Financial planning for busy executives

A successful and demanding executive career often leaves little time to devote to your own finances. Constant time pressures can lead to important decisions being rushed, paperwork being overlooked, costly and inefficient arrangements, and potentially wasted opportunities to maximise your strong earning potential.

Struggling to make time to critically assess your financial arrangements can mean you may end up:

  • missing out on employment benefits
  • paying too much for debt arrangements
  • holding surplus cash ineffectively
  • neglecting all available concessions across the household
  • overlooking important aspects like insurances and estate planning, and
  • rushing to end of financial year and through tax time.

Unfortunately, rushed decisions can have long-term consequences. It may mean investments aren’t structured in the most tax-effective way, or that you enter into investments (such as by borrowing to invest) which initially have tax benefits but can lock you into your high-paying and high-pressure job to service the debt.

While super is still a very tax-effective structure to invest in, for high-income earners there’s not a lot of wriggle room. That’s because your superannuation guarantee is likely to use up all your concessional contribution cap, or your total super balance may be more than $1.6 million ― in which case you can’t make non-concessional contributions either. However, you’d be surprised with what you can still do – particularly if you can work together with your spouse to build super as a couple.

What’s not so surprising is that for many busy executives, the responsibilities, long hours and stress that go with the job can take their toll - driving a desire for a career change, tree-change, to be your own boss – or for some, an early retirement. This means developing a financial plan that involves building wealth inside and outside of super is critical – and, the longer you have until retirement, the more flexibility you can create in your finances to enable you to adapt.

So, how can you create a clearer path forward that offers you the flexibility and choice you want for your future? By taking time now – during what may be your peak income earning years - to focus on setting the right framework for your finances, you can be more confident that your plans will actually become a reality.

Enlist specialist support

Just as you may be skilled at delegating tasks whilst remaining in control, this same approach can work well for managing your finances – by delegating to a specialist financial adviser. They can help you take control and establish a framework for your finances, and then keep you on top of progressing your plan.

Engaging a financial adviser can take the pressure off you – not only by ensuring your money is working just as hard as you are – but also saving you time so you can focus on what’s important to you.

This insight may contain general financial advice and was prepared without taking into account your objectives, financial situation or needs. Before acting on any advice, you should consider whether the advice is appropriate to you. Seeking professional personal advice is always highly recommended. Any forward-looking statements are based on current expectations at the time of writing. No assurance can be given that such expectations will prove to be correct.

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Ishara Rupasinghe

Executive Director

Ishara Rupasinghe has been with the firm since 2007 and is a director of the Family Wealth Management team in Canberra.

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