Managing the burden of providing for your children in your absence

by - August 25, 2016

If you’re responsible for your children’s education, it’s essential you ensure the security of their goals. This means putting in place a financial vehicle which can manage the money you leave behind for them should you die or become disabled unexpectedly.

 Joretha Bothma, Alexander Forbes Life consultant says the risks of not putting a financial vehicle in place to assist you in saving for your child’s educational future include: 
  • Money that should be available to your child may be caught in legal administration, take a long time to access, or potentially be eaten up by paying lawyers’ fees and other costs.
  • Your child’s financial future is decided by an uninformed person while your child is still a minor.
  • Any money that you leave your child might not used in the way you wanted it to be used for your child.
  • Your wishes for how your child is looked after are not carried out in the event you become unable to make your own decisions. 
Financial planning tools such as the Alexander Forbes Children’s Trust benefit securely protects your child’s future education and living costs. All funds are secured and overseen by Alexander Forbes’ Trust Services. This ensures your child’s needs always come first when making financial decisions. If you place this money for safekeeping with a private individual, there’s always the risk they have their own, rather than your child’s, financial agenda when managing your child’s living and education money. As well as safely managing these important funds, the trust guarantees that the money will be used to best serve your child at all times.

We are all responsible for making sure that our wills are in place and up to date should a life changing event occur. But, we’re all human and generally so busy that there is just no time to fit in that extra meeting to manage our financial situation, even though we lie awake some nights worrying about it! If we have a will, then we need to make sure we keep it updated so it changes as our lives change.

How much is enough? 
Your financial adviser will help you work out the amount you need to put aside to cover your child’s future needs. They can also help you review this amount regularly to meet your child’s financial goals as well as suit your budget.

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