Your Chama has done all the right things. You have made money, invested wisely, saved, and been smart with your money thus you are a well-established, wealthy Chama. But here’s your problem: All of you in the Chama are in full-time employment thus too little time on your hands to manage your investments properly. What do you do? Well, if you want to handle your investments well, turn the reigns over to a money management team to help you. Such as team includes; a financial advisor, a lawyer, an accountant. So what can these people do for your Chama?
This is the guy who makes your money grow, so he must have the ability to put your money in a variety of sectors, including money markets, stocks and bonds. How your financial advisor gets paid often depends on the types of investments he makes for you. As for financial advisors who place your money in stocks and bonds, you’ll probably have to give them a percentage of the total funds being managed, in addition to an annual fee. Again, the numbers vary with the size of the account. You can go for independent financial advisors; contacts available in the yellow pages or opt for company-based financial advisors in companies such as The Old Mutual.
Look for a good business lawyer. You’ll want a lawyer or a firm with a solid practice covering the areas of real estate, estate planning and tax. While a lawyer won’t make you money directly, his job may be the most important of all. Why? He can keep you from losing all your money due to bad deals and dishonest Chama members. Of course, this means that you will have to keep your lawyer in the loop about everything. Though you may need to fork out legal fees to retain your lawyer, it is worth every penny for your peace of mind.
This is the guy who will handle your day-to-day Chama financial matters. He will work closely with the Chama treasurer to make sure bills are paid, proper banking is done. In essence he will shape your affairs with an eye toward saving you money and keeping your money safe. In other words, your accountant is the team player you’ll probably talk to the most.
While some accountants charge by the hour, the truth is that your Chama affairs are probably too complicated to manage in a few hours. Because you’ll need ongoing, focused attention, you’ll likely pay a monthly rate, which should include the basics of handling your bills, making sure that people in the Chama pay their contributions on time and keeping your financial affairs in order.
Assembling and hiring the right professionals may seem like a challenge, but once you have on board the right people; you should find peace of mind. When you’ve found a professional however, there are two things you should keep in mind.
First, always double-check their work to make sure they’re honest. Trust is great, but when it’s your money, you can’t be too sure. Second, always be on the lookout for a better professional. It is nice to work with the same people on a regular basis, but if you can make more with someone else, do it. It is not personal, it’s business.
This post was written by Chamasoft
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