Wealth planning & management
Experts have defined wealth planning as a client-centered process that works to develop a roadmap that helps individuals build, manage, protect, and transition their money by looking at all areas of their financial life. This includes retirement, legacy, and business planning among others. In return, this offers peace of mind that comes from knowing that they and their family are financially secure regardless of the circumstances. On Wednesday, September 23rd, 2020, our panelists Paul Muya – Head of Stakeholder Relations – Unclaimed Financial Assets Authority, Kerry-Anne Makatiani – CEO at C&R Group, and Strathmore Institute of Management and Technology Faculty, Gladys Juma, discussed and answered questions regarding wealth planning and management.
What are some of the money habits experts suggest you can adopt today?
- Automate your finances. Sending your money automatically to investment accounts, savings accounts, and creditors allows you to build wealth effortlessly. Automated funds free up valuable time and allow you to focus on other aspects of life.
- Identify specific money goals. Do not just buy things. Instead, propose to write down goals for your annual income and net worth. Be realistic, but do not be afraid to challenge yourself.
- Be patient. It takes time for money to grow. Experts agree that when done correctly, wealth building takes time. Long-term saving and smart investing is the secret to growing your funds.
- Grow your money. If your cash is just sitting in bank accounts earning low interest each year, it is not growing. Put it to work by diversifying into treasury bonds or equities that earn higher returns.
Keep it real! So, the legacy goes on
According to Deloitte, as you work hard to build wealth, be sure you are keeping your books in order and that your family or a close friend is in on the loop. Making a will saves your family unnecessary distress at an already difficult time. A will makes it much easier for your family or friends to sort everything out when you die. Without a will, the process can be more time consuming and stressful. Also, if you do not write a will, everything you own will be shared out in a standard way defined by the law which is not always the way you might have desired. Besides, writing a will is especially important if you have children or other families who depend on you financially. Over and above that make sure your will is legally valid by engaging a lawyer to better help you and your family understand the process and what the documentation means.
If you think you cannot build wealth, think again. Focus on a few things that work for you. A good place to start is to speak to a financial advisor at your bank for deeper understanding. It all starts by investing in yourself and building for the future. Everyone does it differently, and nobody will do it exactly like you. Give yourself a chance and start saving that unexpected cash from a bonus or a “chama”.
This article was written by Annete Karanja.
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