To have a high chance of hitting a target you must first take careful aim. Often the difference between failure and success is clearly defined goals. Goal setting as the essential first step to the realisation (as in to make real) of a well mapped and quantified plan. As goals are achieved, inevitably new ones will emerge and the plan needs to be adjusted accordingly. Ultimately, the aim is to plan to achieve your financial goals in a realistic, planned time frame.

This is the most powerful financial planning tool in existence. Often overlooked or under-rated the household budget is the essential driver of all financial plans. Your financial habits largely dictate whether you will end up in the 1% of the population who retire wealthy or otherwise. In our experience many clients can do a lot better in this area simply by defining their limits more effectively and following a simple process involving correct cash flow management and about 10 minutes homework per month to keep on track. It does not mean skimping and saving and not having a life, it is about taking better control of your money and ensuring the desired long term financial picture is supported by current money habits.

This refers to how to use your regular income to gain the most possible benefits. It is vital to establish the most effective money management foundation to gain as many strategic advantages as possible. It’s even possible to use the same dollars twice when you know how! Each pay cheque that comes in provides an opportunity to make progress yet for many people the wheels just keep on spinning and the financial vehicle does not seem to budge. Many people are surprised at how small subtle changes can allow far more efficient wealth building while still enjoying the same lifestyle.

Household debt levels have greatly increased in Australia since the 90's. One of the drivers behind this is the property boom which has lead to higher mortgages particularly for those entering the market more recently. Other reasons are the high cost of living and many forms of freely available credit. For many people a high debt level becomes a ball and chain that prevents financial progress. It is crucial to use efficient debt structuring and management to ensure personal debt is constantly being reduced in the most effective way. A special type of debt management plan known as 'debt recycling' can simultaneously build wealth as the personal debt decreases and if implemented correctly will in fact speed up the rate of personal debt reduction over time.

A lot of people could and should be using their Superannuation far more effectively. There are a myriad of strategies revolving around Superannuation including asset allocation, salary sacrifice, risk insurance, wealth accumulation & creation, tax efficient income streaming, pension maximisation, estate planning and in the case of Self-Managed Superannuation Funds, leveraged asset building. The advantages to using Superannuation as one of the main financial vehicles are too numerous to mention suffice to say that Australian legislation has given favourable treatment for Superannuation money in many different ways. The type of strategy best suited to any individual or couple will largely depend on the clients’ age and circumstances.

Most Australians would never dream of driving an uninsured car or not insuring their home and contents yet many of these same people are living an uninsured life and earning an uninsured income! In our view appropriate personal insurance must be given a higher priority ranking above investing, without appropriate cover the entire financial plan is put at risk of collapse. In an unfortunate serious event such as death, disability or a traumatic illness, being uninsured can cause an enormous amount of undue stress, financial pressure and heartache for family members and often this will lead to serious financial set-backs including loss of the family home and other hard earned assets. Don’t take our word for it, ask someone who has had to make a claim how important it is!

Aside from Superannuation investments, there are often valid reasons to create wealth through direct investment assets. Many clients tell us they like the flexibility and lifestyle benefits of holding some of their wealth building assets directly. There are many important factors when considering investing such as risk tolerance, available asset classes, growth and/or income characteristics, direct vs managed structures, tax implications, potential debt structures, etc. In our view there is a lot of wisdom in using a common sense approach to investing and anything that seems too good to be true probably carries additional risk or could even be an outright scam. Most of the wealth in our society is held in a few traditional asset classes as they have proven over long periods of history to be reliable and enduring.

While tax savings should not be the sole focus of a financial strategy it is certainly a welcome benefit where possible. Through more efficient structuring many clients will save multiple thousands of dollars per annum in tax. If the clients’ have debt the tax savings are paid off the debt to accelerate the debt reduction. If the clients are retired or transitioning to retirement and do not have debt, the tax savings can be used to increase Superannuation or other assets, or simply provide a better lifestyle!

Approximately 50% of the people we see do not have a will in place.

Many of these people have a mortgage and children. Estate planning can also require a more sophisticated legal structure depending on the client's circumstances and needs.