By Everson Luhanga
- Andile Jonas says many ordinary people do not have the skills or the experience to make the right money decisions.
- Financial advisers help you compare products, dodge risky investments, manage debt and stay calm when money markets suddenly become unstable.
Many South Africans dodge financial advisers because they think handling their own money will save them cash.
But doing this without expert help can hit your wallet hard. Andile Jonas, head of marketing at Momentum Savings, warns that managing your finances alone can become very expensive.
Jonas compares financial planning to doing your own home repairs. He says people simply do not have the skills or the experience to make the right choices.
“Even with something relatively simple such as painting, it can be a challenge to be a novice,” he said.
Many people struggle to figure out exactly what they need. Jonas says this includes knowing how much insurance cover to buy or how much risk they can take with their investments.
Emotions also get in the way of money decisions. Jonas says this happens most when families are involved.
“Can we be objective when it comes to our family, and who will need what protection or extra help?” he said.
Financial advisers help people compare products and understand the real costs. They also stop people from pouring their cash into risky investments.
“A sensible warning against a ‘too good to be true’ investment is worth its weight in gold,” he said.
Advisers step in to help people stay calm when financial markets become unstable.
They build plans for retirement and help people manage their debt. They also assist with tax efficient products and estate planning. Advisers check in regularly to make sure people stay on track to reach their money goals.
Jonas says people often avoid their finances because money feels stressful and confusing. But he says regular meetings with a trusted adviser make tough choices easier and help families prepare for the future.
Pictured above: Andile Jonas.
Image source: Supplied
