Financial Mastery for Women

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Liberty Group SA

Empowering women to be financially savvy is an imperative area of educating young adults in today’s day and age for the simple reasons that most women live from paycheck to paycheck, some are single parents without alimony and others support multiple occupying households, or both. Statistically, 41.3% of households in South Africa are headed by women and the reality is that these women are going to face retirement one day. Factually, a person will need at least 15 times their annual salary to be able to retire comfortably.
Young women who start out in the work place for the first time need to be educated in the importance of planning ahead financially. Youngsters never think about old age or that they’ll ever be old, it seems lightyears away,  but the truth is, age creeps up rather quickly and if one hasn’t planned correctly, there could be dire consequences resulting in zero or insufficient retirement, placing breadwinners and their families under huge amounts of stress.
I attended a very enlightening and informative masterclass hosted by Liberty SA in which a group of highly qualified women explained the importance of empowering women financially as well as how to start effective financial planning.
Liberty Group SA
The morning started off with a delicious breakfast which was provided by 9th Avenue Bistro in Morningside, Durban.

9th Avenue Bistro
9th Avenue Bistro
Soon after breakfast, the financial planning masterclass kicked off with Daphne Rampersad talking the ladies through a slide show and explaining the “Full circle of financial understanding”. Starting off with budgeting and the paying of debt, the circle moves on to savings which is the cash left over after all the expenses are paid. From setting aside a monthly savings plan and “actually saving some money”, one can then take that lump sum of savings which has been accumulating over a period (about 6-12 months) and investing it into a longer-term investment plan. From investment the circle moves to insurance, retirement and finally estate planning. Understanding these 6 steps is very important as a youngster setting out in the working environment, whether working in corporate for a “boss” or owning you own business.
The next step Daphne covered is the important questions to ask a Financial Advisor (FA):
1. What are the FA’s credentials?
2. How do they charge for their services?
3. Ask for a copy or a sample of their financial plan
4. What type of clients do they specialize in?
5. What are their measurements for success?
6. How much contact do they have with their clients, one on one or will you be dealing with a team?
7. What happens if I become incapacitated?
8. What happens if something happens to you Mr. FA?
Each woman in attendance was presented with an amazing gift from Liberty; a beautiful “portfolio lever arch case” with some very helpful documentation called the Financial Mastery Lifebook. It provides a checklist of all one’s personal information such as ID, title deeds, certificates etc. Assets and liabilities, insurance and investments as well as Last will and testament. Once this checklist has been completed, all the relevant documentation can be kept in their individual compartments provided with the portfolio case. It is very handy for important documentation which can be kept in one place providing easy access for family when an estate needs to be wound up.
After a very eventful and information loaded morning, some of the ladies sat around chatting, more eating was had (thank you 9th Avenue) and at about midday, we all said our goodbyes and parted ways, most certainly looking forward to the next amazing event hosted by Liberty Group SA.

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