While financial advisers are experts about financial planning, you must ask the right questions to ensure you get the best advice.
While everyone is caught between getting children ready and into school and working towards keeping their resolutions for 2025, there is another important task: talking to your financial adviser to ensure you can meet your financial goals.
Bertie Nel, head of financial planning and advice at Momentum, says South Africans hit the ground running in the new year, leaving little thought for their financial security despite being in the throes of ‘Januworry’.
“With the cost-of-living crisis still a fixture of financial stress in household budgets, there is no better time than the start of a new year to engage with a financial adviser and do it right. I know many people review their budgets as a new year’s resolution, but when it comes to the majority of South Africans, we see a real knowledge gap that keeps them from getting the most out of financial planning.”
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Help with financial literacy
According to the Momentum/Unisa Household Financial Wellness Index, only 15% of South African households are really financially literate, despite 45.7% believing they are. Nel says this shows how easy it is to lie to ourselves about our handle on wealth creation and household financial management. That is where financial advisers fit in.
“Your financial adviser can be a lifeline when navigating the complexities of budgeting, saving and investing. Without proper advice, households risk making costly mistakes that can undermine their financial stability.”
To maximise the value of working with an adviser, households are encouraged to ask the right questions when reviewing their finances. Nel says you should ask your financial adviser:
What is the state of my financial health?
Before setting goals, it is crucial to assess your current financial standing. Are you saving enough? Is your debt under control? “Treat this as an annual check-up for your wallet, ensuring your finances are primed for growth.”
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How can I optimise my tax situation?
If you want to secure your hard-earned income, let an adviser shine a light on the tax-saving opportunities available so you can start planning for tax season. There may be recent changes to tax laws and deductions that could benefit you, Nel says.
Are my investments aligned with my goals?
Discuss whether your investment portfolio is diversified enough and can weather economic uncertainties. Your adviser can help rebalance your investments to match evolving goals.
What about my insurance portfolio?
Unexpected events can derail even the best-laid plans. Ensure your life, disability and critical illness cover match your current circumstances and future needs.
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How can I tackle my debt smartly?
If you want to be smart about debt, be smart about getting rid of it. Nel says there are many debt management strategies that can lessen the financial blow and free up some cash. This includes consolidation loans or even a simple reprioritisation of repayments. Let your adviser help you tailor a debt reduction plan.
Do I have enough emergency savings?
An emergency fund covering three to six months’ expenses acts as a financial safety net. Discuss ways to build or strengthen your reserves.
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Can we review my financial goals?
Financial goals should evolve with life changes. Regularly reviewing them with your adviser ensures they remain realistic and achievable.
With these questions at the ready, Nel says engaging with a financial adviser provides more than just tips – it establishes accountability and clarity.
“Think of a financial adviser as your coach, guiding you through the big game of life. They help you avoid pitfalls and seize opportunities that align directly with your financial goals.”
He says while the new year inspires fresh resolutions, financial stability requires ongoing commitment. “South African households are encouraged to approach 2025 with renewed focus and professional support to build resilient budgets, reduce debt, and secure their financial futures.
“With the right financial plan in place, 2025 can be your year of growth and stability,” Nel says.
