Meet our clients living the ‘healthy wealthy happy’ life today
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 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.
HOW WE HELPED IN PARTICULAR
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The amount of super you’ll need when you retire depends on your big costs in retirement and the lifestyle you want. The Associate of Superannuation Funds of Australia (ASFA) estimates for a single $44,224 a year and for couples $62,562 a year is how much you may need. This is only an indicator and our advisers assess everyone’s individual circumstances.
The fees we charge for financial advice is only a fraction of the value we derive for our clients, meaning our clients are always better off after seeing us. Rarely do we encounter a new client invested appropriately for their needs, with adequate risk protection, structuring and estate planning provisions in place. Even small tweaks to a financial plan over a long period of time can result in drastically better outcomes for our clients which eclipses the fees of the financial advice. Additionally, you can opt-out of an ongoing fee arrangement at any time.
In our discovery meeting with you our advisers discuss the initial advice fee and the ongoing fees associated with our services.
After our initial phone call to discuss why you are seeking a financial adviser, we arrange a discovery meeting that outlines what is important to you, your current position, our areas of advice, our approach. We then present a Statement of Advice (SoA) to discuss your goals and our recommendations and go through the steps of how to proceed to the implementation stage. After signing the SoA, we discuss your questions, get you to sign the authority to proceed and complete any application forms before implementing the recommendations detailed in the SoA.
One thing to consider is the interest rate on your home loan in comparison to the rate of return on your super fund. Before making a decision, it’s also important to weigh up your stage in life, particularly your age and your appetite for risk. Whatever strategy you choose you’ll need to regularly review your options if you’re making regular voluntary super contributions or extra mortgage repayments. As bank interest rates move and markets fluctuate, the strategy you choose today may be different from the one that is right for you in the future
We know the impact of good holistic financial advice can make and we have the life experience, technical capability and quality support team that can make that difference for you. We’ve empowered over 1000 families through the delivery of great financial advice, to be healthy, wealthy and happy.
We believe the true value of financial advice isn’t found in dollars and cents (although this is important too!) but in the peace of mind a financial plan can provide. It’s knowing where you want to go and how to get there, with a dedicated team behind you every step of the way.