Financial work/life renovation

Client: Scott & Shelly

What were their challenges:

With a rapidly growing business in its infancy, inadequately structured for growth and tax effectiveness, existing shareholder agreements incorrectly executed, their existing accountant performing basic bookkeeping services but not providing advice, they were swamped.

A large home loan debt with the desire to upgrade the family home in near future, four young children with plans for private schools and a desire to have funds to help them later on they knew they had to get their finances organised.

But with one primary income earner as the key person in the business and no downside protection in place, along with low super balances given they had been living overseas for a number of years and had not paid themselves super since starting their business. This coupled with being time poor between business and a busy family life, but with plenty of surplus cash and a good ability to save but not successfully, this couple’s finances were ripe for renovation.

What did they overcome:

We were able to break down the complexity of what they were facing into manageable lots. We could then provide advice on each smaller challenge and project manage the implementation of the changes needed, lifting a huge weight off their shoulders. Once the financial plan and right structures were in place our client’s were able to focus on the business and their family life knowing that their financial world was and is on track and they had ongoing access to advice when they needed it.

How did I help:

We gave them advice on the correct business structure and equity arrangements, including their specific legal and taxation issues. We also built in the the right framework for future growth and asset protection.

Regarding their cashflow advice we included a budget that could be monitored, and planned for effective use of any surplus income, keeping cash reserves for emergencies, clearly separating everyday living from investing and business activities. Structuring their home loan repayments to enable their home loan debt to be paid off in under 10 years.

We devised a regular investment plan allowing flexibility to save tax effectively for the children’s schooling and future funding needs. Applied a Super investments and contributions strategy to tax effectively save for retirement. Provided advice on protection strategies so that funds are available when needed so that bills can continue to be paid, their lifestyle is protected and overall financial plan is not derailed. Lastly, Estate planning advice covering business and personal assets, and including arrangements in place for the children.

We will review the plan regularly with our client’s and adapt strategies to life and business changes.

What did they learn that I can share:

When running a successful business and a busy household, and with so much information available, it’s sometimes hard to know where to start. But the earlier you start and get advice, with help, you can overcome the financial obstacles with the right structures in place to keep on track to achieve your goals.

I have an amazing opportunity in my financial advisery role to make a difference to people’s lives by helping them to achieve what’s important to them.