PERSONAL
WEALTH
PLANNING
BY MUNYUMBA MUTWALE
FINANCIAL ANALYST AND INVESTMENT ADVISOR
THE EMOTIONAL
JOURNEY
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FINANCIAL RADICAL
TRANSFORMATION
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THE JOURNEY OF RADICAL TRANSFORMATION
THE CHANGE THE CHANGE THE CHANGE
BLOCKERS BARRIERS BATTLES
DELAY YOUR INDENTITY 1. Fear of Loss of Control
2. Fear of the Unknown
3. Fear of the Unexpected
DISCOURAGEMENT YOUR ATTITUDE 4. Fear of Loss of Status
5. Fear of Discomfort
YOUR FOCUS
6. Fear of Incompetence
DISSAPPROVAL 7. Fear of Added
Responsibility
YOUR PRINCIPLES 8. Fear of Being or Having
DOUBT Collateral Damage
9. Fear of Past Trauma’s
These are the External Voices These are the internal changes
that Stop you from getting needed to successfully realise Resurfacing
started in the first place OUTER CHANGE 10.Fear of Incoming Pain
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Let’s Deal With DELAY…
There is no such thing as the perfect start,
there is just A START
King Solomon in Ecclesiastes 3:11 Said
‘‘ Farmers who wait for
perfect weather never plant.
If they watch every cloud,
they never harvest ’’
While a Good start is integral to a Sprint,
it is irrelevant to a Long-Distance Marathon
There is no such thing as the perfect start,
there is just A START
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Let’s Deal With DELAY…
In the words of the legendary African -
American tennis pro Arthur Ashe
‘‘ Start Where you are
Use What you’ve got
Do What you can ’’
In this investment we are going start at
Your Current Income
Your Current Savings and Investments
Your Current Age
Your Current Knowledge Level
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FINANCIAL LIFE
PLANNING
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THE WEALTH PYRAMID
ACCOMPLISH
PURPOSE
LEAVING YOUR
LEGACY
LOVED ONES
MORE FREE TIME
TAKEN CARE OF
FREEDOM FROM WORRY
ORGANISATION & CONTROL
ABOUT BASIC NEEDS
RETIREMENT EDUCATION TRUST
PLANNING SAVINGS FUNDS
ESTATE HEALTH TARGET ANNUAL
PLANNING FINANCING SAVINGS SAVINGS
ASSET ASSET SECURITY INVESTMENT
MANAGER[S] ALLOCATION SELECTION PLANNING
INCOME ASSET TAX DEBT CASH FLOW
INSURANCE MIX
GENERATION MANAGEMENT MANAGEMENT MANAGEMENT
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THE THREE AREAS OF LIFE FULFILLMENT
ACHIEVEMENT LEGACY CONTINUITY
Achieving my Buildings, Leaving moral
Life’s Purpose, Projects, and competent
Dreams and Businesses, people behind
Institutions,
Aspiration to continue my
Assets,
Systems, work / my
Inventions, Ideas name
and Memories
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RICK WARREN’S 5 PURPOSES OF LIFE
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WHY IS MEANING / FULFILMENT IMPORTANT
‘‘ Yet what we suffer now is nothing compared to
the glory he will reveal to us later ’’ – Romans 8:18
Your ability to endure the time and consumption
sacrifices required to save and invest are
contingent on the Value of the Future outcome.
To consistently commit to saving and investing
one has to have a good future reason that is
vividly painted in your mind
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THE 4 PILLARS OF FINANCIAL FREEDOM
1 2 3 4
FREEDOM FREEDOM FREEDOM FREEDOM
from worrying from worrying to allocate your from a life of
about meeting about the time as you
your wellbeing of choose in the CHAOS and
BASIC your pursuit of DISORDER
NEEDS LOVED ONES MEANING
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THE TECHNICAL
UNDERSTANDING
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A BRIEF HISTORY OF MONEY FROM
CREATION TO CREDIT
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IN THE BEGINNING TIME WAS MONEY
3 Then God said, “Let there be light”; and there was light. 4 And God saw the light,
that it was good; and God divided the light from the darkness. 5 God called the light
Day, and the darkness He called Night. So the evening and the morning were the
first day. GENESIS 1: 3 -5 [The creation of a DAY]
14 Then God said, “Let there be lights in the firmament of the heavens to divide the
day from the night; and let them be for signs and seasons, and for days and years;
GENESIS 1: 14 [THE CREATION OF A YEAR]
28 Then God blessed them, and God said to them, “Be fruitful and multiply; fill the
earth and subdue it; have dominion over the fish of the sea, over the birds of the air,
and over every living thing that [h]moves on the earth.” GENESIS 1: 28
[THE PURPOSE OF TIME]
God creates man with the intention and abilities to be CREATIVE,
PRODUCTIVE, MULTIPLY AND EXPAND for the purpose of ELEVATION
and TIME IS THE ASSET with which he is to do this.
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THE FALL OF MAN AND THE INCREASED VALUE OF TIME
In the sweat of your face you shall eat bread
Till you return to the ground,
For out of it you were taken;
For dust you are, And to dust you shall return
GENESIS 3: 19
3 And the Lord said, “My Spirit shall not strive[a] with man
forever, for he is indeed flesh; yet his days shall be one
hundred and twenty years.” GENESIS 6: 3
God now makes time FINITE and in Genesis 6
he makes it scares which now gives it value
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WHAT IS THE ECONOMY
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THE TIME VALUE OF THINGS
The average paid value of 1hr of Work in Zambia is K35
Let’s look at consumer prices in the form of SALARIED HOURS WORKED and
think about how long it would take to produce these same items from SCRATCH
25KG MILLIE MEAL 1 x LIVE CHICKEN 1X TRAY OF EGGS
= K139.40 = K51.90 = K63.35
= 6 hrs. of Work = 2 hrs. of Work = 2 hrs. of Work
1KG LOCAL RICE 400g x KAPENTA 500ML FRESH MILK
= K24.13 = K28.90 = K12.35
= 1 hr. of Work = 1 hr. of Work = 0. hr. of Work
2.5L COOKING OIL 2KG SUGAR 1KG FRESH FISH
= K117.60 = K43.23 = K49.99
= 4 hrs. of Work = 2 hr. of Work = 2 hrs. of Work
1KG ONION 50KG CHARCOAL 50KG CEMENT
= K15.15 = K80.85 = K146.14
= 1 hr. of Work = 3 hrs. of Work = 6 hrs. of Work
WE SPEND MONEY TO SAVE TIME
BUT WE INVEST MONEY TO CREATE TIME
160 YEARS OF TRANSFORMATION FROM CASH TO CREDIT
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85% OF THE MONEY IS ZAMBIA IS CREDIT
Only 3 In Every K20 in
17 In Every K20 in Zambia is CREDIT Zambia is CASH
CASH
CREDIT
Those who own assets will earn from the CREDIT while those who consume will pay for the credit in
taxes, inflation and interest. You want to be an ASSET HOLDER in a credit heavy economy.
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INVESTING IN
ASSETS
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THE C-P-A-L FINANCIAL MODEL
COMMODITY POSSESSION
Something you buy or receive to Something you own but does not
trade for money and generate a generate income or
margin / profit Free cash-flow. This is a liability
LIABILITY ASSET
Something you owe and Something you OWN that
something that takes cash generates free cash flow
out of your pocket / account and puts it in your account
FREE CASH FLOW is the amount of cash generated from an asset or
activity that is free and clear of internal / external obligations
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THE ACT OF INVESTING
GENESIS 2:10
‘’ 10 A RIVER FLOWED FROM THE LAND OF EDEN, WATERING THE GARDEN
AND THEN DIVIDING INTO FOUR BRANCHES. ’’
You take your stream of TIME BASED EARNED INCOME
INVEST it so that it splits into 4 CASH FLOW / INCOME GENERATING ASSETS
INTELLECTUAL
BONDS EQUITIES REAL ESTATE PROPERTY
Royalties / Residual
Coupon income Dividend Income Rental Income
Income
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How Different Assets Have
ASSET RELIABILITY
Performed Over theDATA IN ZAMBIA
Last 21 Year
AVERAGE AVERAGE
21 YEAR HISTORY VOLATILITY -
% OF YEARS WITH PRERFORMANCE IN A PRERFORMANCE IN
OF ASSET CLASS SPREAD
PERFORMANCE IN POSITIVE PERFORMANCE POSITIVE YEAR % A NEGATIVE YEAR
ZAMBIAN FINANCIAL BETWEEN GOOD
ABOVE INFLATION ANNUAL RETURN NET OF % ANNUAL RETURN
MARKETS AND BAD YEARS
INFLATION NET OF INFLATION
BONDS 95% 10.60% -1.89% 12.49%
GOLD in Kwacha 71% 19.12% -20.84% 39.96%
EQUITIES 57% 36.47% -20.95% 57.42%
REAL ESTATE 50% 4.88% -4.46% 9.34%
CASH DEPOSITS 42% 2.58% -4.98% 7.56%
USD/ZMW 38% 16.85% -15.67% 32.53%
1. Property Industry was tracked using Pension Industry Data
2. Data Collected from LuSE, PIA, BOZ and INVESTING.COM
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TACTICAL
ACTION PLAN
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THE PRINCIPLE
FOR SELF PRODUCTION
Should I do something myself? or
Should I hire a professional? or
Should I just buy the finished product?
T
E
S
MUNYUMBA MUTWALE
T
FINANCIAL ECONOMIST
S.E.C LICENSED
INVESTMENT ADVISOR
YOUR S.I.D.E
The 4 main inputs to developing your
financial / investment strategy
SITUATION
DEMOGRAPHIC, INCOME, FINANCIAL, ASSETS,
PROFESSIONAL, LIFE-STAGE, CIRCUMSTANCES
INCLINATION
RISK APPETITE, EXPERIENCE, PERSONALITY
DESTINATION
HARVEST, HEALTH, HIGHER-ED, HOME-
MUNYUMBA MUTWALE OWNERSHIP, HUGE PURCHASES
FINANCIAL ECONOMIST
S.E.C LICENSED
INVESTMENT ADVISOR EXPECTATION
OUTCOMES AND DURATIONS OF GOALS
INVESTMENT GOALS
1. HARVEST
2. HEALTH
3. HIGHER-ED
4. HOME OWNERSHIP
MUNYUMBA MUTWALE
FINANCIAL ECONOMIST
S.E.C LICENSED
INVESTMENT ADVISOR 5. HUGE PURCHASES
YOUR T.A.S.K
4 components of a Financial Goal
TARGET
SIZE OF THE TARGET IN MONETARY TERMS AND
DURATION OF TIMELINE IN YEARS OR MONTHS
ALLOCATION
% OF SAVINGS ARE ALLOCATED ACCORDING TO
RISK, TYPE AND STRUCTURE
SAVINGS RATE
% OF YOUR MONTHLY INCOME YOU NEED TO
SAVE
MUNYUMBA MUTWALE
KICK FACTOR
FINANCIAL ECONOMIST
S.E.C LICENSED
INVESTMENT ADVISOR VISUAL AND VIVID MOTAVITING FACTOR LINKED
TO PILLARS OF PEACE, FULFILMENT OR WEALTH
EQUATIONS
THE PILLARS OF PERSONAL FINANCE
BUDGET
EARN
SAVE
INVEST
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TO WEALTH BUILDING
In Order BIGGEST TO SMALLEST
1. CONSUMPTION
Х POOR SAVINGS RATES
Х INVESTMENT WITHDRAWALS
2. INFLATION
Х EXCESSIVE CONSERVATISM
Х NOT FACTORING IN INFLATION
Х EXCESS CASH
Х OVER-EXPOSURE TO NON-CASHFLOW
ASSETS
MUNYUMBA MUTWALE 3. EXCESS RISK
FINANCIAL ECONOMIST Х POOR DIVERSIFICATION
Х SPECULATIVE GAINS > CASHFLOW
S.E.C LICENSED GAINS
INVESTMENT ADVISOR Х OVER-EXPOSURE TO EXOTIC ASSETS
Х HYPE INVESTING
Х SHORT TERM INVESTING
THE D-I-K-W MODEL
Understanding, Integration, Application,
Reflection, ACTION, Accumulation, Patterns,
+ INSIGHT FINANCIAL
WISDOM
DECISION MAKING PROCESSES
Ideas, Learning, Notion, Concepts,
Synthesis, Comparison, Thought,
FINANCIAL Discussion
+ MEANING KNOWLEDGE
Organized, Categorized,
FINANCIAL Structured, Useful,
Summarized, Calculated
+ CONTEXT INFORMATION
FINANCIAL Facts, Figures,
DATA
Indicators,
Measurements,
Signals
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Join +1,000 Zambians who have taken the
first steps in their journey towards
FINANCIAL FREEDOM
Introduction to Wealth and Money
Investing in GRZ Bonds
Building a Multi Asset Portfolio
Personal Wealth Management
+ Personal Investment Plan Excel Book
+ Bond Investor Excel Tracker
+ Investment Planning Workbook
MUNYUMBA MUTWALE + Financial Planning Checklist
FINANCIAL ECONOMIST
Pay Mobile Money to Classes
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