Do you have a Extended or Blended family?
Let’s face it nearly half of all families are blended as close to half of all marriages & partnerships split up.
Let’s take up one scenario which we know of and it is a simple & common scenario.
It was now way back in 1986 when markets were positive & there was no such thing as compulsory superannuation or SGC. ‘Colin’ who was earning enough to have to pay taxx & wanted retirement benefits for the future took out a superannuation plan. This was deductible & it had life cover on it to cover his mortgage & to provide something for his family. He nominated his wife as beneficiary on 2 policies.
All good so far.
However as it happened & we all can get too hard to live with there was a split 10 years later & a subsequent divorce.
As ‘Colin’ needed a kindred spirit he found another partner. Is that uncommon? As his three children were still at school or needed financial assistance then he contributed to his ex spouse over another 10 years.
But just this year ‘Colin’ took his last puff. He still had his original will made out to his ex & family. He hadn’t changed his beneficiaries to his new partner or changed it in anyway.
Thus his executors who aren’t professional & don’t do this more than once have to decide all this. If it was too hard for ‘Colin’ then what chances are that they get it right.
If you are the executor of a will have you researched into what your responsibilities are.
If the funds do go to his adult children then they will be taxed at 15% or 30% on the lump sum as now non dependant. At least there is adequate money to distribute which may not be the case in your union fund. ‘Colin’ elected not to opt in for advice & hence the family suffers the consequences.
This is a simple & common scenario but there are many more.
What if as happens ‘Colin’ has a child to the new lady. How common is that? What does the executor or the trustee of a super fund do then?
We had ‘Norman’ here recently. He has, as does a neighbour, children younger than his grandchildren. How extended is that? He has assets & a business with debt on it. Yes he does have life cover but the above questions still apply.
Then there is ‘Anthony’ who is one of many on his 3rd marriage. Who does he leave his legacy to? Is it his spouse or his grandchildren or a charity. It’s his choice but if he hasn’t actioned an estate plan then who knows & at what cost to solve the challenge.
An estate plan can be a simple or as technically difficult as the law can be. Hence a simple step is a meeting to look at the simple basics & the next steps to take such as
‘Dying without a will is courting chaos: claims against your estate’
Wills ensure you have the last word: properly drafted wills
Prevention is always easier today than after the event. We aren’t members of the 1st profession but financial planners who first consider the holistic picture. We can direct you to our estate partners.
Then there is this ‘death or serious illness can create huge problems for self-managed funds’
‘ a common characteristic of high-net-worth individuals seems to be that they're more than happy to seek, and pay for, good quality advice’
We welcome your call on 07 3848 1088 or email or our websites
John McAuliffe
Traits that make you filthy rich.
Traits that make you filthy rich.
So what are the traits that make you filthy rich?
A question that David asked us last week. Let’s go back to basics at the moment & drop the filthy as all goals need to be achievable. However the multiple billionaires both here & elsewhere would state that the status of a billionaire is easily attainable.
All observations & there have been many say in the classic Napoleon Hill ‘Think & Grow Rich’ that all have a passion for their idea & which they have grown into a business.
Hence we only need to look closely to the Murdock’s & the Packers & maybe the Hancock’s to trace back to a simple idea. They & the families in these cases have grown the seed of an idea into a business. They have taken generations but at each step from inception to maturity there has to be the passion to progress & break through.
Of course this passion can be achieved by you or your neighbour. Another classic ‘The Millionaire Next Door’ demonstrated that certainly rich, say a millionaire, could be in your suburb. The challenge for your neighbour who is in his own business is to maintain that passion & hence the need as explained in ‘The E-myth revisited’ is to build a business which functions without the original entrepreneur.
We are working closely with Owen at the moment who has an idea that could leap him into the rich & maybe the very rich. He has striven for six years to break through. He has the passion to make it happen sometime. Has Steve Jobs passion for Apple?
A second tip would be that all have listened to others. This again is discussed in ‘Think & Grow Rich’. All have had mentors or coaches or teachers be it their father say Tiger or Gina or surrounding themselves with the best & the brightest.
Those Formula 1 drivers might have the passion or ‘madness’ to drive their cars but they don’t look under the bonnet or change the tyres. Any sustainable business which is built on an idea needs the very best to build & expand that idea. A jack of all trades won’t do.
The entrepreneur is the general of the business but he needs his commanders & his troops.
Our visitor today is the CEO of 3 companies employing 120+ staff & owned by one man. This entrepreneur has built a business from [yes CHC].
These mentors to the entrepreneur may change over time.
However the entrepreneur always listens.
Another tip is [We suspect] that most have some challenges early in life. As Archie would say ‘a splinter in the banister of life.’ When there is no turning back then the way must be to go forward.
We only need to go back within our own families who immigrated here. After months at sea then if you survived it then you were unlikely to make the return trip. It would be a good study to see how the current boat asylum seekers make out over the next few years. We would observe those previous groups say after the various wars who made Australia home.
You would have to say that many are rich & no doubt some are filthy rich. Many of course never discuss these issues with anyone else.
Owen who we mentioned above certainly has had more than his share of splinters. However with another common trait of persistence then we expect him to make the rich ranks.
Yes that is another trait persistence to crystallise the idea through. It was yesterday that we meet Louie who we have know since 1994 who has on his desk the classic picture with the frog being swallowed by the heron but resisting by strangling the throat. i.e. never, never ever give up.
Again Napoleon Hill & you would have plenty of examples.
Of course you need a little luck to go your way & you need to recognise the opportunity when it arises. However it is the persistence that will separate the winners from the also rans.
One other tip is that it is all meaningless, we would argue, unless you share it with someone. Hence a final clue would be remain married. This is certainly easier said than done & the statistics arguably 40+% state that.
We know how difficult we are ourselves to live with.
However the general observations are that most are scarred financially and emotionally & it takes time for these scars to heal.
Hence one goes backwards when divorce occurs. It could also be a business divorce.
Rupert, amongst others, would show that it doesn’t mean a permanent distraction but in general some prevention & life balance would be wise.
One final tip is that you [probably] don’t want to share it with the Red Queen or provide other social justice donations.
Hence minimising taxx within the ever changing rules makes sense. All need capital to grow a business & losing your hard earned to government waste is a waste.
We return to tip two & before June 30 is the time to minimise your taxx. As everyone is different then we can only generalise that most can be financially tuned up.
One final observation. All the rich & the filthy rich build & invest in businesses. I.e. the house or investing in a house is not on their business plan. Just ask Warren Buffett.
Here are five+ tips & we trust in the above there are some tips to help achieve ‘filthiness’ for you.
Welcome to call us on 07 3848 1088 or email us @ info@wealthcoach.net.au
Are you listening?
John McAuliffe
So what are the traits that make you filthy rich?
A question that David asked us last week. Let’s go back to basics at the moment & drop the filthy as all goals need to be achievable. However the multiple billionaires both here & elsewhere would state that the status of a billionaire is easily attainable.
All observations & there have been many say in the classic Napoleon Hill ‘Think & Grow Rich’ that all have a passion for their idea & which they have grown into a business.
Hence we only need to look closely to the Murdock’s & the Packers & maybe the Hancock’s to trace back to a simple idea. They & the families in these cases have grown the seed of an idea into a business. They have taken generations but at each step from inception to maturity there has to be the passion to progress & break through.
Of course this passion can be achieved by you or your neighbour. Another classic ‘The Millionaire Next Door’ demonstrated that certainly rich, say a millionaire, could be in your suburb. The challenge for your neighbour who is in his own business is to maintain that passion & hence the need as explained in ‘The E-myth revisited’ is to build a business which functions without the original entrepreneur.
We are working closely with Owen at the moment who has an idea that could leap him into the rich & maybe the very rich. He has striven for six years to break through. He has the passion to make it happen sometime. Has Steve Jobs passion for Apple?
A second tip would be that all have listened to others. This again is discussed in ‘Think & Grow Rich’. All have had mentors or coaches or teachers be it their father say Tiger or Gina or surrounding themselves with the best & the brightest.
Those Formula 1 drivers might have the passion or ‘madness’ to drive their cars but they don’t look under the bonnet or change the tyres. Any sustainable business which is built on an idea needs the very best to build & expand that idea. A jack of all trades won’t do.
The entrepreneur is the general of the business but he needs his commanders & his troops.
Our visitor today is the CEO of 3 companies employing 120+ staff & owned by one man. This entrepreneur has built a business from [yes CHC].
These mentors to the entrepreneur may change over time.
However the entrepreneur always listens.
Another tip is [We suspect] that most have some challenges early in life. As Archie would say ‘a splinter in the banister of life.’ When there is no turning back then the way must be to go forward.
We only need to go back within our own families who immigrated here. After months at sea then if you survived it then you were unlikely to make the return trip. It would be a good study to see how the current boat asylum seekers make out over the next few years. We would observe those previous groups say after the various wars who made Australia home.
You would have to say that many are rich & no doubt some are filthy rich. Many of course never discuss these issues with anyone else.
Owen who we mentioned above certainly has had more than his share of splinters. However with another common trait of persistence then we expect him to make the rich ranks.
Yes that is another trait persistence to crystallise the idea through. It was yesterday that we meet Louie who we have know since 1994 who has on his desk the classic picture with the frog being swallowed by the heron but resisting by strangling the throat. i.e. never, never ever give up.
Again Napoleon Hill & you would have plenty of examples.
Of course you need a little luck to go your way & you need to recognise the opportunity when it arises. However it is the persistence that will separate the winners from the also rans.
One other tip is that it is all meaningless, we would argue, unless you share it with someone. Hence a final clue would be remain married. This is certainly easier said than done & the statistics arguably 40+% state that.
We know how difficult we are ourselves to live with.
However the general observations are that most are scarred financially and emotionally & it takes time for these scars to heal.
Hence one goes backwards when divorce occurs. It could also be a business divorce.
Rupert, amongst others, would show that it doesn’t mean a permanent distraction but in general some prevention & life balance would be wise.
One final tip is that you [probably] don’t want to share it with the Red Queen or provide other social justice donations.
Hence minimising taxx within the ever changing rules makes sense. All need capital to grow a business & losing your hard earned to government waste is a waste.
We return to tip two & before June 30 is the time to minimise your taxx. As everyone is different then we can only generalise that most can be financially tuned up.
One final observation. All the rich & the filthy rich build & invest in businesses. I.e. the house or investing in a house is not on their business plan. Just ask Warren Buffett.
Here are five+ tips & we trust in the above there are some tips to help achieve ‘filthiness’ for you.
Welcome to call us on 07 3848 1088 or email us @ info@wealthcoach.net.au
Are you listening?
John McAuliffe
