Executive Financial Planning
Financial planning is a hot topic at the moment with Ripoll, Henry and Cooper all having input on the future workings of a profession which is used by a large number of Australians.
The planning of your financial future is significant in that anyone who has implemented their financial plan has written goals and a plan to achieve these goals.
This is touted by most success coaches as the single most important difference between those who achieve success and those who don't.
Interestingly, a recent survey by the University of NSW found that people who have an ongoing service from a financial planner are not only richer, but happier as well.
This is because they see their future with a level of certainty.
Achievement of their financial goals has been broken down into small easy steps.
As a Managing Director of a large company, there is always a focus on keeping executives as long term employees.
Achieving this will protect the intellectual property of the business, reduce client loss because of change in business relationship, reduce disruption, generally boost morale, lower the total employee cost and generally improve overall business performance.
Employee benefit schemes have been set up for this very reason.
So why do so few companies offer financial planning as an executive benefit? Executives often spend little time arranging their financial future, because of the high proportion of their time which is spent at work.
As they are also on high incomes, the need to sort out the details of their finances may seem irrelevant, as there is always more available.
A business owner once commented to me that although he had turned over millions in his lifetime (he had a large, highly successful business), when he retired he could afford to live for 5 years before he had to sell his house.
He was aged 70 at the time.
He had always focused his attention on his business, never on his finances.
Consequently, executives often worry about their financial future, which takes their attention away from the job at hand.
The demands of the job may keep them from attending to the problem, but not from worrying about it.
This in turn has a number of consequences for the employer: increased stress on the executives, more likelihood of their being tempted to move to another employer for better remuneration, and less focus on their role at the business.
Executive financial planning therefore offers massive benefits for the employer, as well as the employee.
Individual financial planning can often be combined with seminars for the whole staff, or tailored to groups of staff according to interests, life stages, income or other categories as requested by the staff or their representative.
Surely the cost of this employee benefit will be far less than the benefit of a happier, wealthier workforce.
The planning of your financial future is significant in that anyone who has implemented their financial plan has written goals and a plan to achieve these goals.
This is touted by most success coaches as the single most important difference between those who achieve success and those who don't.
Interestingly, a recent survey by the University of NSW found that people who have an ongoing service from a financial planner are not only richer, but happier as well.
This is because they see their future with a level of certainty.
Achievement of their financial goals has been broken down into small easy steps.
As a Managing Director of a large company, there is always a focus on keeping executives as long term employees.
Achieving this will protect the intellectual property of the business, reduce client loss because of change in business relationship, reduce disruption, generally boost morale, lower the total employee cost and generally improve overall business performance.
Employee benefit schemes have been set up for this very reason.
So why do so few companies offer financial planning as an executive benefit? Executives often spend little time arranging their financial future, because of the high proportion of their time which is spent at work.
As they are also on high incomes, the need to sort out the details of their finances may seem irrelevant, as there is always more available.
A business owner once commented to me that although he had turned over millions in his lifetime (he had a large, highly successful business), when he retired he could afford to live for 5 years before he had to sell his house.
He was aged 70 at the time.
He had always focused his attention on his business, never on his finances.
Consequently, executives often worry about their financial future, which takes their attention away from the job at hand.
The demands of the job may keep them from attending to the problem, but not from worrying about it.
This in turn has a number of consequences for the employer: increased stress on the executives, more likelihood of their being tempted to move to another employer for better remuneration, and less focus on their role at the business.
Executive financial planning therefore offers massive benefits for the employer, as well as the employee.
Individual financial planning can often be combined with seminars for the whole staff, or tailored to groups of staff according to interests, life stages, income or other categories as requested by the staff or their representative.
Surely the cost of this employee benefit will be far less than the benefit of a happier, wealthier workforce.
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