Professionals
Whilst your cashflows are strong, you may be sensing that you aren’t making the most of your fortunate earning position. We can help you build a disciplined long-term plan, and we will work closely with you to ensure you remain on track and that your plan evolves in step with your lives and ever-changing reality.
We will also assist you in best leveraging your excess savings and future cash-flow so as to generate future passive investment income to put you in the best possible position to achieve the financial goals and objectives that are important to you.
Ben Smythe Principal Adviser
CASE STUDY
Meet David (47) and Kathy (45) who have three children. Both parents enjoy well paid jobs, the mortgage is paid off and are sitting on quite a bit of cash savings, but have noticed as their kids are getting older their expenses are increasing. David and Kathy want to comfortably afford their children’s education and activities but at the same time build their wealth. Work is stressful so they also want to continue taking regular holidays with their family.
How did Minchin Moore help you?
“They initially established an agreed set of personal and financial outcomes that we were both keen to achieve. They also completed a budget to see how we were spending our money, and to identify what excess cash-flow is available for investing. They then prepared cash-flow advice, firstly showing how we can build wealth without changing jobs, and secondly agreed a cash-flow plan going forward so we can be better prepared for any unexpected expenses, without substantially cutting back on our lifestyle.”
What else did they do?
“They reviewed our current superannuation funds and insurance policies to cut out any unnecessary costs. They made sure our superannuation was set up appropriately and aligned with the retirement lifestyle we wanted for ourselves and our family. They also updated our insurance cover so it continued to provide a suitable risk management strategy for our family.”
How did you find the experience?
“They also established an investment strategy outside of superannuation for our current cash savings and to make best use of our future excess cash flow, and provided advice around a more efficient tax structure going forward. We are extremely happy.”
Business
Owners
Your personal balance sheet can get less attention than it should, due to being third in line for your attention and energy (after business and family). Our partners well understand the competing demands on a business owner’s time. We also know from experience that the more energy and time that we can free up to allow you to focus on your business the better. That extra energy and time will help you extract the best financial return from the business, for your family, at the end of the day.
We bring everything together, acting as the centre point, coordinating all the professionals in your life and integrating the business plan with a well-structured personal financial plan – ensuring a coordinated approach that focuses not just on the business – but on what it’s all for – personal life and family. When it comes time to exit the business or release capital we will also have a plan in place to ensure the financial rewards from all the hard work of running your own business are maximised.
Farmers
The financial advice needs of farmers are different to those of city folk. Farmers need to plan to make sure their farm business will continue to support them and their family through good times and bad.
Your planning needs to consider worst case scenarios with the hope that they never happen. Changes to climate, markets, farm practices and demand for their produce need to be factored in.
The farm business plan needs to be woven into your personal financial plan. It should include a timeline for their retirement, family succession and/or eventual sale of the farm.
For long-term planning to result in successful and achievable outcomes, discussions should involve all members of your family who are part of the farm business. There is no point planning for a member of the next generation to take over the farming business and assets if they are not interested in doing so.
Making holistic plans can be daunting. Families are complicated at the best of times, but when farm succession, inheritance and unpredictable weather and commodity prices are factored in – farmers clearly face more complexity than most.
We can help you bring it all together, pointing out all the key things that ought to be considered and explain and detail the effective strategies that have worked for other farming families.
Angus Warden Partner (New England)
Charlie Perkins Partner (Central West)
CASE STUDY
Meet Mark & Sally (early 50s) are proud 3rd generation farmers from Central West NSW. They have twin boys away at boarding school.
With their mixed farming enterprise plans coming to fruition and only a few years’ of boarding school fees remaining, Mark and Sally saw a need to focus on where to direct their current surplus cash-flow. They also want to ensure they have the optimal ownership and operating entities to enable options and flexibility for the next generation should they want to carry on the family business.
How has Minchin Moore helped you?
“Firstly, they took the time to really get to know us personally and our hopes and key goals for the future. They identified possible issues or problem areas and worked closely with our solicitor and accountant to fix those areas and implement the recommended changes. Essentially they developed holistic plan tailored specifically for us.”
How detailed were they in their planning?
“They left no stone unturned. They collated our various superannuation accounts and correctly aligned them to our risk profile and plans for the future. Also, even though we thought we were uninsurable, Minchin Moore even organised accident only cover should the worst happen on the farm.”
What about the future?
“The estate management process conducted by Minchin Moore was collaborative and transparent. It left us feeling very comfortable as to future options for the whole family. Previously we were so stressed and unaware of our options.
They even provide balance sheet and cash-flow modelling to stress-test various income scenarios considering the unpredictability of the seasons. This service has just been invaluable in our decision making.”
Pre-Retirees
Preparing for retirement is a complicated task. Not just financially, but also emotionally.
There are so many questions to answer: How much will I need? When will I get there? How can I make sure everything will be structured tax effectively? How am I going to deal with not working – will I still be valued? Should I ease into retirement through part time work, or just go cold turkey?
We have helped tens of people manage this transition with confidence, safe in the knowledge that they have enough retirement capital to have the life they want after work.
Retirees
Retirement should be a happy and fulfilling stage of life, yet many retirees harbour worries through these years about their children, the state of financial markets, the implications of political change and how best to structure their legacy.
Much of this worry can be removed with a well thought out retirement plan. This plan should remove anxiety by addressing all these issues with well formulated strategies.
You list of worries can be effectively categorised into: things that you can control, which should be proactively managed, and things that you can’t. This helps reduce that sense of anxiety.
Managing portfolios and developing long range strategic plans for affluent retirees is the heartland of our practise. We have helped literally hundreds of Australians through this stage of life, allowing them to be both prosperous as well as confident about their situation and future.
CASE STUDY
Meet James (57) and Jane (58). James is a Senior Partner at one of Australia’s leading law firms. Jane (also a lawyer) does a range of consulting and pro-bono work. They have two adult children at home – One a university student and the other starting their physiotherapy career.
James, after a distinguished career, is preparing for the next stage of his life. He plans to retire from the intensity of his current role and find a new position with a slower pace and less hours.
When did you first become clients of Minchin Moore?
“About 10 years ago. We were both on high incomes and wanted to make the most of that stage of our lives. We wanted to be smart about building our wealth by gaining expert advice instead of adopting the DIY ‘guess and giggle’ approach like many people.”
What was your goal at the time?
“Obviously to secure a comfortable and possibly even early retirement. However, we also wanted to ensure our children had an inheritance that was significant enough to help them at their stage in life, whatever that might be at the time.”
How has Minchin Moore helped achieve those goals?
“In those early years they focussed on growing our wealth aggressively and the results were truly dramatic. Over recent years the focus has shifted towards moderate growth with higher levels of capital protection in order to avoid risking our hard earned cash and investments at this later stage of our careers.”
Do you consider yourselves risk takers?
“Not at all… In fact, I’d say we’re actually quite conservative. Minchin Moore provided valuable cash-flow and capital modelling of various scenarios to help us better understand how our lives might play out financially. Because of that we always felt confident and never like risk takers.”
James, you’re about to wind down your career?
“Yes, and my income will drop substantially. However, thanks to Minchin Moore we’re able to maintain our lifestyle without jeopardising our investment nest egg.”
Recently
Divorced
Around a third of Australian marriages ultimately end in a divorce. Knowing how to approach this traumatic situation can help make the process easier.
Once the emotional decision is made to end a relationship, depending upon your circumstances, a divorce can be quite a lengthy legal process.
Unless there is a binding financial agreement (BFA) (the old fashioned “pre-nup”), then the financial split is often determined through a series of negotiations. With lawyers involved, costs can skyrocket. So, an early and amicable asset split agreement is preferred.
However, working amicably with your ex-spouse can be challenging in this emotionally charged time (even if it’s through your lawyer). Simple things like thinking sensibly, with one eye on the long term – can be a challenge.
Whilst it’s important to have sound legal advice, it’s also crucial to decide what mix of assets will work best for you. Getting financial advice early in the settlement negotiations is preferred – don’t wait until it is all nearly all signed and sealed.
To successfully rebuild your financial life after a divorce, you will need to go back to basics with a budget and a comprehensive financial plan. While your relationship with your lawyer will probably end with the divorce, your relationship with your financial planner will hopefully last many years.
We will assist you by providing you with grounded counsel through the property settlement discussions and then helping you prepare a long-term financial road map to rebuild your financial life. Perhaps most importantly, we will help you think about the next chapter of your life, set goals and aspirations that will give you fulfilment and then we’ll be there with you along the journey to make those things happen.
Cathryn Gross Partner
CASE STUDY
Meet Sandra (45) who recently went through a divorce. Sandra always delegated the finances to her ex-husband and has now discovered that things aren’t as rosy as she thought. Having inherited the family home with no mortgage, and earning good money, Sandra has high disposable income. Sandra has never sought financial advice before but she wants to ensure her finances are set up correctly, and wants to be confident that she can become financially independent in the future.
How has Minchin Moore helped you?
“Minchin Moore worked closely with me to firstly understand the key financial outcomes I wanted to achieve. They reviewed my current income, expense and asset position, and provided some cash-flow scenario modelling, which allowed me to make some concrete decisions moving forward with respect to investing my excess cash-flow. They also provided expert advice around structuring my income to be more tax effective.”
What other value did Minchin Moore add?
“They established a new superannuation fund so I could better control my superannuation fund costs. They implemented a listed securities portfolio for both my superannuation and non-superannuation portfolios. They developed a superannuation contribution strategy to ensure the maximum would be contributed into superannuation in the lead up to my retirement. They also reviewed my estate planning to ensure my wealth is passed on as I want, and in the most efficient way.”
So life after divorce is not so scary?
“Not anymore! It’s actually looking better than ever thanks to Minchin Moore (laughs)”
High Net Worth Families
Family wealth can be a complex and sensitive area. We recognise the importance of maintaining family harmony as well as supporting financial affluence.
We recognise the considerable hazard your family faces due to the regular calls for your investment capital from friends, colleagues and acquaintances. In our experience, investment decisions made in response to inbound offers and ‘opportunities’ can unsettle a well-structured, long-term investment program and impair family wealth.
We address these challenges through the development of long-term plans and frameworks that embrace common values and goals across generations.
These plans will bind your family members to a shared direction and this in turn fosters intra- and inter-generational relationships, while also providing family members with cause to say “no” to the many opportunistic schemes that present themselves along the investing journey.
One of the greatest fears faced by families that have created wealth through their own endeavours is that the following generations don’t understand or value the hard work that underpinned this success and have a sense of entitlement to the lifestyle they enjoy.
We place education at the core of our advice, offering coaching to members of the current and next generation, helping the family to articulate their values and establish the framework that ensures the intended legacy of the older generation is fulfilled by the younger.
Tom Jeffries Partner
‘For Purpose’ Institutions
Directors and fiduciaries of ‘For Purpose’ institutions have a considerable duty of care when it comes to the investment and ongoing management of their organisation’s investments.
They are accountable to a wide range of stakeholders who often have disparate views about investing, and varying levels of understanding and sophistication.
Development of the most appropriate investment strategy is an outcome of a detailed understanding of each organisation’s goals and objectives, investment timeframe, income and capital requirements, risk appetite, restrictions, preferences, and sustainability considerations.
Our lead advisers in this field have over 20 years of experience in advising fiduciaries and we can help boards with education, development of tailored investment policy statements, governance frameworks to ensure that their ‘prudent person’ obligations are met, professional portfolio management, reporting, and ongoing reviews to maintain the best chance of meeting their investment objectives.
Andrew Marchant Chief Investment Officer
CASE STUDY
One particular not-for-profit institution is governed by a Board who have traditionally retained the vast majority of their investment fund in cash and term deposits.
Recently, with interests rates falling and with the organisation needing to partly fund itself from a declining stream of interest income, the Board felt it needed professional investment advice.
Why Minchin Moore?
“The Board was already aware of Minchin Moore through existing industry connections. We’d heard good reports about them and decided to approach them to seek counsel on how we could structure our investment portfolio to provide a better income, but without taking unnecessary risks.”
How did that ‘get-to-know each other’ period work?
“They had a number of meetings with the Board and its sub-committees in order to gain a detailed understanding of the organisation’s requirements, and likely tolerance for risk. The initial part of their engagement was focussed on the review and amendment of the organisation’s Investment Policy Statement (IPS).”
What was the result of those early meetings?
“Minchin Moore helped the Board better understand its fiduciary obligations in regards to the investment portfolio. From there they developed a new IPS which was presented, discussed and finalised with the Board. They then developed a detailed investment plan designed to be congruent with the new IPS”
How is Minchin Moore involved these days?
“They present to the Board on a quarterly basis and provide a comprehensive and bespoke report on our investments. As Board members depart and new members are appointed, Minchin Moore run an induction workshop in order to ensure each individual Board member is fully versed in the IPS and the organisation’s investment philosophy.”