By Reon Janse van Rensburg
Before one comes up with a roadmap to financial freedom, it is important to first understand what financial freedom is. Then one can look at what has changed so much for this road to have become so difficult, and from there we can draw our own roadmap for the future.
Financial freedom is when the income from your assets exceeds your expenses. To reach that point is a difficult uphill road for everyone, and most people are happy if they reach it when they retire. With a good roadmap that is followed rigorously it can indeed be reached.
Solidarity Financial Services (SFS) was established to give independent and honest financial advice to Solidarity members and non-members. SFS has the services of certified financial advisors specialising in investments, retirement planning, dealing with retrenchments/ resignations, life insurance and disability cover, tax planning for individuals, and offering medical planning and cover. The advisors also offer basic estate planning services.
SFS’s service is advice-driven and not sales-driven, which distinguishes it in many respects from the industry norm. Clients get advice relating to the basic pillars of financial management in a household. From there, certain risks are identified, and a variety of solutions are proposed.
SFS is a wholly owned subsidiary of the Solidarity Investment Company and, through its income, it makes a key contribution to the Solidarity Movement. It is also through its structure that SFS distinguishes itself from the norm in its industry. SFS’s revenue is based on models founded on sustainability and long-term client relationships. As such, it is important to SFS that clients get value for money when it comes to the service and products they offer.
To ensure a worry-free retirement one day, you have to start from early in your working life to set money aside for the day you stop working. There are so many people who believe that today’s pleasure is more important than tomorrow’s woes and, as experts warn, this is one of the biggest mistakes you can make.
Research shows that people can now easily live to the age of 90. So, if you retire at 65, you only have 40 years to save religiously to be able to get by without an income for at least 25 years after retirement. If you want to convince yourself to put your shoulder to the wheel, just look at your parents – either to follow in their footsteps or to avoid the mistakes they have made.
To build all the institutions that constitute Solidarity’s network of work will require capital of hundreds of millions of rands. Solidarity decided to use the Solidarity Investment Company to transform the Solidarity Property Company into a capital investment instrument, Kanton Investments, which will be responsible for the development and management of property.
Kanton Investments was created to support the institutions of the Afrikaans community in general, and more specifically those of the Solidarity Movement in creating “lebensraum for Afrikaans”. The Solidarity Movement has a need to expedite the implementation of its plan for the Afrikaans community, especially with regard to the establishment of appropriate training institutions such as Sol-Tech and Akademia.
Kanton Investments will offer service on three fronts mainly:
- The development of an investment portfolio by means of which the necessary capital can be raised with the help of investment from the public to develop a property portfolio. In this way, investors will not only get a cultural dividend in the form of creating more lebensraum for Afrikaans, but they will also get a market-related return on their capital;
- The development of training facilities for Sol-Tech and Akademia initially, but at a later stage also for other training institutions, which may include the construction of student residences too. The identification and purchase of suitable sites and the construction of buildings form part of this service; and
- The maintenance and management of those sites, as well as of the other properties currently in Solidarity Properties’ portfolio.