Managing the risks

Stan and Mia* were referred to us. They, like so many small business operators, were constantly battling to meet deadlines as well as manage staff, deal with clients and suppliers. Time was their enemy. Although they were working so hard, they felt their ‘wheels were spinning.’

After years of stress and effort, Stan and Mia hadn’t made much financial progress and frustratingly, they had little to show for it. It was quite obvious to us that an investment plan was not their primary need. What stood out was a lack of confidence and direction. We addressed this by first putting Stan and Mia in contact with an accounting practice. By matching Stan and Mia up with this personal support and timely financial analysis, they were now in a position to assess the real progress of their business, which meant they could then make more informed decisions. Furthermore, thanks to great relationship between our practise and the accountants, Stan and Mia get the instant benefit of two firms jointly working in their best interests.

Next, we prioritised the financial planning issues to be resolved. The foundation to the success of Stan and Mia’s financial plan was to properly address the personal risks that they face. We needed to explore the impact that these risks would not only have on their business, but more importantly, their family. Stan and Mia’s existing personal insurances were thoroughly assessed and a program implemented to comprehensively cover major life events including death, total and permanent disability, trauma conditions and loss of income due to sickness and accident. With financial protection in place and ongoing financial analysis of their business, they are now in a far better position to plan for other opportunities going forward.

This has allowed Stan and Mia to focus on purchasing their own workshop, using superannuation as the funding vehicle. They are motivated to make larger contributions than the standard SGC requirements because this will give them a tax effective way of owning property.

Owning this property will benefit their business now and, once they’re retired, lease payments will provide them with a regular income to meet their lifestyle needs.

*Our clients’ real names are protected by our privacy policy, of course.