Month: June 2017

Plan for when you can no longer plan

Recently, my client admitted that she is no longer capable of managing her everyday financial affairs. How can you and your planner prepare for this, should it happen to you?

Dr Sylvia Kree turned 91 recently and has many interests. She also still goes to gym regularly which helps her keep fit. “It is your responsibility to look after my financial affairs, and my responsibility to look after my health,” she regularly says to me.

Of late, Sylvia finds it difficult to manage daily financial matters, like banking, and she is daunted by the fast pace of changing technology. She also does not have any children and her nearest relative lives in the Cape. ‘Who will look after me when I am not capable of doing so myself?’ she asked.

Sylvia and I discussed appointing an administrator over her affairs. Sylvia agreed. “It’s comforting to know that my affairs are in capable hands. I feel reassured and confident that you are there for me, even now,” she says. “I do not understand all the financial terms, and also cannot retain that kind of information. So having someone taking over that responsibility is a huge relief.”

Start thinking about your wishes should this ever happen to you. Prepare for when you can no longer care for yourself. Take time to look at retirement villages and facilities before you need to – where would you like to stay? Do you want to move only once? Then choose a village with assisted living and frail care facilities – most of these cover that cost by a life rights arrangement. Talk this through with your spouse and your planner so that you are prepared before you are compelled to move because of injury or illness. Many of these establishments have waiting lists in excess of two to five years, so choose where you might like to live and put your name on the list – there is no obligation, so you can change our mind.

By thinking this through whilst you are still capable of contributing to the conversation will make the process so much simpler and in line with what you want.

When do you institute a power of attorney?

If you leave it too long, and there are early signs of dementia, a power of attorney may not hold. Under current legislation, the power of attorney would not endure in situations where you are no longer able to understand the impact of such consent. Rather pre-empt the situation and be prepared for such an eventuality.

Consider whom you would entrust with a power of attorney.

Build additional costs in your financial plan for such a situation. The cost and strain on family members can be overwhelming. The carer or child has to go through an onerous process to be appointed administrator or appoint a third party as administrator and/or curator.

Planners can facilitate and advice around these matters, having established relationships with administrators and curators. Experienced planners have been through this process before, and are aware of aspects of planning that you may not be. You should have a trust relationship with your planner that ensures that he or she is planning in your own best interests … and a time when you are most vulnerable should be no different.

Article by Christina Forman, Certified Financial Planner and Retirement Specialist at Chartered Wealth Solutions. Click here to access the second article in the series: When a loved one can no longer manage their financial affairs. One of our clients also shares their personal experience of the Implications of being a parents’ tax consultant and having power of attorney.

Minding your Ps and RAs

So, you have been saving faithfully towards your retirement. You are confident that you have enough stashed away in the various investment vehicles: RAs, Pension, Provident, Preservation, Unit Trusts … and now, you salary has come to an end. How do all of your investments come together to give you an income … and what are the tax implications? Certified Financial Planner, Pat Blamire, chats to Michael Avery on the Classic FM’s Classic Business programme, to help retirees get the most out of their retirement savings.

Click here to access the Classic Business radio discussion.

When work meets wonderful

It’s a wonderful thing when someone loves what they do.

I’m grateful to say that I am one of those people. Each day, I wake up with a clear sense of purpose and passion, knowing that I get to go to work and do what I love. Supporting my clients in their retirement journeys means everything to me. My clients, many of whom I’ve built meaningful relationships with, are on their way to aligning money with meaning in their lives. And honestly, nothing makes me happier.

But feeling this way about my work – about who I am and what I do – didn’t happen overnight. It has literally taken me years, years of introspection and insight. I’ve had to spend a lot of time looking inside myself, accepting who I am and exploring who I can be. And then I’ve had to take time to look outside of myself and to consider the contribution I make in the lives of others.

Having travelled this road of self-reflection, I can say with conviction that it is worth every well-worn step – even if the destination isn’t always clear at the outset.

A retirement that works

Part of what I do in my work is to encourage conversation. Some of the conversations I have with my clients are about work in retirement. Many of them have found work that they are passionate about, which is incredibly exciting to see.

My husband is one of those people. At age 57, Gys found his next career. Well, that’s not entirely true. He re-found his career because it was when he was a young school boy that he started this particular kind of business – hand-making wooden pencil boxes and selling them to his school friends. This developed into making lamps and little side-tables and at the age of 16, he walked bravely into Tony Factor’s factory to show him some of what he’d made. Tony bought everything he had. And so began his career. His business grew to 350 people, with his company making furniture for the likes of Game, Dion and Pick n Pay. This type of business growth meant that he no longer got to use his hands. Instead, he was heading up a big business, managing people and managing money.

Work: it’s a pleasure

Ten years ago, he sold his business and selling woodworking machines has been something he’s been doing ever since. But all my talking about passion, purpose and finding pleasure in retirement got him thinking (Who knew he listened to me!). He decided build a workshop at home so he could work with his hands once again. Owning a woodworking machine business made it possible for him to set up his dream workshop – with machines that most men would kill for! Gys didn’t realise how much he had missed working with his hands – and with wood. This latest venture saw him making things like jewellery boxes and trays. But now, a year in, he’s back in business, making bespoke furniture with beautiful, indigenous wood for commissioning clients. Finding his way back to the work he loves has invigorated him. He knows what he loves. And doing what he loves will be focus for him in the decades ahead, as he starts to leave a legacy with his beautifully handcrafted pieces.

What stands out about people who create encore careers is the way in which they all light up when they talk about their work. Their enthusiasm and excitement are contagious. They live in a place where work meets wonderful. Where do you live?

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