Starting a small business means that you are your own boss. You get to decide what your business is going to be and where you’re going to take it. And while it may seem like a lot of pressure to make all the decisions, it also allows you to choose who you work with and how you go about doing your business. Despite all the work, the freedom that comes with it is well worth it.

Hey guys welcome back to another episode of business uncut today, we’ve actually got Wayne from New Wave for financial planning, joining us today and Wayne is heads up that division, Wayne has been in the industry for some time now and we just want to get his thoughts because this is one of the, one of the areas that a lot of clients have been asking about it’s a topic where people still don’t understand how to align their business with wealth, their personal wealth, what they need to do in terms of reaching their goals and so forth and just hearing some stories about, you know what Blaine’s been through so Wayne Welcome to the show, welcome to the podcast.

Hello everyone and thanks for having me.

Yeah, no worries. Maybe I’ll just start off a little bit why in just a little bit about itself, a little bit of that new way financial planning maybe just his personal life to give the audience a bit of an introduction to yourself, I guess, yeah sure. I guess the stock standard is how I got into financial planning. I’ve been doing work in Cyprus projects for probably 12 years now. I was in the lending space, and I didn’t have a degree and I was getting to a certain area in my career and it was hard to get ahead without having a degree. So I made that decision as a mature age student about 24 went casual and went back to uni knew I liked finance and wanted to stay in that area but it wasn’t until I got some direction from a uni lecturer who said that financial planning will probably become degree qualified like as a mandatory. So see, she’s just that. Yeah, the rest is history.

Yeah, good and and obviously you have family recently.

Yes, yeah pretty young family So Caitlyn and I have we have two boys, one, two and a half and the other six weeks. Yeah, so plenty of love in your hands at the moment, but a bit of a handful but yes good, loving, Awesome. And originally from from Toowoomba.

Don’t hold that against me though, moved out, you know, when I could, and love it here on the Gold Coast.

It also. Now, one of the first aspects I want to touch base on and a lot of clients and even friends and family. They ease that stigma around financial planners and financial planning and I think it’s been built over some time now because of all of the bad press and, and, I guess, there has been some bad situations. Yeah, I just wanted to get it from your point of view, like what is the difference between a financial advisor in this thing in the, I guess a stereotypical financial planner.

Yeah, no it’s a really good point and unfortunately there is that stigma. A lot of it comes from and kind of touched on before with the degree. It was a pretty unregulated industry. So while there was a lot of good financial planners out there doing really good work, people do quite a few really bad advisors doing bad work, and they were acting within the guidelines but it was just so unregulated that there was a lot of horror stories coming out of that and unfortunately, kind of financial planners all got that same. Yeah, as far as stories you can talk about or
not for me personally like that I have places I’ve worked everywhere has been great but I do hear stories is mainly about fees so just charging huge fees and not providing good quality service not providing what the clients asked for, but it’s just that these were not in compared to that comparable to the service that was being yeah but I think that was the main thing you know you really hear horror stories where people take people’s money. I don’t even know how that would happen but yeah you do you do hear stories like that and

I think one of your one of your team members Brock he always jokes around about glorified insurance brokers salesman. Yeah, that is, in a sense, it’s you know it’s a joke, it’s a running joke but there are a lot of financial planners out there who are just glorified insurance salespeople, yeah definitely and I guess that comes from like an umbrella approach that an insurance like a personal insurance sales can be classed as financial planners, yeah planning. So some people out there that just focus solely on insurance to call themselves, financial planners and more technically correct, and yet get to that standard that is financial planning.

This thing has come from these people that have created basically a cookie cutter approach. It’s basically a sausage factory they’re getting clients in and just churning and it really and that’s what you want to stay away from really.

Yeah definitely, yeah it’s it’s not a sustainable kind of business around and it’s not going to benefit anyone really. Yeah, that’s awesome, it was also very, like, understanding that is valuable in itself what we’re going to go through today and then the reason why the weigh in on here is just to get a good understanding of how you should be utilizing a financial planner, what advice I can give you and why it’s important in the first instance and how to stay away from these cookie cutter approaches and these, these, you know these glorified insurance salesmen now don’t get me wrong insurance is a part of life, and the and having adequate proper insurance that are aligned with your goals are super important, but you have to choose the right one and then you have to make sure that it is aligned with the goals and this is a natural process to have rather than just picking the first thing that comes in front of you, it gives the financial planner the best, their best commission or whatever it may be, yeah 100% Yeah, definitely great,
yeah. So, let’s talk about, maybe I’ll start off with wealth and business, because obviously, actually you know what let’s take us back a little bit, what do you what, what does a financial planner do.

Yeah, it’s really broad topic but I believe a financial planner should be looking at a personal sich a person’s personal situation and goals, and then putting in their financial plan to make those happen. So sometimes it might be as simple as setting up an investment or sometimes it’s getting more control under their money, or, you know, saving for certain things, or a combination of everything but it’s really comes back to understanding what the client wants, and then providing the roadmap on how to get there in the best, best situation for them.

Yeah, I like that because there are approaches out there where some financial planners and artists, specifically focused on property, and whatever it is for me, I always think about that man like well is that the right approach for everyone and it’s probably not, because everyone has a different situation. Everyone has a different plan in life. And that’s why financial the word planning and financial planning is, I think it’s more of a holistic approach rather than just looking at property or managed funds, or whatever, I completely agree, and on the planning side of things you can have a rigid set goal and plan and put that in place, and then a year later something happening. Things completely change, whether it’s bringing children into the mix or, or, you know, you just have a load test your focus sheets and you got to realign so that planes do change but it really comes back to what you want at the time and yeah and making that happen in a smart way. Yeah, so the listeners out there, we are going to talk about, you know, the, the position that you’re in right now. The life cycle, What you are doing right now may be different for you doing a 10 years 20 years 30 years down the track, we’ll just have a chat about that but because this is a business podcast, of course we’re going to try and talk about building personal wealth and aligning that with your business as well, because I come across a lot of clients that correct in their business. Yet, really, really struggle in terms of building wealth and prosperity in their personal life, aiming towards their goals for some reason their businesses thriving, and they haven’t really aligned what they want to do and some people just, They’re just like that we just want to grow their business, they don’t care about, you know, the personal property investments or they just want to live off two minute noodles every day, and that’s fine but most people are probably like that yeah, but I think they need to do to get a good understanding so can you tell us a little bit about your ideas around building wealth personally and aligning that with business.

Yeah, sure. Yeah and I think what you said there is is pretty common, and really sums that up. So, usually, people are self employed people, you focus on the business because you’re passionate about it, it is your main goal, but there is that other element that it is there to make you money and get your, make sure your personal goals happen, but what tends to happen is you focus on building that business growing that business and you put your personal finances or personal goals to the wayside. And then, often your personal kind of wealth, doesn’t match your business well, or maybe not, well, that satisfaction. Yeah, so, yeah, we spent a lot of time on focusing on the personal side and what’s needed there to make sure it does match what exactly the business, because that’s what I always like to say to clauses, please start off with the end goal in mind. Why get into this slot people that are against the business because I love doing what I do but ultimately it’s a business and you’re gonna put capital into that, which means that you need some type of return out of that to satisfy your doing personal. Yeah, definitely. And that’s why I really want to talk about this sort of, when people are planning and obviously you know these last couple of years of business it’s always hard. Unless you’ve been given a couple of million dollars to start your business in the first instance, it’s super hard to start a business. So, yeah, you know, how should the How should people that are starting their business online their personal side.

Yeah, That’s a great question and I think with any goal or any plan that earliest the Early Start planning that the better result or outcome you can have. So, you know, you might need to spend a bit of time making sure you’re building up the right amount of personal savings to get by, because your income, you’re probably going to lose the income that you have at your current job, and everything’s going into the business and you can’t draw away to an income to begin with. So you need to plan, like what that expense is going to be to keep things running personally make sure that you’re not bringing stress on there, but then making sure you can keep everything in the business to begin with, To see if necessary.

Yeah, and is that something that you’ve worked with with clients on let’s say, for the first 12 months, do you sit down and say well, what are your non negotiables in your life, personal spending like if some people want my gym but it’s never gonna happen. Yeah. Is that something that you would go through with
them definitely yeah so it does come back to personal preference but that’s ideally what we’ll be doing is getting right down to the nitty gritty and the details. So working out exactly what your fixed expenses are, and, you know, whether they’re going to change or not really they, they don’t so that might be your rent, your mortgage, your electricity groceries those basic things, not understanding what you need to live on, you know, week to week, month to month. Then also, you know, outside of that you do still have to have a life and have some funds you need to have a bit of a buffer in there. But, and then from there you can really plan okay well this is the savings, this is going to get you through say six months, no income, and then you can hopefully get the business to that level that you can start paying the simple way so you essentially know in some instance, how much the business needs to be making to make it viable one, so that you can continue running the business and grow the business and to, to live a life that you’re, you know, at least for the first couple of years just be happy with.

Yeah, definitely, yeah that’s it and sometimes people would be, you know already, in that process and might be a year or two into running the business that aren’t needed pulling out money every now and then to get by, and still don’t really understand how much they should be paying themselves on me to be paying themselves. So, that’s another thing that we can do as well, like if you’re already in that process work out what you do need to be paying to make sure it’s affordable, but working with the ants and the business owner, and then getting that kind of structure back in place that you typically have when you’re an employee, yeah, and that’s a good point, that’s a good sort of segue to go into, into the second stage is that we were speaking about startup businesses where you sort of don’t know but at least you’ve already planned a year or two in front of how much you need. Now if you have reached that point where the business is profitable. I do find that a lot of clients don’t understand that money that they’re leaving in their bank is, is basically, in a sense, with inflation and all those sort of aspects and earning an opportunity cost you actually losing money which is sitting in there so you need to think of strategies and then this is where you guys come in, into with that surplus income or profit. What is that best put towards that and maybe it’s different for everyone right

yeah yeah exactly, it comes back to preferences, timing and goals. So, you know, you might have a goal that it might be best to keep it in the business if you’ve got some big expenses coming up or you’re hiring more people are buying a lot of product. But then at the same stage, you know, there might be other ideas where you want to get a bit more return on the business so you know, if you’re saving for investment property, personally or with the business and buying property so there’s so many different goals, and, and everyone will be individualized in that approach, but you’d need to kind of understand what they are, or work out what they are spend the time on working out what they are, and then putting the plan in to make sure that that happens. Yeah, that’s good. Even for myself personally, this is something that I’ve been working on for the last couple of years. And just to share an example the first couple of years, you know, I worked out in the new work business that I can live off $400 a week, and the rest I just wanted to really invest back into the business I see business. This is where you need to level up to level it up and balance it because I see business as one of if not the best return in investment that you can have. There aren’t many investments out there that can provide you with a, you know 2030 40% return on your, on your actual capital,

how much, just as an overview like shares or debut returning an average
you I guess we’re always trying to approach that on a conservative Yes, I’ve been believe, if you’re looking at a higher risk, you’d only be expecting that 10 12% return. Yeah, obviously, there can be a lot higher than that, either depending on markets but, yes, that’s I guess a good safe way to talk 10 12% of managed funds are sitting around the same risk center around that same kind of,
yeah, and then you have property that’s probably what property, you know, four or 5% Yeah, so we’re just working on averages here guys but we’re looking at like different ways you can invest your money and then obviously then you have cash has basically nothing in particular probably nothing for a little bit of time. Going forward, the rates are just basically steady at the moment, so you got to think about, you know, how much do you leave in your business, but how much do you also take out as well. Now, going back to my situation. There was a point in now, where more and more money which is being invested back into the business but I had also a true believer of building equity in your own name as well. So, business poses risks in any business no matter what it is, there is that slot race of it, just collapsing, in a sense, so I like to diversify my, my investments, not only in business, but also start to pull out some of that monies to invest into property build up equity there, Strengthen your your strength, your personal finances so that you continue to leverage and so forth now yeah. Is that something that you know you help clients with as well.

Yeah I think so yeah definitely. And in conjunction with you guys are the accountants and I guess that’s what’s really good here that we can kind of have that really close relationships, to make sure the business, the personal side, and both are aligned. But yeah, that’s definitely what people will put everything into the business and then sometimes your business not might not even be a saleable business so long term like making money now but long term can you sell it in 2030 years, will that be your retirement. Sometimes people are the business, so you really need to look at while the business, once it’s up and running, start looking at definitely the word is in diversifying diversifying some of that money and risk. And you can do that by bringing it out of the business into your personal name and then you have the same investment options basically in a business or personal. Yeah, it’s a big thing you got to think of long term, yeah always have that in the back of your mind about what the end goal is yeah for sure I have you. Do you have any stories we’ve seen businesses that have been doing really really well. And just for many years and then, now they’re starting to think about the personal side, investing in diversifying to get passive income, you have a transition, transition, transition into that sort of aspect.

Yeah, definitely. Yeah, no, so I’ve seen, I’ve worked with companies whose businesses are going really well. And then, like we said at the start, just really kind of neglected the personal side of things, and while it wasn’t bad, it just didn’t, they weren’t the same position personally as a business, yet was. So we spent a lot of time working out what what was needed, what the personal goals were some of them were like financial goals but some lifestyle, lifestyle is just as important, so making sure that you can afford them and then making sure it’s worth it. So, that there has been some instances where we’ve got down really nitty gritty and I guess you could say kind of structured and cleaned up the person on the business side of things so separated made sure everything was nice and separate, and then making sure that they both, both work well. Yeah, I’ve seen some really good results and a lot of it, you know, there might be the financial results but it’s also the stress levels, A lot more comfortable when you know exactly what’s happening, you’re not worrying about bills and this secure ID risk. Can you seeing investments slowly grow that you’re getting that growth and getting that return, and your business is still doing well, and you can afford to personally build Well, yeah, and it brings a lot of stress out of day to day

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