Strategy is around us every minute of the day. As we walk through the cities and suburbs, we see high density housing popping up everywhere as the governments and councils of the day act out their strategy of providing increased housing. Well, not really, more housing means more stamp duty and council rates – a pure and simple “financial greed” strategy at work. On the flip side, increasing housing density means a lot more traffic congestion and frustration from rate and tax payers. No thought in respect of a traffic strategy other than building a motorway or two to bypass the density housing – even though it takes 30 minutes to get to the motorway.
Take the time to think about it today. In your business or your career, what strategies have you put into play and have you got the results you wanted. A classic case is CPD. You know how I feel about that – a lot of it is Crap Professional Development. You may not know but under the new FASEA standards that apply from 1 January 2019, each SMSF adviser is going to have to do 40 hours of CPD. Now this is not 40 CPD points where an Association gives double or triple points for their CPD hours – it means real, recorded, hard-core CPD hours. And as an SMSF educator who has been fighting to improve the quality of SMSF education, I am all for that. Let’s face it, if your strategy is to put 40 hours of the best quality SMSF advising CPD into your brain, you will reap the rewards. The benefit is leveraged and enhanced if the same quality is fed into your organisation so that not just you, or you and another adviser, but several of you are all singing from the same SMSF advising hymn book. A simple strategy to turn a business into an all-encompassing SMSF Learning Organisation with built-in succession planning and a career path for the younger brigade.
All from adopting a simple CPD strategy.
In terms of SMSF advising, what is your strategy? Is it to simply get funds on the books to pay recurring administration fees. Certainly, a great strategy for accounting firms and one that has stood the test of time over the past 25 years. But is that really SMSF advising – well you know the answer to that one.
So – what is a strong strategy theme behind SMSF advising? Perhaps it is tax. Of course, there are huge tax savings and I for one have pinned my career on the tax benefits of SMSFs over every other vehicle, despite their limitations on access. The only problem with this strategy is that as the Government’s budget falls into disrepair, the larger scale SMSFs will come under increasing attack – think pension TBAs, TRIS, refundable franking credits and borrowing in a Fund (maybe even some death taxes on larger SMSF estates?) and suddenly our tax strategies start to falter leaving family trusts looking a bit brighter.
And so I have changed. For me, SMSF advising is now all about bloodline. That’s my theme for the next 25 years. Now for some clients who want terminal funds, those that die when the last surviving member of “mum and dad” die or become incapacitated, bloodline is not for them. But for SMSFs with significant assets, bloodline is the killer theme.
How do I know. Well, I have been around the SMSF block so many times and tested out so many themes and strategies and I know, with absolute certainty, that Bloodline is something that is near and dear to our biggest and best clients. Seriously, do you think that they want their hard-earned life savings being passed to the daughter-in-law or the rough boy who has been living with their daughter for the past three months? Of course not. They want to leave a legacy and provide, as best as possible for their bloodline. If it’s good enough for Queen Elizabeth and the monarchy, then it is good enough for them. And I have seen and witnessed it through more than 100 hours of seminars on the subject. It has a 90%+ engagement rate – which is incredible and unlike tax which glazes the eyes of many Trustees (particularly ones like my mum), bloodline gets their well, blood boiling. And what better client and what better business strategy than to have a theme of total client engagement.
So, as we head into Christmas, think about your own bloodline. How are you going to secure your wealth for them and do you want to limit any help to bloodline only. I faced it only yesterday with my smart and sassy daughter Sophia, who has just been employed by the AFL. Earlier last year she asked for help in buying a car which, as a proud father, I did not hesitate at doing. But this week her boyfriend, who is a great guy and loves her to death, had his car go up in flames. Will I help him? Is he bloodline? Well you get the drill.
And so for those of you who want to come with me on the Bloodline path, and by the way it is not just SMSFs, but bloodline estate planning, bloodline family trusts, bloodline wills and insurances for younger bloodline members, my door is open.
So here’s what I suggest;
- Jump on our Strategist program which will give three people in your business or in your referral network the high-quality CPD you require for FASEA.
- As a Strategist member you will have access to our on-line RG146 course which has been kicking great goals not for the normal $765 but only $595 (GST included). Even if you have done SMSF advising for 20 years, it is a great refresher, good repository for all things SMSF including rulings and cases plus the best way to get the younger brigade up to speed fast! PLUS – it has 53.5 CPD points from the FPA and 32 CPD points from the SMSF Association (see what I mean). In terms of FASEA CPD hours we are working that out as we speak.
- Further, as a Strategist member, listen carefully to this one, when we release Lightyear Docs, an advanced documentation and strategy platform in February, your business will be able to get bloodline SMSFs, bloodline SMSF upgrades, upgrades from Family Trusts to bloodline Family Trusts, bloodline companies, ordinary SMSFs – Family Trusts and companies, bloodline pensions, auto-reversionary pensions, reserves, 13.22C trusts, JVs, employment agreements and well so much more all for $99 per document. But here’s the deal once you hit $500 in a month, we give you $2,000 credit for your next document or strategy purchases that month.
Now of course you can wait until 2019 but there is a lot of existing webinars and resources on bloodline in the RG146 course and in our Strategist member’s portal. Additionally, I will be releasing the Bloodline SMSF deed and upgrades in two weeks. So why wait, it’s only $295pm or $2,940 for the 2019 calendar year.
So there you have it – a theme, strategy and if you stick with me, absolute success (even if the markets tank and Australia goes into recession).