If a person has perfect vision is both eyes, they are considered to have 20:20 vision. Whilst we can not always predict what will happen in the future, it’s always seems to easy to see the things that have happened with great clarity. Hence, when we look back, events seem so much clearer than prior to their happening.

As part three of our articles on common mistakes in financial planning, (catch up on part two too) we will cover the final three of 7 common pitfalls in the financial journey. These three concerns cover policies that help us plan for unforeseen events that we hope will never happen, but in wisdom realise that they might. Remember, you must never create a portfolio out of fear of the unknown, but out of the power to plan for the future!

Here are points five through seven:

Another overlooked element of financial planning is Disability Insurance. Your ability to earn is what keeps your family secure. If you can’t work your entire family may be at risk.

The risk of disability, as well as its potential cost, is simply too great to ignore. Once again, a company-sponsored plan may be too limited for your needs. You will want to study the policy carefully to understand all of the provisions, including the definition of disability, the waiting period following disability before you can collect and the length of the payment period.

Having no medical cover can turn the best financial plan on its head. Even a relatively minor motor accident can set you back R10k. A serious accident can cost millions. Even if you can’t afford a plan that has all the bells and whistles at least have a hospital plan in place that will cover part of your medical expenses.

Some people have the impression that estate planning is just for the rich. Unfortunately, that view can be costly to their heirs.

Your estate includes such items as your home, cash, investments, personal property, and other assets you and your spouse may own jointly or as community property. These may add up to a lot more than you thought you were worth. Estate taxes can eat away at your assets and your heirs could receive far less than what you had anticipated.

You owe it to your family to have an estate plan in place. An effective will, a trust arrangement and adequate life insurance are some of the options available to help your heirs get what they deserve. Consult your tax, legal and financial advisors for help in putting together an estate plan.

And that’s it! Seven crucial areas to pay attention to when planning for your financial future – and your family’s too.