Wealth management is a task that isn’t to be handled with kids cloves. While building wealth is hard, sustaining and transferring it is even harder. With very few families in Africa, wealth is hardly passed to generations because the first bearer most times doesn’t master and create a system that can make that seamlessly possible.
Some experts from different fields have their opinion on some of the means that wealth can be sustained and transferred to the next generation
Dr. Oladimeji Alo, Chairman of Berger Paints Plc, and MD Excel Professional Services said that one of the major mistakes that must people make with their wealth preservation process, is falling into the trap of excessive consumption when they start building wealth and forgetting everything they did to make the money in the first place. He suggests that controlled consumption is one sure way of ensuring that wealth is accumulated over time and transferred to the future generation. He also observed that not seeking or ignoring professional advice in the area of wealth management was also another problem that must be paid close attention to the wealthy class who wants to transfer their money to the next generation. They will take close to heart these advices and must also use insurance vehicle as a means of both wealth preservation and transfer. He went ahead to advice that the wealthy class should learn how to prepare their heirs adequately before the actual wealth transfer process and that a strong system should be built around the process to make it more effective and reliable.
The Managing Director of Afriland Properties Plc, Mrs Uzo Oshogwe believes that real estate is a veritable means of wealth transfer. Wealth according to her is the difference between both tangible and intangible assets owned after all debts must have been settled. in her opinion, real wealth is created through real estate more than any other means. This source she believes is not just a strong cash flow source during the income years, but a sustaining source during the lean years and a good and trusted vehicle through which wealth can be transferred effortlessly from one generation to another. She also supports that having good investment sense in other asset classes can help in the consolidation of wealth and strengthening of net worth.
The Managing Director of United Capital Trustees, Mrs. Tokunbo Ajayi believes that wealth management should be combined with good financial and investment advice, accounting and tax services, retirement planning and estate planning for it to be very effective. Her strong opinion is that wealth is not complete without adequate plans to ensure preservation from one generation to the next and this should be the responsibility of all who want their wealth to survive and outlast them.
Accumulating wealth is a wonderful process and passing it on to as many generations as possible is an idea that must not be ignored. Hence, the opinions shared by these professionals must be taken seriously.