Client profiles

Busy professional family

High income earners with large personal tax burdens, long working hours with debt. Cash flow rich but asset poor. Long-term investment planning not front of mind.

Attributes

  • A lawyer, architect, accountant, medical specialist or other professional
  • May have established their own practice after a long, successful career
  • Are developing their stake in the business
  • Have enjoyed financial success but are spending it as quickly as it is being earned
  • Usually open minded, approachable and appreciates good advice
  • Paying off mortgage, loans, credit cards, cars, school fees etc
  • May be juggling income and expenses due to one spouse being off work raising children
  • Want to provide financial security for their family
  • Want a plan and a direction to work towards

Options

  • Tax management & structuring
  • Build systems to allocate surplus cash
  • Protect themselves, their business and their family
  • Channel cash flow to income- and wealth-creating assets
  • Build systems to allocate surplus cash and manage investment assets
  • Optimise debt structuring to pay off loans quicker
  • Consolidate Super and investment plan and invest appropriately
  • Invest for their children in a tax-effective way

Case Study

A senior marketing executive became a client of Plenary Wealth when he stopped and considered the need for assistance with his financial affairs. It is typical of individuals in this position to struggle to find the time to review their personal finances. Often a large salary drives a comfortable lifestyle but there is often little if anything left over for wealth creation or retirement planning.

Our major concern was the financial security of this family if anything happened to the bread winner.

Plenary Wealth’s involvement

Plenary Wealth was able to assist by engaging with our client and addressing his budget, cash flow and core objectives.

After a rigorous review process we put in place life insurances, income protection insurances and protection against trauma events such as heart attacks and cancer.

By efficiently managing our client’s personal budget position we were able to free up the required cash flow to fund the acquisition of a diversified investment portfolio. We also worked with him to create a self-managed super fund (SMSF) to free up areas of investment activity not available in the retail or industry fund space. Given his circumstances, it was appropriate to discuss the purchase of a residential investment property inside of super. We were able to achieve this using borrowings from a bank in much the same way as it would be done outside of super.

Outcome

This advice and structure has provided our client with a much broader asset base without requiring significant use of personal cash flow – as well as vital peace of mind for him and his family.


Business owners

Long-term business operators with much of the family wealth tied up in the business. Often time poor and have not built up wealth outside of the business. Have not planned for succession.

Attributes

  • Highly leveraged or substantial wealth tied up in the business
  • Enjoy a successful and stable career as a business owner
  • Work hard and want to succeed – may be viewed as ‘being’ the business
  • May have concerns about who may take over the business when they exit
  • Worried about how the business would run if they fall ill or pass away
  • May want a sounding board to help establish a self-sufficient business
  • Want to have a better work/life balance

Options

  • Tax and cash flow management
  • Guidance on structures and advice
  • Simplify administration
  • Investment advice and diversification
  • Succession and estate planning

Case Study

Our clients are a multi-generational family that have successfully run their retail business for 20 years. The business was originally started by the family patriarch who is now retired although maintains some interest in the business. His two daughters and their husbands are now involved in the day-to-day running of the business. Three branches of the family rely on the business for income.

The relationship between the three branches is good but there are competing income issues, different levels of business skills and differing ideas on how the business should grow. No family governance structure was in place which meant that there was no framework for resolving conflict or agreeing on important business decisions. The result was stagnation within the business and one particularly disgruntled family member who felt he did all of the work for an unjustly distributed reward.

Plenary Wealth’s involvement

Plenary Wealth advisers were able to put in place a governance structure that enabled dialogue to take place within the family with agreed rules for conflict resolution.

We also worked with the family to create a cohesive investment plan which gave confidence to each family group around their long-term financial requirements. This included an administrative service for the primary operator and his family which enabled him to create a better lifestyle balance and spend more time with his young children.

Outcome

The family were able to work through the key issues and the business was once again able to function efficiently and move forward. This resulted in the key person feeling more valued which in turn drove the profits of the business and the entire family gained.


Couples looking ahead to retirement

Looking to retire in the next few years, trying to work out if they have sufficient assets to retire on, wanting assistance to manage and consolidate their finances and also help their children financially if they can.

Attributes

  • Empty nesters with adult children, maybe considering a sea change
  • Considering winding back, might have started working part time
  • Concerned about having to cut back in retirement
  • Wondering if they have enough to retire on or need to work longer
  • Are over 50 years of age and are wanting to enjoy life but may not have managed finances
  • Want to provide a head start for their children

Options

  • Channel cashflow to income and wealth creating assets
  • Build systems to allocate surplus cash and manage investment assets
  • Optimise debt structuring to pay it off quicker
  • Consolidate super and investment plan and invest appropriately
  • Invest for their children in a tax-effective way.

Case Study

A couple in their mid-50s were recently referred to Plenary Wealth and, having no real experience with financial advice, they thought “Why are we here? It’s a waste of your time and ours.” However, shortly after our first meeting, we received the following email: “Truthfully from our point of view, after 45 minutes we went away very impressed and confident, wishing we had stumbled across you 10 years earlier. We were especially impressed by the way you seemed to be realistic and on the same page about our needs and requirements.”

This couple faced some very hard issues regarding the care of an elderly father and it was only through expert guidance that Plenary Wealth was able to provide the family with some clarity in their lives. Through some simple changes to their preconceived ideas, our advice was able to save them tens of thousands of dollars in stamp duty.

Our simple, straightforward approach worked wonders with these clients as we made the whole process entirely about them. Our philosophy is that money isn't important in itself (as we can't take it with us), it's importance is in what it allows you to do.   

This really hit home with both of them.

Plenary Wealth’s involvement

We planned their retirement, advised their father on aged care, managed their superannuation and investments, saved tax and reviewed their estate planning and insurance, but these issues weren’t what was really important to them and it’s not what stands Plenary Wealth apart. Our ability to listen, absorb, sympathise and only then provide advice is really what allows our advice to connect with our clients.

Outcome

They loved that we put them in a position to make informed decisions and then fully executed their decisions. Now they feel confident that Plenary Wealth will be there to help them through every major decision (financial or otherwise) between now and when their kids inherit their significant estate.