Men listen up! Tackle your financial wellness this Men’s Health Month
June marks Men’s Health Month and although its main focus is on physical health, at Cornerstone we believe in a holistic approach to your overall wellness and that includes your financial well-being. With that ethos in mind, we have compiled a few areas you can focus on to ensure that you stay financially fit, healthy and protected.
Start saving now
About 90% of South Africans don’t have enough money to retire comfortably. The best way to avoid becoming part of this statistic, is to start saving today. Even if you haven’t start saving yet, it’s never too late to start. Get into the habit of saving at least 15% of your monthly salary for retirement as well as around 5% for emergencies.
If you are already part of a pension fund, you can still contribute to a private retirement annuity as well. The main benefit of doing this is to bulk up your retirement savings, thereby ensuring a more comfortable retirement, but it also holds appealing tax benefits. You can claim all contributions to a pension fund, provident fund and retirement annuity back form tax paid, up to 27,5% of your annual taxable income. If you struggle to save or if personal financial planning isn’t your strongest suit, contact Cornerstone Financial Planning today for expert advice and help.
Take out a severe illness policy
June marks Men’s Health Month which aims to raise awareness about the importance of early detection of disease among men. Dread disease and severe illnesses are on the rise and it’s only a matter of time before you will be affected, either directly or indirectly. Make sure that you are covered and protected for an event like this, by taking out a severe illness policy.
Severe illness cover is a policy benefit that offers protection against illnesses. With a severe illness policy in place, you will receive a tax-free lump sum benefit to aid in payment of additional expenses due to lifestyle changes, possible post illness rehabilitation expenses, assist with shortfalls on your medical aid and to access advanced medical treatment, which is not always covered by your medical aid.
Also read: Severe illness cover, 6 questions answered
Protect your income and your assets
Many of our earthly possessions are unfortunately quite fragile and they need to be insured well in case of damage, theft or loss. This also counts for your income that’s equally fragile, especially in these turbulent and unpredictable economic times. Losing your job could be catastrophic on you and your family, which is why it’s vital to protect both your income and your assets. Fortunately, there are multiple ways to do this:
- A well-structured short-term insurance policy
Ensuring you short-term insurance is well-structured and custom made for your needs is the best way to protect your home, car and household contents. Always make sur you read your policy very carefully and adhere to any requirements or prerequisites to avoid claim rejections.
- Disability cover
What will happen if become disabled and you are no longer able to work? With disability cover, your income will be protected if you are unable to earn a salary anymore. Furthermore, you can opt to receive a lumpsum benefit to help you with any adjustments you have to make to accommodate your new lifestyle.
- Retrenchment cover
The main goal of retrenchment cover is to ensure that your salary is covered in the event of retrenchment. Unlike disability cover, retrenchment cover will only pay out for a few months after retrenchment and not indefinitely. The idea is to just keep the pot boiling for a few months until you find a new job. The duration, cost and pay-out amounts vary widely from provider to provider, so it’s best to speak to a qualified financial advisor first.
Don’t try to hack it yourself, get expert financial advice
As much as you might want to try your hand at DYI personal finance, we strongly suggest that you don’t. With professional insight and a better understanding of the finer nuances of personal financial planning, having a qualified and experienced financial advisor is at the core of your financial success.
Get in touch with Cornerstone Financial Planning today to learn more about our bespoke and exclusive financial services offering. Remember to follow us on Facebook and LinkedIn more thought-provoking content and industry news and don’t forget to subscribe to our newsletter to get tailor made content delivered right to your inbox.