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Establishing a wealth management plan for partners and directors

Personal wealth plan and lifestyle plan and financial plan for partners of professional services firms

Your personal Wealth Plan / Lifestyle Plan should include strategies for accumulation, preservation and distribution at every life stage. Investment strategies typically include:

  • Property
  • Managed investments
  • Personal insurance
  • Superannuation

Developing your plan

We would encourage you to meet with one of our professional advisors who will listen to your situation and understand in detail what you want to achieve both now and in the future stages of your life, and the provisions you want to make for your family.

Alternatively, you can develop your own wealth plan. This typically involves "working backwards" through each life stage and providing a realistic financial scenario of income and outgoings. 

You will then need to develop detailed investment strategies to fund each stage and to also ensure that taxes are efficient and not detrimental to any savings and investment plans.

However even though it may seem like you can generate a better return by saving costs on professional advice, we caution against "DIY" for the following reasons:

  • The time constraints to research, implement and review lifestyle plans usually means that cash becomes the default asset class and nothing else changes
  • Insurance policies can be misworded, or worse, lapse
  • Assets can be purchased in the incorrect name, resulting in expensive stamp duty and other taxes being incurred, and additional costs in estate planning further down the track

By all means, be involved in creating your wealth and lifestyle plan in conjunction with your adviser, but your time will be better served in your core business generating cash.

Tips for success

  1. Formulate a household budget that provides the basis for understanding what is required for living and what is surplus and is available for investing. This is sometimes known as the "bucket approach". This is the starting point for all successful lifestyle plans
  2. Analyse whether the surplus will achieve your goals and objectives. If the investment bucket cannot fulfill your goals, then it is better to start the "correcting" process early. Either goals need adjusting or living costs need to be reviewed. Weighing up the importance of tomorrow with the enjoyment of the now is crucial for the successful implementation of a lifestyle plan
  3. Make sure the right assets are invested within the right structure. Very expensive to change and can cost valuable cash flow annually. A well-documented lifestyle plan will cover which people / entity will hold what assets now and into the future. That way any transactions that require a decision in order to successfully make the investment can be quick and precise
  4. The greatest asset is the ability to generate cash flow and this needs to be protected via insurances. Insurances also protect loved ones and dependents if something unforeseen happens. If the worst does happen, your loved ones will appreciate not having to make hard decisions in difficult times or having to "fire sell" assets in order to maintain their current lifestyle
  5. Revise and update your plan regularly. It is a moving document, much like a business plan for a business. The most successful lifestyle plans are continuously reviewed and adjusted where appropriate. It is fantastic to develop a lifestyle plan, but it is "dangerous" not to refer back to the plan or update the plan as circumstances change

Archer Gowland can assist you to develop, review and proactively implement your wealth creation and lifestyle plan.

Want more information on how you can increase your wealth and protect your assets?

Instantly download the FREE Archer Gowland Guide (below) "Wealth Creation to Fund Your Ideal Lifestyle - A FREE Guide for Partners of Professional Services Firms". We provide an indication of how much you will need at retirement, the changes in ATO interpretation of partner remuneration, how to generate tax efficiencies, market opportunities, a self-assessment of your financial situation and how to establish your own personal wealth plan.

You are also welcome to contact Ian Walker from Archer Gowland on 07 3002 2699 for a free and confidential discussion regarding your personal situation.

Archer Gowland Wealth Creation and Financial Planning Guide for Partners and Directors of Professional Services Firms in Brisbane

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