Conversation with Buntu Bam... Financial Adviser at ALEXFORBES

Management of finances and investments, whether for an individual or an institution is the road to prosperity and peace of mind; and like a road it has hills and valleys, curves and speed bumps as well as potholes. To arrive safely at the destination, one needs a guide – a financial adviser. Municipal Focus talks to Mr Buntu Bam, financial consultant at Alexforbes.

Municipal Focus (MF): How long have you been a financial adviser? And how long have you been at Alexforbes?

Buntu Bam (BB): I have been in this industry for 11 years. I started out as an intern in the healthcare division of Alexforbes and then moved on to be an associate consultant and then a financial consultant (Adviser) two years later.

MF: How much money should one have in order to benefit from having the services of a qualified financial adviser?

Mr Buntu Bam

BB: There is a misconception that a certain amount of money, and a lot of it is required for one to engage a financial adviser. No. At Alexforbes, members of an institution that use our services have automatic free access to individual consulting services. Cost will only arise once an individual appoints an adviser.

MF: When is it the best time to start engaging the services of a financial adviser?

BB: An individual should engage a financial adviser as soon as earning a salary. An institution should consider a financial adviser for the benefit of its employees, particularly the pension that will be provided to its employees as soon as it gets into business. MF: Why do you think they should engage so early?

BB: I am a long-distance runner and the journey through life is like running a marathon. It needs training, discipline, commitment and focus on a faraway goal. The sooner one starts to plan for one’s financial future, the more likely it is that one will meet one’s objectives. It took me disciplined training and running in three marathons in the Eastern Cape to be ready for the Two Oceans in Cape Town. And the ultimate goal is indeed to run the Comrades and finish within the medals time. It is a sporting journey for me – but it has also taught me the discipline needed to plan long-term financially and to spend right just like eating right.

MF: Is it better to be an independent adviser or be part of an organisation like Alexforbes?

BB: As a financial consultant I am the Adviser, but I am backed by Alexforbes which provides in-depth research and holistic solutions that will be tailor-made to suit the client’s needs.

MF: What is the benefit of being attached to a company such as Alexforbes?

BB: Peace of mind for the client in knowing that you are not dealing with someone who will be here today and gone tomorrow; backing me is Alexforbes that was formed in 1935. There is an experienced research team that supports my work on the advisory – so you are not really dealing with one mind. The company also provides continuous training and development to the financial adviser which benefits the clients at the end of the day.

MF: What are the main products/ services that a client can obtain from this relationship?

BB: Critical to note is that our objective as financial adviser is a long-term relationship to manage the client’s long-term financial needs and plans. We are not productdriven, but relationship-driven; we want to support our clients and their members to preserve their earnings – so we assist with budgeting, saving, setting up wills, risk assessment and working towards financial goals after retirement for individuals. When clients consider products, risks and plans, we assist in reading and simplifying the ‘fine print’.

MF: Where investments are made, performance of portfolios is usually a sticky issue. How do you and Alexforbes rate yourselves in this regard?

BB: Investments are affected by markets which no individual or company can control. To ensure that there is risk mitigation and growth in favour of our client Alexforbes uses the multi-manager approach where we combine a number of single asset managers into a portfolio to ensure that the client ‘does not put all their eggs in one basket’. Of course this is backed by extensive research and continuous evaluation from our highly experienced team.

MF: There are many ‘financial advisers’ out there – many of whom offer ‘get-rich-quick’ © opportunities in these difficult financial times, how does a client choose the correct one?

BB: One should start by being sceptical about making money quickly. The client should also request the profile of the adviser and research if they are qualified or trained to do this. Then the client should check if the financial adviser is registered with the right regulatory authority.

MF: What is the biggest myth about financial advisory that you have encountered in your tenure in this industry?

BB: There is a view that financial advisers are there to sell a product, get commission and disappear. This is the behaviour of a few bad apples. We are there for the long haul, until an employee retires, and after retirement as well. We may have to face their loved ones who remain after they pass on – so we want to give advice that will be beneficial in the long run. At Alexforbes we want to be there at every changing stage of our client’s life: marriage, divorce, having children, educating them, retiring and your will when you pass on.

MF: What pitfalls that should be avoided have you noted in your 11 years in the industry?

BB: When employees resign or are retrenched, they withdraw all their pensions and think they want to settle debts or buy that new car or a house. This will affect them when they retire and have no income. Also at retirement people want to build or buy bigger houses and buy new cars when they should consider their age and rising medical requirements and costs. They should be scaling down instead. If they have not saved towards that new car or house, don’t buy it.

MF: Will getting a financial adviser not pin a client down to products from only one company?

BB: At Alexforbes we are not driven by particular products, but by providing holistic solutions that our members achieve their financial goals and retire debt free with good healthcare. Some of the products we may recommend are not ours. We even provide free financial planning sessions for member/employees or our clients and encourage them to use this service.

MF: In South Africa it is often said that individuals are at risk of not being able to save enough to maintain their current lifestyle at retirement age. Is there truth in this statement? How do you mitigate for it?

BB: Sadly this is true. Only 6% of South Africa’s workforce retire comfortably – at all levels, from blue to white collar. Alexforbes goal is to increase this number. Education of members and students before they start working is key. That is why we offer free education services to institutions and corporations. I was born in Mthatha in the Eastern Cape and studied financial planning in Gqeberha. I continue to do most of my work in this province because I want to plough back by educating our community about the importance of financial planning. To quell the myth that financial planning is just a funeral cover and a stokvel. As a family man I know these two are important, but they are not everything. Alexforbes is also committed to this community’s education and has a battery of advisers available to run sessions for students and members on request.

MF: The high cost of private healthcare is one of the major concerns for most employers and individuals. How do you assist them in this area?

BB: We have a healthcare division that can assist employers and members. Our advisers will also assist in planning for healthcare at retirement, where one needs it the most.

MF: What would be the main reason why an individual or institution should engage your services and those of Alexforbes?

BB: We are committed to ‘journeying with our client’ throughout their life. The service I provide is backed by an experienced and diverse research team to ensure that a holistic but custom-made solution is provided to the client. We want our clients to meet their financial goals and for our members to retire debt-free with the level of comfort they want at that stage. It is a life-long journey. 

CONTACT DETAILS

Tell: 011 269 0000 Email: info@alexforbes.com

Web: www.alexforbes.com

Address: 115 West Street, Sandton, 2196