The Wealthful Way is to base all advice on helping you live a life fulfilled with what you value, whatever that may be.
All clients over many months and years are continually taken through seven keys steps to make sure everything is in the right order to get the best result for you. These steps are repeated time and time again to ensure that you keep reviewing, designing and taking action towards the life you value.
We know there is no perfect plan, but no one would say that a well thought out and wise plan won't help.
Without a plan, your dreams will stay dreams.
Are we a match?
Before we work together, we need to make sure we are the right match. The most important part for you initially is to understand where I can and cannot add value in your life. Therefore we do not rush getting to know one another and it will take us usually three meetings before we agree to work together. I know this is not a small decision for you and there's 20,000 advisers for you to choose from, so I'd rather we take our time and start on the very same page.
First Free Introduction Phone Call
The first step for all new clients is to have a free introduction call. This short call will explore where you are today, where you want to go and importantly the challenges you are currently dealing with. On this call, I will explain what value there could be in us formally meeting
and how I believe I may be able help
Second Exploration Meeting
The aim of the exploration meeting is to have a great discussion about what truly matters to you. Wealth Coaching is never about me, it is about you. I will give you an overview on how I can help but I will not give you personal advice. Most clients get significant clarity at this meeting on where they need to be heading and regardless this meeting helps my clients signifcantly. It will take around 90 minutes and will preferably be face-to-face in my office in Sydney or Melbourne. Video Conference is also available if logistics is making it difficult to meet
Third Terms of Engagement
By this stage we will be clear on what value there is in us working together, not just now but longer term. To be clear, I only work with clients that I see there to be signifcant longer term value. If so I present to you my thoughts in a terms of engagement document that will cover all you need to know about what we are hoping to achieve. At this point it is entirely your choice if you want to work with me. If you do, you will be required to pay an initial commitment fee and I will be very excited to be working with you to build a fulfilled life with what you value.
So the first step is to
STEP 1: Build your Financial Foundations
If we have made it to Step 1, we are working together and you have paid an initial commitment fee.
Before we build your financial plan, it is important to take care of financial foundations first. These quick wins save you money immediately on your mortgage, protect your family and ensure your banking is running right. We always assess the easy win first and deal with them efficiently before going down more formal financial planning.
One - Your Home Loans & Borrowing Capacity
The first thing we always do is make sure your home loan is on a very sharp rate. A simple process can save you money immediately and at the same time we assess your borrowing capacity. It's important for all clients to know what the maximum you can borrow for future investing before we go down a financial planning route.
Two - Your Insurances
The second stop is your personal insurances. Whether you need a little or a lot, it's important that this is setup sooner rather than later. This review will make sure you setup the right amount of cover the right way for the right price.
Three - Your Estate Plan
The vast majority of us do not have our estate plan in order. If anything should go wrong, it's too late to set these up. We go through a simple process to make sure you have your wills, power of attorneys and estate issues all setup before something happens.
Four - Your Cashflow
Before we begin planning, we need to understand your cashflow in detail. We spend a meeting or two, setting up and going through your day-to-day banking. What you are spending, how you are spending it and what is left over. If there's a better way, we will help you put it in place
STEP 2: Build your plan - What Matters
Step 3 is where we begin to build on the reasons you are working with me and why it is important that you do.
This can take a few months and meetings to get very clear on what matters to you, the challenges we need to deal with and what lies ahead. Taking our time here will make sure we get things right from the very start. There's no point rushing the planning phase unless you are very clear on what matters.
One - Design your life around what matters
If you looked back on your life in the future and wanted to be proud of what you achieved - describe your life to me. What would you wish you did more of and spend less time doing. We will go through the big questions and understand what truly matters to you and your family
Two - What transitions do we need to plan for
It's important to plan for the big events- marriage, kids, upgrading the home, retirement, starting a business, childrens education. What they are will vary but they need to be very clear on the plan
Three - What are the financial gaps we need to bridge
Once we know what's important and what the transitions are - it will be clear what gaps you have and what we need to plan for. Now we put a plan in place to bridge these gaps and assess how far you are from doing everything you want in life
Four - What strategies make dollars and sense
Once we get to this point, we know how close you are and we overlay all the strategies we know that can improve your situation. Stress testing and scenario analysis to ensure you are taking the right path
Five - What are the tradeoffs? Save or Spend
We all make decisions everyday - Save or Spend. This powerful discussion challenges you on how you spend and whether you should save or spend more. Lets be clear, the goal is not to save as much as you can, it's to as much as you need to
Six - Five Year Plan - Change takes time
Most plans have a thirty year time line that never come true. My experience has shown that this planning is pointless and nothing in life happens over night. The approach I found that works best to focus on the next five years. If you plan much longer than that, the things you never thought would happen, have just happened.
Seven - The Backup Plan - If things go wrong
We would all love to believe that it will be a smooth ride but in reality we know some tings will go wrong at some point. If they do, you need to have a plan and depending on what it is know your family and assets are protected sufficiently. What could go wrong and what would you do - a very important discussion
STEP 3: Invest Wisely
Step 4 is where we finally begin to look to invest and do so wisely. Most people go to a financial adviser for investment advice and most of the time the advice can be conflicted. My advice is that you should only invest if you have done Step 1 & 2. Only at this point have you looked at all the strategies, weighed up many different options and decided to either invest or not.
One - What is your strategy
Before you invest in anything at any stage, you really need to understand why you are investing and have a very clearly definted strategy. This may be you want to create $500,000 of additional wealth in 20 years time by saving $1,000 a month. It could be to pay off your debt in 10 years time. You need to know WHY
Two - What is the right structure
You have many options when investing and it's very important that you choose the right structure to match the strategy. It may be better to invest personally, in Mr or Mrs, through a trust structure such as a family trust or superannuation. Be careful as this cannot be unwound cheaply
Three - What is the right investment mix
There are many different types of investments - Shares, Residential Property, Commercial Property, Bonds, Commodities, Infrastucture, Private Equity. I am a big believer in most investments for different people at different times in different ways. The key challenge is matching different investments to your life plan
Four - What is too much and too little risk
As an adviser, I will stress test your portfolio for what may be too much risk and also too little risj. In order to achieve your longer term goals, you will likely need to invest in some form. Taking either too much risk or too little risk is a not good outcome, so we will find out what is the right amount of risk for you. Remember the right risk amount for you.
Five - How do we ensure it is a succcess
In order to be a successful investor, you need to follow rules. Rules stop you acting emotionally when you need to be acting rationally. I will run you through many mistakes you can make and how to avoid them by following a strict number of rules. This is very important and all my clients must follow these in order to be succesful. I will ask you to sign a letter to yourself to remind you to not break the rules
Six - How do we reduce your risk
As you get closer to bridging the gaps you need to plan for and setting yourself up financially, it is advisable to reduce risk. Why not sell assets and reduce your risk in the good times. Personally I believe in making sure you build the life fulfilled with what you value and more money is not the answer.
STEP 4: Take action & stay focused
Once we get to step 4, you have made significant progress. We know where you want to go, what we need to do and how fast we need to get there. But this is where the hard work begins and it is now down to taking action. Action not just once, but consistently staying focused on the task at hand.
This is not to be feared however. My job is to simplify it to one thing at a time and allow you to focus on what matters to you - your life, family and friends, not your money.
One - 90 Days - Take Action, Stay Focused
We will meet every 90 days by Video Conferencing for 30 mins. This is a very important call to keep both you and I accountable to what we need to do. We also agree what we need to do in the next 90 days. Sometimes it is very simple but at other times we are working together very closely almost daily
Two - Keep Automating Life
I do not believe in making life more difficult than it needs to be. We should always be thinking is there a way I can simplify my life and make it more efficient. We will discuss this every 90 days and see if there are ways to make things better
Three - Always Growing - Purpose, Knowledge, Health, Happiness
While I talk about money everyday, It's not what matters. I want to help you keep growing. Your knowledge, your purpose, your health, your happiness. Whatever it is you are working on, lets achieve things together
Four - Flight Check - Every 360 Days, 360 Degrees
There's no point just continuing on without making sure you are on the right way. Every year we will sit down, idaelly face-to-face to make sure your plan, is still the plan.
STEP 5: Play Smarter, Not Harder
The world is always changing and 2017 is totally different to 2011, 2006, 2001. We will help you stay across everything as it changes and my role is to stay pro-active for you to always be working smarter not harder.
One - Legislation Changed - What should we do
Every May, the government comes up with wonderful ideas on how to tax you more and make it more difficult to plan for your future. We will make sure that whatever happens, what you are doing is the best thing for you
Two - Investment Management - Avoid making mistakes
Investment management is surprisingly simple if you know what you are doing. The key however is not making mistakes but the hard part is knowing what they are. My job is to stop you making mistakes and in turn make much better investment decisions. We are always across your options when investing and from time-to-time we will suggest new ways to better protect or grow your wealth
Three - Opportunitiy Optimisation - More we can do
Life is always changing and so are your opportunities. If either of us come up with ways to improve what you are doing we will help you make the changes you need to make happen.
Four - Project Manager - Staying organised
At certain points in time, lots will be happening. We will need to be involved with all your professional partners to ensure we make sure everything comes together. This might be as simple as getting your tax returns done or helping you invest in to property.
Step 6: Life changed, adjust the plan
Things happen and you will need help. It might just be a small question or it could be something dramatically changing in your world. At this point in time, you need advice and I am always just a phone call away to help you through all your life decisions.
One - Curveball Meeting - Oh no, what do i do?
When life changes, you need to have someone to help. A trusted third party can help you think through your life decisions. Finances play a role in all big life decisions. I love these meetings, so whenever you want to talk about a big decision, please booking a meeting
Two - Phone-A-Friend - Always there when you need
Sometimes you have something you need help on and want a second opinion. My phone is always on for my Wealth Coaching clients. Whatever it is about, don't hesitate and give me a call. If it's not something I can not help you with, my network will
Three - Email Q&A - Any question, any time
Sometimes you have questions that you want answered. If there's no rush but you would like to get my thougths on something. Email any question through and I will do my best to answer it straight away for you
Four - Coach-on-Demand - I want to learn more
My service is built on education. I love to coach my clients and you always have the option to have a coaching session. It could be about anything, so whatever it is, lets have a coaching session