Studies indicate the associated health impacts of ignoring Financial Advice

Retirement should not be looked at from a pessimistic perspective; rather than simply signifying the end of your working life, it is the start of a new life. Financial advice is key to planning your future. The Canadian Financial Planning Standards Council (CFPSC) recently completed a wide ranging, longitudinal study which sought to understand the real value of financial advice. The results proved that the positive affects of advice were even greater than initially expected.

The surprise came in measuring well being; it was found that a comprehensive financial plan lead to higher satisfaction. The CFPSC measured emotional well being, financial well being, overall contentment and achievement of life objectives and in each case found that people with a comprehensive plan measured better. A client of a Financial Planner is more confident in their financial situation and the direction of their retirement planning. They also have a greater propensity to save.

This matches the findings of a Finnish survey which explored the impacts of stress on health. The survey not only found that stress can impact health, but also that financial stress had the greatest impact on a person’s health of any type of stress.

These findings align with our experience as Financial Planners. Our clients are more confident in their future and have the knowledge and tools at their disposal to make the decisions that are right for them after having worked with us. This results in a greater ability to deal with the challenges of retirement and living for, what could be, 30 years without an income like many of us will need to.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

A secure financial future: Do you wish to retire comfortably?

Do you stress about money, about not having enough in retirement? Do you worry that you won’t be able to enjoy your retirement, and the impact that has on your family? Many of us spend time stressing about our financial future, especially when it comes to considering our retirement and how long our financial resources may last.

However, that stress could be costing you. Stressing over your financial position may well be taking away the most important thing about your retirement, your health. A recent study has reinforced the fact that stress impacts your health in a variety of ways. The study, conducted by Finnish researchers (Source: http://www.rodalewellness.com/health/stress-health-problems), confirms that the health outcomes for those who are stressed, and in particular those who are stressed by their financial situation, are worse than for those who report lower levels and instances of stress.

Financial planning helps. One of the key values of financial planning advice is that it aides in eliminating stress. It takes away the unknowns that currently exist in your financial life. One of the rewarding elements of providing financial advice is seeing the stress relief from the client’s perspective.

The Canadian Financial Planning Standards Council commissioned a longitudinal study of 15,000 people and the findings highlighted that people who engage a Certified Financial Planner experienced significantly higher rates of financial and emotional well-being.

Reduce your stress levels; If retirement is something that is concerning you, engaging with our team today could be the best thing you do for your financial future and your health.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No.

couple on the beach

Financial Planning Eliminates Stress

Oxford Dictionary defines stress as ‘a state of mental or emotional strain or tension resulting from adverse or demanding circumstances.’  It has been reported upon countless occasions that finances are the number one cause of stress on individuals.  In the U.S., survey results showed that 76% cited finances as one of their major concerns (source: https://www.apa.org/helpcenter/economic-stress.aspx).

In order to eliminate these stresses, there are many ways in which you can assess, understand and take control of your financial situation.  Financial planning provides guidance on the best actions you can implement immediately to better impact your financial situation.  

It is important to have a clear understanding of what is happening economically, but to not allow yourself to get caught up in it and panic unnecessarily.  Being aware of what is going on in the world of finance will assist you to make smart choices with your money and help to shape the way in which you plan your financial future.  

Recognise the ways in which you deal with financial stresses; the things that relieve your stresses can actually cost you, whether your relief is in the form of cigarettes, alcohol, emotional eating or even gambling.  

We offer comprehensive Financial Planning services.  Speak to one of our Advisors or contact us today for a stress-free future.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

A tractor is loading newly harvested sugar cane onto a cane train in North Queensland, Australia.

Shane Webcke: A Message we all need to Remember

Former Brisbane Broncos, Queensland and Australian Rugby League Star, Shane Webcke, has an important message for us all: “I lost my dad in a workplace incident, so I know first-hand that family and loved ones are the most important reason for work safety.”  Having been affected by something that we should all guard against, be aware of and unfortunately be prepared for, he has since gone on to become an ambassador for Workplace Safety.

Workplace accidents take the lives of hardworking sons, daughters, mothers and fathers all-too-often.  In addition to the heartbreak that comes from such a tragedy, the havoc of losing the main income from the household adds unnecessary additional stress.

Shane Webcke now works with Workcover QLD on campaigns to help raise awareness of Workplace safety. To see more on the campaign, visit http://bit.ly/1JKVL3s.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

Unplanned Succession: the Precarious Position

You may just be getting started or perhaps you are at the top of your game.  You are not intending to leave or hand over your business for years to come.  How could this possibly be of relevance to you?  If the success of your business is not dependant upon your contributions then, by all means, stop reading.  However, if you are responsible for adding any value to your business, please ask yourself; If I left my business today how long would it last if I couldn’t come back?  Is there someone else in the business I couldn’t survive without?  My family relies on the business income.  How long could we survive without my pay cheque?  What would it cost to replace me?  Can I be replaced?

If a business founder is not sufficiently prepared for their personal exit through a funded, planned succession strategy, then such an event is likely to leave the business in a precarious position.  Without putting a concrete strategy into place for succession, there are still many ways you can prepare yourself for the unexpected.

Overall, having the right funding arrangements in place to protect against unplanned exits of essential staff and owners is key to surviving unexpected events.  To achieve a smooth succession that results in a strong chance of the business flourishing across multiple generations, it requires some serious honesty and commitment from all parties involved to deliver a successful transition. Most importantly though, it requires forward planning and a clear set of actions to create the potential for success.

Communication is integral to the list of key attributes required in succession planning.  Both you and the successor need to be able to communicate honestly, directly and respectfully to one another to ensure everyone is clear on the plan of action.  Common goals should be shared by those involved.  It is important that the goals are synonymous with achieving financial objectives that ensure both generations are financially rewarded for their efforts.  In addition, attention should be given to ensuring that the leaving generation is sufficiently reimbursed for their life’s work and the outcomes they have achieved.

Here are Progressive Wealth Solution’s tips for preparation:

  • Start Early; the transition requires a number of objectives to be achieved.  It doesn’t matter whether the transition happens in ten months or ten years, the sooner you start preparing, the greater the chance of success.  Starting early allows time to select and groom the right successor and to skill that person to lead the organisation into the new generation and beyond.
  • Prepare an Action Plan and Timeline; Like any change project, a succession plan should be defined in terms of the objectives that need to be met for success.  Each key objective and the criteria for that objective should be discussed and agreed by the organisation and its advisors.  All elements of the succession should be discussed and defined well ahead of the actual events.   Clear objectives and deadlines assist in overall clarity throughout the process.
  • Close attention should be paid to three key elements; the successor, the financials and the strategy.  Everything from the skills and attributes of the successor to the training and development required to prepare that person should be defined.  Whoever is chosen as the  successor should be provided all the support and education required to be prepared for the role ahead.  Being clear on the financial rewards available and the timing of those rewards is an important start.  Most importantly the expectations of all involved and the KPI’s that need to be met to deliver on the financial objectives should be clearly defined.  The strategy defines how the business is going to evolve and adapt to improve its potential for success through the generations.  The preparation and planning for that needs to be agreed to ensure the organisation continues to pull in the same direction throughout and post the transition.

In addition to the above issues and concepts to manage, we recommend that you consider the following components as part of your succession strategy:

  • Board of Advice; If your business doesn’t currently have a board of advice, we suggest implementing one.  No matter what your business stage the board of advice brings external accountability to your management team and ensures you keep focused on priorities.  In terms of the business succession process, outside experience can help maintain adherence to the succession plans and assist in overcoming any challenges that arise.
  • External Mediation; Involving your accountant, financial advisor or family lawyer in the process is a valuable decision. It helps if these individuals are respected by both sides, however, often they will be seen as more attached to the founding generation. As a result it is often better to bring in a completely independent mediator to bring the generations together on common ground.

Succession planning is challenging but, professionally managed can create a legacy that aligns with the dreams and goals of the original business owner, whilst also passing on the business’ potential and wealth to be developed by the next generation.  If you are seeking any assistance or information with your succession planning, contact us at Progressive Wealth Solutions.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

Prepare for Internal Succession to Secure your Future

One of the major challenges for any business is the transition between generations.  As the business owner comes to the end of their active career, choosing and integrating a successor is integral to the legacy of the business.  There are a number of key issues associated with succession in small business that make it difficult to hand over.  With emotion, family, money and planning all coming into play, it is no wonder so many struggle with this aspect of business ownership.

The attachment of a business owner to their life’s work makes objective decision making difficult.  Having spent years devoting time, energy and resources to a business, results in significant sentiment for the business owner.  Passing the baton does not represent the end of the race; rather it should be seen as having put in the hard work for the success of the next generation and generations to come.

Adult Son Helping Father With Laptop

Family is often at the forefront of an owner’s mind when business changes are afoot, particularly in smaller companies.  It is not uncommon to consider, how long your family could survive without your income and what other implications handing over the business might impede on them.  Naturally, these questions create an additional layer of complexity.  However, they are important questions that need to be addressed.

It goes without saying that money is at the forefront of almost all decisions made within a business.  After-all, a business is for generating income.  When planning, it is important to realise what is at stake and to minimise risk.  How much does each party have to gain and how much does each party have to lose?

To ensure that succession in your business is most successful, the nominated successor needs to be clear on and prepared for what lies ahead.  This is rarely the case and can result in turmoil without sufficient planning.  Talk to us to start planning for a secure future today.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

Getting the best value for your Business when you sell:

Selling your business is a large undertaking and not be approached without sufficient preparation.  In order to ensure you are getting the best value, there are several things you need to act on.  Ask yourself key questions about your business; Is your business worth as much as it could be?  Have you done everything you can to set it up for an easy handover to the new owners?  Is your profitability the same or better than that of your competitors?

It is integral during this process to ensure key things such as the capabilities of your staff, the validity of the contracts you have in place, how current the technologies you use are and how reliable your financial records and management are.  You need to onsell legally and cleverly.  Your business is at its most valuable when it is at the top of it’s game.  In order to get the worth of your business, you will need to be able to prove it.

Contact us to begin reviewing your options.  Our team has a wealth of experience in this area and can provide the most valuable advice for you.
Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

Sugar cane harvest in tropical Queensland, Australia

Succession Planning; Prepare for the unexpected

Succession Planning is a process used in business to identify people internally who are able to fill key leadership positions within your company when they become available.  Review what you do every week in your business.  Which of those tasks could you confidently delegate to  someone else in your business tomorrow?  Are they important tasks?  Could they be externally contracted at an affordable price?  If not, they may become the downfall of your business.  Will your business survive without the income you generate?  Moreover, without your business, how long can you and your family survive?

As unwelcome as they may be and as often as we may think ‘this will never happen to me,’ there is always the probability of an unplanned emergency putting us into a sticky situation.  It could be that you slip and break a bone; you could contract an illness or in the worst case scenario, even death may be on the cards.  There is nothing wrong with being optimistic but, being prepared will provide a world of relief in any of those instances.

In the event of an unplanned exit or period out of the business due to illness or injury, you and your family need the right support to ensure the assets are retained.  We believe in the results that are achieved through properly planning for unexpected situations and know that at a time of need, not having to worry about what could happen is invaluable.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466
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Progressive Wealth Solutions: Trusted Advisors

Advice on your financial life is critical to the goals you set out.  Advisors, financial planners and general insurance specialists are there to help you make important decisions that can have a critical impact on your future.  Unfortunately, in this industry, it is common for people in these positions to steer your decisions in a direction that benefits them.  These benefits come in the way of products in exchange for the decisions they guide you into making.  Naturally such transactions are not in the best interests of the client and can often result in conflict.

When visiting a doctor, you wouldn’t expect them to receive a commission from the pharmaceutical company.  Surely, you would be horrified if they did.  However, that is exactly what happens at many financial advice firms.  The financial services industry is built on many conflicts like this.  For you, this means you may just be getting advice that is not in your best interests.

Many clients have been convinced that this is normal and that it doesn’t cost them any more.  The reality is that insurance products have higher premiums to cover the commission; loan products have inbuilt fees and extra interest to cover the payments to the broker and your superannuation fund has higher fees to pay.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466

 

Preparing – is your Estate in order?  Disorder can cost you in the end:

Estate Planning allows you to nominate what is to come of your possessions once you are gone.  This is not to say it is simply about who inherits the China tea set or who claims your DVD collection.  It is to protect your family and loved ones, to alleviate them from the burdens and stresses of managing your Estate and any debts associated in an already emotionally taxing situation.

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You might be young, healthy, childless and in a steady relationship.  Or perhaps, you are single, debt-free and fitter than Usain Bolt.  Why, you may be thinking, would you need a Will?  A Will is a legal document that only comes into effect after you are gone.  Virtually everyone postpones writing their Will.  It could be that it is too much work or it could be that it makes the concept of death too tangible to deal with.  Your Will is something you might not expect to require for many years to come.  However, the reality that many people are unaware of, is that if you do not have a Will in place, when you die, your Estate will be distributed by the government using their own set formula.  If you think ahead and are prepared for the worst case scenario, it is up to you how your Estate is split between family, friends and charities and who is to step in as a guardian for your children (should you have any).  Even after you are gone, this legal and binding document appoints a suitable executor and divides your assets just as you have outlined.

There are many points to consider when preparing a Will; Your Will must be clear and current.  It must appoint an executor who will look after your Estate.  In this role, your chosen executor must collect all of your assets and pay any debts that you have owing, as well as distribute your Estate as instructed by you.  Consider; Is your family situation complex?  Are you planning to leave a gift for your community or a charity of your choice?  Is it possible that tax may diminish the value of your Estate?  Do you have an enduring power of Attorney?  These are all extremely important points to address and will assist in your absence to ensure your affairs are in order.

As well as this, it is crucial to review your insurances on a regular basis, both personal and business.  In doing so, you will be able to confirm that you have the best insurances possible.  You don’t want to miss out because you have ‘assumed’ certain scenarios are covered, nor do you want to be paying premiums for situations not applicable to you.

Be prepared for the inevitable and give your family and loved ones the peace of mind.  We have plenty of experience in this area.  Talk to us today about how we can make this easy for you.

If you’d like to chat about your specific circumstances, please contact us, or give the team a call on 07 4783 5151.
Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 466