The past 18 months has caused many executives, professionals and business owners to question what really matters. In discussions we’re having with clients, they are reassessing what’s important and raising questions about how much longer they want to do what they’re doing, work as hard as they are working or live where they’re living.
It’s unanswered questions such as these, that can cause unnecessary worry and delay or prevent goals being achieved.
In my experience, quelling anxiety and making plans starts with gaining a full understanding of your financial big picture in context of your goals and personal circumstances. Now and in the future.
Once you understand where you’re at and what’s possible, decision making becomes easier. You’ll feel empowered and motivated.
For Individuals
Financial planning has always been about protecting and enjoying the lifestyle of your choice. Lately I’ve been having more frequent discussions with executives and business owners who are reassessing what matters most in their lives and the options available to them for implementing change.
COVID has in many respects, drawn a line in the sand.
On one side is the stress and time demands of careers; on the other is the desire to be more connected to family, friends and to have the time to be more universally fulfilled rather than constantly consumed by work (even during down times).
Decision making around change inevitably comes down to your financial position and answering whether you will have enough, or not, to implement changes in context of: Your personal cashflow requirements, debt, ability to meet tax obligations (particularly related to ESS), where you want live, and if changes in personal and family relationships are a consideration as well. There’s little doubt you’ll need advice.
The opportunity to share concerns with a financial professional is a key benefit, but of greater value is the arms-length financial review that cuts though emotional grey areas to provide facts. Hard evidence provides clarity for understanding financial impacts resulting from change, while identifying options and timelines, whether brought-forward or pushed-back, for achieving the outcomes you want.
For Business Owners
The ups and downs of the pandemic has put a new focus on succession planning. Business owners who had previously considered retirement a long way off or hadn’t considered the idea of doing something else, are now thinking how much longer will they be motivated to carry the responsibilities of leading a team or operating a business.
For business owners understanding your options and whether you will have enough to retire (or do something else) is made all the more complex as your business interests and personal affairs are tightly interwoven. Ultimately, being in a financial position to execute other plans will involve collaborating with your lawyer to ensure the appropriate structures are in place to enable seamless succession and sale, while your business accountant and tax specialist will need to facilitate all-important tax minimisation strategies and your financial planner who will be pivotal in managing how proceeds from your business sale, are managed. And not just for lifestyle requirements now and in retirement, but in terms of your estate plan and financial legacy.
We understand that lives and circumstances change. Addressing the ‘will I have enough’ question is crucial to your financial AND emotional wellbeing, especially in times of disruption. The bottom line is, you can’t leave your financial plans to chance – conscious action is required.
Next Steps…
There’s a saying in financial planning circles that suggests the best time to begin financial planning was 10 years ago, but the next best time is now. The key take-out here is financial planning is required and it will take time.
May I suggest you take a moment to complete our 5-Minute Financial Health Check. It’s a no-strings-attached confidential financial planning instrument we regularly ask our clients to complete.
The very nature of the Q&A format is self-assessing, identifying gaps in financial plans and recognised that plans change frequently (often between one progress meeting and the next).
Please feel confident completing this questionnaire – its purpose is help, not to harass.
Should you wish to find out more, please contact Brett Cribb on +61 (0) 7 3007 2080 or email contact@executivestrategies.com.au
Executive Strategies is a specialised information hub for executives and senior managers who may have founded their own business or who work for growing private, ASX listed companies or government businesses. Its purpose is to provide access to specialist advisers and information that addresses the often-complex issues affecting their personal prosperity.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This information does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.
