We go back a long way Dad!

The role in the family has always clearly been that of protector and provider. We have evolved from cavemen to hunter, to farmer, to businessman we have progressed through life and still have the basic role to play – look after the family.

So financial planning is your starting point, Dad…This Father’s Day you should update your financial plan, mindful of the essential provisions that need to be in place to protect you and the family.

A successful financial plan makes provision for life-changing events that we will encounter in our lives.

Death – don’t leave the family short

If you don’t have enough capital to ensure that the family can survive financially if you die then you need sufficient life cover to pay off your debts and provide an income for the family into the future. 

Disability – don’t leave yourself and the family short

If you can work for any reason you need an income and a capital amount to pay off all your debts.

Severe Illness – don’t be left short

If you have a dreaded disease such as a heart attack then you need to ensure that you can cover the medical expenses and the cost of recovery.

Retirement – don’t end up short

When you retire you need sufficient funds to maintain your monthly income protected against inflation over the rest of your life.

So, Dad, there’s a lot to plan for as our role still continues to protect and provide for our families.

Happy Father’s Day!

SARS presented its plan this week for the forthcoming tax season. Interestingly, the dates for submission have been changed from the normal deadlines.

The filing season opens for submissions on the 1st of August. If you file online then you can do so from the 1st of July.

According to SARS, you do not have to file a return if your total taxable income is not more than R500 000.

This is subject to receiving income from one employer only and provided you do not receive income from:

• a car allowance
• a business 
• rent
• interest
• capital gains under R40 000

Furthermore, this applies to taxpayers who do not have any deductions such as:

• a retirement annuity
• medical aid
• travel expenses
• expenses incurred with your business

Whilst the new ceiling will free up SARS you may do well to still submit your return. This way you will keep your continuity of submissions and a possible refund if your company overtaxed you in the year. 

There is a cool app that SARS is finalising which lets you submit on your cell phone. The demo of the new app makes your submission very easy as you simply verify and submit. This technology is most welcome as it helps avoid visiting a SARS branch and waiting for hours to be attended to.

I reckon you should submit your return sooner than later even if you are under the new threshold and take full advantage of e-filing and the online options.