As human’s, we love structure, and we love plans! We like to know where we are in life, where we are going and how long it will take to get there. It’s what has guided you through primary, secondary and tertiary education to arrive at your profession. You knew that you needed to achieve certain academic standards to pass exams, you needed certain physical and mental skills to be able to obtain your qualifications and there was the university structure in place to make sure that it gave you constant feedback via exam results to keep you on track to obtain that pass mark. It also provided feedback for those that wanted to excel in their studies and let them know when they needed to study harder to get that overall result. Think back over the people who helped you achieve those results, the people that gave you honest feedback (sometimes the kind of feedback that you didn’t want to hear) that drove you to work harder and smarter.
Then you graduated…
Then life becomes a bit of a blur. From finding a job, to finding a job that really suits who you are as a practitioner, to working through deciding who may want to spend your life with, if practice ownership is “right” for you, where should you live, how much should you spend on your home, when should you start investing, where and what do you invest in, do want to have kids, if so, how many??? No wonder we all put insurance and financial planning off “for another day”…
It can seem like trying to eat an elephant. But, like eating an elephant, I can assure you of two things
- It won’t be done in one bite! Take small bite-sized pieces and just keep working through it.
- If you don’t start, you will never finish! Often, the hardest step to take is the first one.
We cant help with questions like “who should I live the rest of my life with?”, or “how many kids should we have?” but we can definitely assist with the insurance and financial planning side of things!
Like eating an elephant, we break it down into smaller pieces that we tackle can be eaten one bite at a time. There is a process that we use when helping our clients with advice and it looks just like a pyramid:
- The Base: You can’t build a pyramid without a solid base. In our eyes, this means that the proper insurances and Estate Planning are in place. What is the use of starting a wealth creation strategy that is dependant upon you working for the next 15-20 years, if due to a disability, your income stops? Why build wealth if, in the event, something was to happen to you, that wealth doesn’t go to the people you want it to go to? We believe that the base accounts for around 50% of the overall importance of the pyramid!
- The Middle: This is where we start investing in high quality blue-chip Australian and International shares (direct, managed funds, investment bonds ETF’s etc) and property in both your name and via your superannuation. We avoid speculative investments completely! We cant plan on a finish date if there is a reasonable chance that you may be over or (more likely!) under the planned return, so we avoid those “get rich quick” schemes which really should be rephrased as “lose money quick” schemes. Our investment philosophy is based around research conducted over the last 100 years. This portion makes up around 40% of the pyramid.
- The Apex: This is the bit where, if a client wants to invest in something that is outside of our risk tolerance as advisers (direct property development, Crypto, etc), we can safely say, “go for it!” knowing that, as it only makes up 10% of the overall pyramid, if it fails, it won’t affect our result to any great degree. If it succeeds, then it is a bonus to be celebrated!