Creating wealth for your clients

What if intermediaries could help their clients create real wealth, so they can retire earlier and wealthier?

Financial intermediaries are tasked with mapping the journey to retirement for their clients, putting the plans and structures into place to ensure their clients will have sufficient income from their pension fund or investments, created through diligent savings over their 30 year working life, to retire in relative comfort.

The sad reality is that only 5% or less of South Africans will be financially independent when they retire. Despite financial intermediaries' best efforts, the current model of retirement funding is fundamentally flawed, as confirmed by these sad statistics.

An alternative approach

But what if, instead of helping clients save passively for a retirement date, financial intermediaries could assist their clients to actively create wealth? What if financial intermediaries could provide their clients with the knowledge, insights and opportunities to retire younger and wealthier? There is an alternative approach to creating wealth for retirement.

Consistent performance

According to Absa's statistics, residential property rented out to generate an income, based on the gross internal rate of return (IRR), has beaten most other asset classes, as well as inflation, over the last 20 years.

Best advice

So, would it be "best advice" if you advised your clients about the benefits of investing in property? "Only if you also point out the risks involved and empower your clients with the information and tools they need to make informed decisions," says Pierre van Wyk, MD of Property Bargain Finder.

"No investment strategy is without risk, which is why Property Bargain Finder has gone to great lengths to package all the elements for successful property investment – from training, to pre-screening property investment opportunities, providing assistance with obtaining the right finance, and offering full rental and management support."

Exciting new approach for intermediaries

Financial intermediaries can not only differentiate themselves in the market by offering their clients wealth creating strategies as opposed to retirement plans, but can also add a lucrative income stream to their existing business.

"By partnering with a reputable property investment club, intermediaries can simply slot this investment alternative into their existing offering," says van Wyk. "In this tough market, intermediaries need to investigate new alternatives to add real value to their clients, by helping them to retire younger and earlier, while building a great alternative income stream at the same time.