A Brokerage Account is Becoming More Mainstream in The Bahamas

Fri, Aug 17th 2018, 04:39 PM

A lot has happened since Royal Fidelity set up its investment and advisory service on Frederick Street in Nassau twenty years ago.

Today, its experts advise on not just the country’s largest corporate mergers and acquisitions and initial public offerings but also to an ever expanding base of individuals anxious to learn and capitalise on the firms’ knowledge base of creating and managing wealth.

Belinda Payne is the Manager of the Brokerage Department and after 10 years in an oft times variable economy she still preaches the gospel of the Brokerage Account as a first step in generating income to build meaningful individual wealth.

“I think traditionally, a large sector of Bahamians have in their mind-set that the only way to save for retirement is to invest in apartments to get the rental income.

I want to show them that there’s more ways than one to earn an income.

That if they open a Brokerage Account with us I can explain to them, show them, that they can have many different kinds of investments – bonds, preference shares, local stocks, mutual funds, that can change their thinking about money and how to keep it, and grow it at a better interest rate.

We can give their money a future!”

Ms. Payne stressed that a Brokerage Account opens the door to a whole new understanding of money management and she’d like to see more young people coming in. 

“Regardless of their age, I tell them if they’re serious about taking control of their money, then a Brokerage Account is the right way to start!

It’s a great first step in money management and wealth creation, and I feel strongly about how important it is for young persons as well as those who’ve already got a financial start, to begin understanding and trusting the process. .

I think it teaches them a lot and gives them something else to do with their money as opposed to just putting it in the bank and or actually wasting it. I say to my clients, ‘It’s not how much money you make it’s how much you save that really matters.’”

Ms. Payne explained the Brokerage Account as the vehicle to manage investments.

“The owner deposits cash into it to buy appropriate investments, usually related to their age, current financial standing and life goals and objectives.

The Brokerage Account keeps track of everything including cash which can be added to at any time.”

When asked if there was any one time better than another to begin investing, Ms. Payne said anytime is good, but right now was particularly good.

“Right now it’s a low interest rate environment – the banks don’t really want to pay you any interest. So what better time to seek out alternative income streams?” she questioned. Like, for instance, how BPL recently gave a package.

Persons are coming in from the 40-45 age-group to say, ‘We’ve got this money. What can we do with it with you?’”

“The majority of persons I deal with are usually older because, besides walk-ins, I get a lot of referrals from my existing clients.

So when referrals they come in, they’re usually looking for preservation of capital; they’re looking for income, so we’ll discuss the products that I would suggest to them, and then once we’ve done that they’re usually ready to open an account.”

“I get a lot of ‘walk-ins’ who say ‘I just want information, I just want to find out because I don’t really know enough about it.’

I tell them, whilst preserving your capital we offer you a better return on your money, your investment, and I show them the figures.”

“Sometimes there’s a fear, like, ‘Is this for real? Am I really going to get 6% return or 8% return, and what are you guys getting for that?’

They ask me, ‘what’s it going to cost me’ and ‘am I going to lose my money?’ Over time I’ve had a few clients call me and say, ‘You know, Belinda, I did an investment with you and I took a chance and I was afraid, but not anymore.’

They’ve been pleased with themselves for having the courage because everything has worked out.”

 

 

 


Belinda Payne is the Manager of the Royal Fidelity Brokerage Department and is passionate in her belief that a good first step in money management and wealth creation is to open a Brokerage Account.

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