Key Questions to Unpack with Your Financial Adviser

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South Africans have 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, Bertie Nel, Momentum Head of Financial Planning and Advice, says 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 flock to 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,” says Nel.

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Bertie Nel, Momentum Head of Financial Planning and Advice

According to the Momentum/Unisa Household Financial Wellness Index, only 15% of South African households are genuinely 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,” says Nel. “Without proper advice, households risk making costly mistakes that can undermine their financial stability.”

So, how exactly should you be engaging with your financial adviser on your journey to success for the new year? To maximise the value of working with an adviser, households are encouraged to ask the right questions when reviewing their finances. Here are seven essential questions to discuss with your adviser:

What is the state of my financial health?

    Before setting goals, it’s 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.

    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.

      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.

          How can I tackle my debt smartly?

            If you want to be smart about debt, be smart about getting rid of it. Nel says many debt management strategies 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.

              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,” says Nel. “They help you avoid pitfalls and seize opportunities that align directly with your financial goals.”

                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. Don’t wait—start now and take charge of your financial journey with the right advice,” concludes Nel.