Experts have said if wealth is successfully transferred from one generation to the other, financial security will be enhanced and guaranteed. This they believed would reduce the current epidemic of wealth truncation.
The experts who gathered at the 2017 wealth forum organised by Zela Ventures Int’l Limited recently identified initiatives for achieving sustainable wealth to include strategic planning, healthy readily available working cash to maintain business agility, strategic cost management, reduction of dependency on short- term financing by dealing with debt, effective risk management among others.
Chairman of Berger Paints Plc, Dr. Oladimeji Alo, while delivering his keynote address on ‘Issues to note in wealth preservation, enhancement and transfer’ opined that it relates to the strategies, plans and actions to protect assets and income.
Alo who doubles as the Managing Director Excel Professional Services, stated that mistakes wealthy people make in wealth preservation is; not understanding the nature of wealth, but falling into the trap of conspicuous consumption, forgetting how the wealth came, not seeking or following professional advice or investment, over concentrating of assets, poor planning amongst others.
He listed the mistakes in wealth transfer as follows, not sufficiently preparing successors to receive wealth, pre-mature transfer, no formal structure or system and improper insurance.
The Managing Director of Afriland Properties Plc, Mrs Uzo Oshogwe enumerated the benefits of real estate as a veritable means of wealth transfer. She said wealth is the total market value of all physical and intangible assets owned, subtracting all debts.
According to her, real estate has been an integral part of our lives; it is a brilliant source of long-term wealth creation, stating that more fortunes are made in real estate than in any other business. Investing allows one to increase their financial worth.
Managing Director of United Capital Trustees, Mrs. Tokunbo Ajayi, said wealth management should ideally combine financial and investment advice, accounting and tax services, retirement planning and estate planning.
Ajayi who was represented by an official, Ada Ijara, stated that from their professional experience, wealth acquisition process is not complete without adequate plans to ensure preservation from one generation to the next.
Originally published in The Guardian