This week is part 2 of our conversation with friend and former Financial Advisor, Dale Scally. If you didn’t get a chance already, please take the time to listen to Episode 24 – it’s an incredible and candid conversation full of refreshing insights from which you’re sure to glean some value.
Dale has been a finance professional for 23 years and a business owner and Director for 11. Dale has recently transitioned out of financial advising and evolved his career into business coaching with the objective to raise the financial IQ of the Australian and global population.
We sat down as finance professionals and contemporaries to discuss all things to do with financial advice and financial planning. This week we are continuing to unpack the special report published by Stephan Independent Advisory which you can find here called:
Your Financial Road Map: A step-by-step plan to help you manage your wealth for the next generation.
The Wealth Management Formula
The perfect formula for wealth management is the right mix between investment consulting, advanced planning, and relationship management.
Investment Consulting
When family business owners engage a wealth advisor, they’re conditioned to expect expert, investment-centric advice. But investment consulting is only one part of the equation, and it’s not particularly helpful in the absence of an overarching wealth management solution.
Having a comprehensive wealth management solution is about understanding why we make the investment decisions we make, and the relationship between the client and their finances.
With 85% of Australia’s financial advisors being affiliated with a bank or financial institution, often advice is skewed towards a specific product, and may not be in their client’s best interests. The advice model should always put the clients life goals and financial objectives first.
Advanced Planning
Advanced planning can ensure a comprehensive wealth management strategy that sees the family business owner and their family looked after into the future. Advanced planning includes:
- Wealth Enhancement – creating wealth through maximising cash flows and minimising tax liability.
- Wealth Transfer – dispersing assets and capital to the next generation during the business owner’s lifetime and through estate planning.
- Wealth Protection – investment planning and risk mitigation; identifying personal and financial risks and putting in place insurances and other strategies to protect long-term goals.
- Philanthropy – charitable giving within a sustainable and tax-effective framework.
Robust advanced planning is necessary to ensure the client has the best chance to achieve their life goals and financial objectives.
Relationship Management
The last part of the equation is relationship management. Relationship management is all about building the right team of professionals in the financial services sphere to work collaboratively for the client’s needs so that they have the right expertise at their fingertips to achieve their financial goals.
No one wealth advisor is an authority on all disciplines, so the brains trust of professionals may include accountants, financing experts, commercial and estate planning solicitors, personal insurance advisors, and business management consultants.
Listen to the full conversation on Episode 25 of It’s Never About Money.
