiums

You have the choice of ensuring that escalating costs, like what your family may need to live on, will be adequately covered by having inflation-linked premiums, but then you need to be aware of the rate of escalation of these premiums and ensure that they will still fit with your wealth profile.

If the main function of the policy will be to cover a bond, for example, which is likely to decrease in time you may decide on a fixed payment that will cost you more initially but is easier to budget for as you age.

Nominating the correct beneficiaries

The nomination of beneficiaries too depends on the ultimate goal of the proceeds of the policy. If it is to create liquidity in the estate then the estate should be nominated as the beneficiary, or if it is to be paid to the spouse then they should be the beneficiaries as it will be paid directly to them. If it is for minor children a trust should be created to prevent the Guardian’s fund holding the proceeds until they are of age. There are various tax and other considerations to be taken into account with regard to all these decisions though, so input from a Financial Advisor is recommended.

Other important considerations are the coupling with life insurance or choosing stand-alone living benefits like income protection, capital disability and dread disease cover. That decision can affect the final pay-out of your life cover though, so these considerations should all be decided with the help of a qualified Financial Advisor.

Consult the professionals

Hereford Group has over the last 25 years ensured that every one of our clients is seen as and treated as the unique individuals or businesses that you are. Talk to us today about life insurance and the expert planning of a wealth portfolio that will see you retire in comfort with your loved ones also taken care of.

Just a final word of advice on this one – always reveal any health issues you may have when taking life insurance as a policy not paid out is not worth a thing!

A Will is the way to holiday peace of mind!

image of a last will and testament

The Easter holiday season is once again upon us and with the COVID-19 pandemic, for the most part at least, behind us, many people will be travelling to holiday destinations. Travel always contains a certain element of risk and we have written many articles at this time advising on the important insurances to be put into place before we leave our homes and take our long earned break.

Amongst these are household and vehicle accident cover, income protection and disability insurance, all of which will stand us in good stead in the unfortunate chance of an accident, but perhaps the most important thing we need to do is take life cover and ensure that we have a well-drawn up legally compliant Will!

A will is peace of mind

Not only when you embark on holidays but at any stage of your life, from the day you begin to earn and create something worth leaving behind, a good Will needs to be in place. Once this is done you can experience the peace of mind of knowing that your loved ones will benefit from your legacy with a reasonable chance of survival, education and growth, without you still bringing home the bacon!

Your Will is possibly the most important document you will prepare in your life if you truly care about their well-being – and why is that? Failure to draw up a proper Will can lead to disastrous and unintended consequences at a time when your family is most vulnerable. Assets can be frozen and the wrapping up of Estates can be drawn out for months or even years. This is why it is It’s critical that you use a professional to draft your Will and we can help.

Important questions

There is more, however, to protecting your loved ones, or whoever you have chosen to receive your legacy, than just drawing up the will. Ask yourself these important questions…

Who will administer your estate and have control over it? – So many people make the mistake of leaving this to a relative because they have the family’s interest at heart, but it often turns out that they are over their heads when it comes to the sometimes intricate facets of administering an estate.

Who will you appoint as suitable guardians for any minor children? – Some parents also choose Godparents because they are their best buddies or family members, but have you seriously considered if they would be suitable parents for your children and be able to expertly administer your estate in their biggest time of need?

To whom will your assets be distributed? – Wills are put in place to ensure that whatever your estate consists of the right people will receive exactly what you want them to receive and there will hopefully be no squabbling over who gets what. Make sure your life policies and other policies that bear income at the time of your death also have specific beneficiaries for each policy, just to help to simplify things.

Trust us to do your Will your way

Because at Hereford Group we know that everyone is different, we can be trusted to ensure that your Will is carried out your way. Our specialist Attorneys are at hand to guide you through this important process, ensuring that your Will complies with the strict legal formalities prescribed by the Wills Act and ensuring that your true wishes, as simply and clearly as possible, are carried out.

Remember that our Fiduciary department also deals with every aspect of estates, like trust creation and administration and deceased estate administration. Contact us to discuss your specific requirements and you can leave this vitally important aspect of your wealth profile in our capable hands.

Bon voyage – travel safely – and now you can go with peace of mind!

Turn the financial pinch into positive possibilities

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Thanks to the war in Ukraine and the ever-rising price of electricity, petrol and commodities in general, we have really begun to feel the pinch in our pockets. Certainly, we have been here before, and just a little while ago too with the economic downturn of the pandemic, but it is still daunting to face wave after wave of financial negatives when we have just gotten back on our feet. So, what can we do about it? How do we turn the financial pinch into positive possibilities?

Well, let’s start with a rather positive quote from self-improvement guru Ralph Marston who said; ‘’Every positive thing in your life represents a single unique blessing. Every negative thing in your life has the opportunity to become a double blessing. For when you turn a negative into a positive, you gain twice. You are no longer burdened with the negative situation, and in addition to that you are strengthened by a new positive force.’’

Don’t stay in the dark twice!

Let’s take an example of a negative that we can turn into a positive possibility – the current load shedding and continual price hikes from ESKOM, who are feeding the nation with a fossil fuel-based energy source, electricity. It is bad enough that we are physically in the dark, but if we don’t start investing in better forms of energy to replace electricity we are keeping ourselves in the dark – twice!

We all need to start investing in environmentally friendly energy sources and can do this even in small ways like having a gas cooker and a solar-powered geyser for example. These two household items alone are two of our biggest energy guzzlers and for many of us these are affordable alternatives that can ultimately replace a poor fuel source and save us money.

For many others of course this may be easier said than done, but if those who can spend more time and money on developing better energy infrastructures do so, it can ultimately benefit us all.

Use pedal power to stop the petrol pinch

Once again, not everyone can do it, but how about more of us start pedalling to get to where we need to, instead of using our vehicles, to beat the petrol pinch? South Africans are notorious for having one person in a car, and going by car to the corner café! Not only will cycling or walking save on petrol but we will get substantially healthier through the increased exercise. This is done all through Europe, even where they have good public transport infrastructures, so why do we not do this (and have more solar energy) here where we have the perfect weather for it?

COVID proved to us that we can also work successfully from home, so let’s ease the traffic burden on the roads and save petrol by spending a few more days a week doing this. We can now take advantage of greatly improved online shopping resources and hold online meetings to save both time and money. This is a great positive that the petrol price hikes have inadvertently afforded us!

Plan wisely to beat rising budgets

Sure, our budgets are taking strain, but we can benefit from finding better ways to budget at times like these. Why not budget more flexibly, so you allow for increases on items like petrol, electricity and foodstuffs, which are usually subject to regular price hikes – and fix, or even reduce, the items that you can control, like luxury goods, expensive vacations, eating out, gym memberships etc?

Also, talk to a Financial Advisor about the many ways you can consolidate debt to give you more immediate expenditure and make the right investments to ensure growth on your capital, even in inflationary times.

It can be done because our financial experts at Hereford group are all trained and highly knowledgeable about every product on the market and can, through understanding your specific financial challenges, help you to always turn the financial pinch into positive possibilities!

8 steps to a better Employee Benefits package for your business

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As a company that have been serving businesses in the Financial advisory field for many years, one thing we understand is that it is all about the benefits that you receive by utilising our expertise and experience. Benefits should not be just spoken about or empty promises, they need to be transparent, tangible and constantly yielding results.

For this reason, our Employee Benefits division has devised a benefits package that we believe has transformed many of the businesses we serve from those who merely dip their toes in the water to those who ultimately ride the crest of the wave of investment opportunities. Here then, in summary, are our 8 steps to a better Employee Benefits package for your business…

  1. Member net replacement ratios – A member replacement ratio measures whether you will retire with enough money and provides your members with insights into their ability to fully replace their final salary upon retirement.
  2. Group risk services – Risk is an issue faced by every business and in many areas of operation. We assess independent risk provider relationships with all your major service providers and execute annual risk costing reviews as well as service provider risk costing negotiations.Further to this, we provide objective guidance and advice on appropriate risk provider appointments aligned with your requirements in terms of costs, benefit structures and demographics.
  3. All costing analysis – A good example of this is in the case of medical funds. Costs levied against a retirement fund have the effect of reducing retirement pay-outs to members. Such costs are deducted from recurring contributions and/or investment returns. We analyse and advise on reducing such costs.
  4. Investment consulting – This is a critical area of service in terms of augmenting a business’ Employee Benefits. Investments need to be astutely chosen through experience and knowledge of current market trends. Our service in this area includes fund investment risk profile analysis, investment strategy recommendations and regularly reporting on fund returns and market trends to offer specific investment recommendations.
  5. Asset liability Consulting – provided through a team of experienced actuaries and financial analysts, this service arms both corporate and individual members with an effective investment strategy.
  6. Member financial management workshops – This encompasses issues like investment planning, retirement planning and general financial matters. We facilitate workshops that equip employees with the necessary tools to implement a holistic financial plan.
  7. Member 1-on-1 Financial planning – the long term welfare of your employees is important so we also provide individualised retirement fund advice and access to financial professionals able to assist them in setting and achieving long-term financial goals.
  8. Retirement fund services – This is a comprehensive service that encompasses guidance and advice on Independent administrator relationships with all major service providers and appropriate administrator appointments relative to costs, fund requirements and demographics.We also provide a private client-modelled employee benefits administration support service to ensure the appointed administrator adheres to signed administrator and service level agreements.

Consult the Employee Benefits specialists

As confident as we are that this is an effective package offering every type of business a comprehensive Employee Benefits structure, we at Hereford Group are renowned for our understanding that all businesses and their members are unique.

Why not contact us to arrange a no-obligation consultation to see if we can devise the best benefits package for your business, perfectly aligned with your specific requirements? Stay safe – stay positive – and stay invested in the future!

Good financial habits attain financial freedom!

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This month we celebrate Human rights day and our great constitution, which gives us many types of freedom, like the freedom to vote, to move around unhindered and to take one’s place as an equal in society, but there are some freedoms that are not a right and which need to be earned.

Financial freedom is one of these. Certainly, we now have equal opportunities to earn a living in our chosen fields whatever they might be, but the accumulation of wealth that ultimately gives one the freedom to choose a certain lifestyle is very much a choice we make and it requires adopting some solid financial habits to accomplish this.

Good financial habits just come down to basics but we need to be reminded about these sometimes and execute them repeatedly until they do, in practice, become habits. So what are these good financial habits that attain financial freedom?

Budget to save

From the day you become an earner and right throughout your career, your personal and your business’ budgets need to be strictly managed and adhered to with the primary purpose of saving money. This means that expenditure always needs to equal less than income and ensuring it does should become the first habit you acquire.

Save to invest

Habit number two is to ensure that what is saved is not just left to earn minimal interest in a bank account but to invest it actively where it can set your wealth profile on a growth path. There are other aspects too to ensure your wealth is not eroded, like protection of income against unexpected illnesses or mishaps, and investing to ensure the taxman doesn’t take more than he needs to. A good Financial Advisor can assist with this.

Fight debt!

From day one, other than the bank’s assistance to buy you a home, which is something you are unlikely to be able to pay for in cash (for a while anyway) resist debt of any kind. If you need a credit card, or to open an account to make purchases, the reality is that you are buying what you can’t afford.

One of the best financial habits to adopt is to avoid debt at all costs and if you are already in debt then speak to a Financial Advisor about debt consolidation and other options.

Get astute financial advice

It is clear already that the help of an astute Financial Advisor should be one of your first essential financial habits. You will be surprised to find that we at Hereford Group are not interested in just selling financial products. Our goal is to assess your specific circumstances and create a holistic wealth portfolio – that protects you and your wealth – and caters for your present needs and your retirement future.

Connect with us to set up a no-obligation consultation so we can begin to maximise the benefits you have gained from your good financial habits – and attain your financial freedom!