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Business Owners

Business owners often have the majority of their family’s wealth tied up in their company. They are often so focused on building and running their business that they have little time to think about their personal financial position, risk management and long-term multigenerational planning.

Key Issues How We Can Help
Balancing the trade off between business and personal income needs. Cash flow management and tax advice.
Financial wealth concentrated in their business. Develop strategies to build assets outside of the business entity.
Time poor and struggle with work/life balance. Administration services to relieve time taken in managing portfolios.
Business reliance on key individuals. Manage risks by establishing appropriate insurance cover and ensuring succession planning is in place.

Client Case Study

The Client

  • Mark and Wendy own and run a successful manufacturing and service business.
  • Whilst they had assets within superannuation, the majority of their wealth was tied up in their business.
  • They held insurance policies but these had not been reviewed for some time.

Their Problem

  • Mark and Wendy wanted to develop a plan to use their free cashflow to diversify their assets away from the business and ensure they had liquid assets at retirement.
  • They were concerned about the fees they were paying to their previous financial adviser.
  • They wished to review their need to continue their insurance policies given their changed circumstances since the policies were established.
  • They wished to diversify the assets that they held within their superannuation fund.

The Solution

  • We reviewed Mark and Wendy’s situation and assisted them to develop a plan for their eventual retirement.
  • We recommended changes the underlying assets held within the self managed superannuation fund.
  • After analyzing Mark and Wendy’s need for insurance we advised them to cancel their existing policies.
  • Private Capital Advisers were engaged to provided:
    • Strategic Financial Planning Advice
    • Portfolio Administration
    • Investment Advice
  • Their Accountant provided tax, audit and financial statement responsibility.

The Benefits

  • Mark and Wendy had peace of mind that they would have access to a flexible income stream in retirement.
  • By cancelling their insurance policies they saved approximately $12,000 per annum which was then able to be redirected to accumulating assets for retirement.
  • The ongoing investment and advice fees that they incurred reduced by $6,500 per annum.
  • The superannuation fund was invested in a broader range of assets.