You Don’t Know what you Don’t Know

Posted on: October 24, 2014
Posted by: Bob Budreika

Self Managed SuperannuationThere’s a simple saying I often use: “You don’t know what you don’t know”.  In a roundabout way what this phrase is saying is that making important decisions without getting all the facts can have very long lasting consequences.  There are lots of examples where this rings true.  I can think of my own situation where, on occasions, I would’ve saved time, effort and money had I opted to getting sound advice and support.

Financial Planning is a very different service to anything I know. Why?  Because life goes on whether people engage with them or not.  Seeing an adviser is purely optional.  Unlike other professionals such as accountants, there’s a legal requirement to get your tax done each year.  When we’re unwell we see a doctor or take our car to a mechanic for repairs.  There’s an obvious need and reason to take action.  It gets back to ‘you don’t know what you don’t know.’

I believe that many people are heading for a financial disaster of some sort but don’t know it.  The disaster might not mean they’re wiped out but with sound advice and support they could’ve saved time, money and effort.  Without labouring on this point, I’ll give a couple of examples.

Purchasing farm land in the most cost-effective way

One of the areas we specialise in is helping farming families purchase farm land in the most cost effective way.  The most common method is to borrow from a bank and make repayments.  A far more cost effective way is to use the tax advantages of superannuation.  There are significant savings, often in the hundreds of thousands of dollars.

Succession planning

In our last article Daniel wrote about succession planning which is a fancy term for having a plan to transfer a business to the next generation.  This is one of those things that most farmers know should be addressed but sometimes leave far too long.  Business succession plans provide confidence, peace of mind, security and direction for all family members.  It’s the best way to prevent legal issues and break up of families.

Direction and purpose

The most common reason for people engaging with us is because they want to establish a plan that gives them direction and purpose.  It’s a broad statement but what they’re really saying is that they are so focused on what happens day to day to do it themselves.  Establishing a meaningful plan is both motivating and rewarding.

The starting point with all the work we do is to have a good understanding of a person’s situation and discover those things that are most important to them.  This is the basis to providing sound financial advice.

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