this month, a UK-based company, Inmarsat launched its next
generation satellite over the Indian Ocean. This system
promises to deliver 16 times the current capacity, and 25
times receiver sensitivity, in mobile phone, and Internet
We cannot fail to recognise the power of alliances, in tomorrows
market, and we must forge similar alliances with people
in-the-know, as we begin implementation of plans for our
own financial efficiencies.
Over the last three weeks we discussed the quality of the
financial advisor with whom we would form these alliances
to grow personal wealth.
We established that truth and honour are our entry doors
and our exit doors and that we must seek out the professional
advisor, with whom we develop a relationship of trust.
Now we begin the implementation of our personal financial
plan. But let us recap the 14 recommendations thus far.
The first step was to assemble and organise all personal
data in an ordered reference file.
Second, we sought to establish the various personal and
family goals and objectives, over a ten to 15-year horizon.
That also included the short-term goals and objectives,
over the next 12 months.
A third and vital step is the identifying of the issues
and problems that face the individual and family, immediate
as well as evolving.
We had determined that it was necessary to write these down
as a point of reference against which we can double check
and realign, should we become despairing.
Individual net worth
As a fourth position, we saw the need to record the various
assumptions which serve as background to the initiatives
we hope to take. This would include an economic assessment
of the current environment, and government policy. In particular:
personal taxes, tax shelters, savings incentives and long-term
Such assumptions will allow intelligent guesswork about
currency fluctuations, inflation, and rates of return.
The fifth step was to establish individual net worth. We
would record all debt, and liabilities, and all our assets.
This part of the process can be very lengthy and drawn out,
either because some people have little bits of assets in
many places, here and abroad, or because some of us are
simply ashamed to admit that we have nothing to show.
Another reason that this is a protracted affair is because
many assets are not properly titled, and we cannot easily
establish who is the rightful owner. Additionally, we have
a tendency to keep our documents all over the house and
This is a truism!
Sometimes I wait two to three weeks for a client to locate
a single document, simply because he cant remember
what he did with it. Sometimes the lawyer, the accountant,
or the banker is holding the document, and the client cannot
If you are serious about accumulating wealth, you had better
establish a file, drawer, box, and a notebook, in a specific,
secure place, for all your documents. And also store photocopies
of those documents, in a different locationin the
event of fire/flood etc.
Next we examined the intricacies of cash flow management.
This required a statement of the sources and uses of income,
for the current year, and other relevant years. This exercise
serves to focus the client on his own habits which reflect
efficiency or wastage.
In an age when the Internet can capture and store information
and give you access virtually anywhere in the world, almost
at the speed of light in a vacuum, can we too get on board
with our data, and set the stage to plan at phenomenal speed?
To be continued next week!
n Raziah Ahmed is a registered financial consultant.