Although you may have taken out a policy or investment plan in your 20s, your 30s are really when you start to focus on a holistic financial strategy. Palesa Tlholoe shares the questions you need to be asking.

Certified financial planner Palesa Tlholoe reflects on the needs of the 30-year-old and offers a list of questions to ask your adviser after your 30th birthday.

As a 30-something-year-old myself, I’ve experienced the immense financial changes you face in your 30s. During our 20s we’re still adjusting to the working world and, in many ways, are still growing up. We feel invincible, as though we have plenty of time ahead of us before we have to worry about things like retirement. In our 20s we tend to be less concerned about our financial future, but that changes as we start to settle down and engage with financial services and advice for the first time.

Buying your first home
In many cases, we invest in our first major asset around this age, namely property. For some, this property is their first home, although for others it may be an investment while they continue to live with family. Either way, it often requires borrowing money, which is a risk, especially if you’re unable to meet those repayments due to death, illness or disability. Before you make this commitment, speak to your adviser about the following:

• What would typically happen to my property if I could no longer make the repayments due to death, disability or severe illness?
• If I passed away, how can I ensure that my family is still able to use my property? How would death taxes affect them?
• I don’t have dependants or a spouse at the moment, why do I need to protect my property if I were to die?
• Should I take out insurance specifically for my bond repayments or should it form part of my overall life insurance cover?

Investing for growth
Many of my clients around this age have started some form of saving, but they’re often not using the right investment vehicles for their specific goals. This is a good time to review your investment goals and ensure that you’re using the appropriate investment products:

• Why is it risky to put my long-term savings in a money-market or 32-Day Notice Deposit?
• What are some of the investment options I can use to start creating wealth?
• What is the best way to save for emergencies?
• What is goal-based investment planning and how can I use this to create financial freedom for me and my family?
• Why is it important to consider the term of an investment when I choose an investment option?

Protecting your biggest asset
By the age of 30 very few people have amassed much in the way of assets, but what they don’t always realise is that their biggest asset at this age is actually their future income. If you’re earning R20 000 a month at the age of 30 and never receive a salary increase greater than inflation, by the age of 65 you would still have earned over R26 million in your lifetime. That represents a very big asset, so you need to discuss the following with your adviser:

• How can I insure my income to protect myself from unfortunate incidents, such as retrenchment or the inability to work due to illness?
• If my employer is already giving me salary protection in case of disability, is it advisable to take out a policy for this from an insurance company as well?
• How do I provide for my family if I’m unable to work?

Keep retirement funds for retirement
Around this age many people will change jobs for the first time and the temptation is to cash in their retirement fund. In some cases, this may be due to a lack of awareness that there are ways to preserve your retirement fund, but for others it’s seen as an opportunity to pay off debts or put a deposit down for their home. The problem is that these should all be seen as separate financial needs and a short-term decision can derail your retirement plans. The compound growth on retirement funds built up in your 20s can account for nearly a third of your final retirement lump sum.

Changing jobs is a good time to assess your retirement needs as you can select the appropriate contribution level with your employer or make alternative arrangements should your employer not offer a retirement fund:

• How do I set my retirement goals in order to ensure that I maintain the same standard of living once I’ve retired?
• Do I need a retirement annuity even if I have a pension/provident fund with my employer?
• How does my pension/provident fund tie in with my retirement annuity?
• Why is it that most people don’t retire comfortably despite having had a pension or provident fund with their employers?
• Is there an option available to avoid cashing in my pension or provident fund when I leave my employer? What are these options?
• How can I maximise the tax benefits that are available for retirement funds?

Time for something fresh!

Read more about our new offering that provides a wider range of investors access to Liberty's iconic properties.

Click here for more information.

Should you become critically ill, it could affect your future cover, but all existing cover remains in place and at the same premium. Here’s what you need to know about cover after an illness.

As the industry adjusts to the changes brought by the Retail Distribution Review, it’s important for financial services consumers to understand their rights and the implications of paying for advice.

The ability to tell the facts from the fiction when it comes to health myths can make all the difference when it comes to treatment. We look at three common cancer myths and give you the facts.Read and stand a chance to win

Liberty’s new property portfolio offers customers the unique opportunity to invest at a discount. We delve into the details of the portfolio and answer some of your most frequently asked questions.

Got a question? We're here for you!

Thank you for the feedback we have received on these newsletters so far. Your comments and suggestions will help us to give you relevant information for planning and managing your finances. Please keep talking to us and telling us what you think by contacting us via the channels below.