Do you want to be part of the exclusive 17% club ?

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Do you want to be part of the exclusive 17% clu?

Approx 83% of Australians over the age of 60 are on some form of age pension, this means only 17% have accumulated enough wealth over their lifetime to be self funded.

Whether you are building your nest egg via property, shares or through your Business, planning is critical. There is an old saying “measure twice, cut once”. What this

actually means in simple terms is that the more time you invest

in planning, the fewer problems you’re likely to have with a higher likelihood of a successful outcome..

Think of it this way: if you were going to build a house, you wouldn’t

simply buy a block of land and ask the builder to start laying bricks.

You would first engage an architect and sit down to put your vision

onto paper to create the house you have dreamed of.  The same applies to your investing and business, so you must start with the end result in mind.

It is simply impossible to work towards a profitable future if

you don’t know where you’re going, and the fact is, the more time

you spend on planning, the less time you spend on doing.

As we were going through the process of creating a property portfolio and building a

Business we decided that we needed to sit down and work out exactly what we wanted to achieve. After all, let’s face it, how can you possibly know what you want to build

if you don’t have a vision and plans to build it?

Firstly, we had to work out what we (individually) wanted

out of the business and our investments. We sat down and wrote a list of the things that

we each hoped to personally achieve with the business and our investment  portfolio  and we were surprised to discover that our answers were very similar:

1. Generate a passive income stream well into our retirement.

2. Restore balance in our lives.

3. Choice… the ability to choose whether we work or not, without our income stopping when we stop working.

4. To help others through our success

Do you have a roadmap for the future of your business or investments? In his

Book The 7 Habits Of Highly Effective People, Dr Stephen R Covey

says that “you don’t plan to fail, you simply fail to plan”.

Planning helps us to focus on the ’important, but not urgent’

things that we need to attend to. It helps to anticipate

and prepare for change. Think of your plan as if it’s your blueprint

for change in every aspect of your business and investing life.

One of our goals was to create a business that we, as the owners, did

not have to work in for 100+ hours each week, as we were doing at

the time. So we started delegating work to the team. This gave us

more time to work on our business.

Next, we identified the key things that we needed to do in

order to achieve our goals and this became our business plan, which

we like to call our ‘action plan’.

This document helped us to stay focused on the critical stages

of transformation in our business, and ensured that our key activities

were identified and implemented in a logical and practical way.

Your Business and financial plan will help you do three things:

1. It will clarify your vision and goals regarding what you

want your business and investment portfolio to look like in the future.

2. It will identify where your business and investment portfolio is currently placed.

3. It will determine what work you need to do to close the

gap.

It is point number three – knowing what work you need to

do to close the gap – that forms the basis of your action plan .

.

It’s important to remember that you may come up with

Hundreds of ideas and strategies regarding things that need to be

done, but they can’t all be implemented at the same time. In fact,

this is one of the reasons why many businesses and investors fail to transform

themselves, because there are just too many changes and decisions to make and

people become overwhelmed and do nothing – or they try

to do everything at once.

I would recommend that you consult an expert to assist you with your planning process. I am more than happy to discuss options for creating your own personal business plan, drop me a line on davidn@chan-naylor.com.au

 

David Naylor

Non-Executive Director, Chan & Naylor

Disclaimer: This information has been prepared as a general guideline, and is not

intended to be an exhaustive or a complete analysis of the topics in question or

issues raised in this article. There are many particular legal, taxation and accounting

matters which have not been dealt with in this article and readers are urged to

discuss any aspect of the operation of any of these matters discussed herein with

their professional advisers. In particular asset protection, estate planning and

superannuation are potentially a very litigious areas of law and you will need specific

advice before you take any actions if you want your wishes complied with. Before

taking any action or implementing any strategy you should seek professional advice

from your lawyer, accountant and or financial planner who will take into account your

specific circumstances and objectives.

When your circumstances change it affects your tax and asset protection position.

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