Farm Owners Wealth Management
Getting the Next Step Right
After a lifetime of hard work you have sold the farm. And you look forward to not having to worry about the early morning starts, the stock or milk prices, too much water in winter, and not enough water in summer.
Its time to rest and start thinking about the next chapter in your life and all those things that you have dreamed of doing for years.
Starting the Next Chapter
After the sale you recognize that your skill set relates to success in farming and that you have a substantial amount of funds to manage. You recognize that the skill set that got you here may not be right for the next chapter. Areas that you are likely to be thinking about.
Income
How much income do you need and how will you earn it. How much of your funds do you need to allocate to this area. How sustainable is this income, or could it be vulnerable to changes in interest rates, and what can be done to prevent this?
Capital Spend
Now its about getting comfy for the next stage in your life.
Renovations to home, updating vehicles and maybe the purchase of a holiday home.
These are important as you look to enjoy the outcome of your hard work.
Help for Family
You now have your income sorted, and how you want to live the next chapter is also in place.
Now its time to think about those most important to us such as our children. You care about them and want to help them on their way. What is the best way to do this and avoid common pitfalls?
Getting it Tidy
Working with your Financial Adviser, Accountant and Solicitor , its important to remember that everyones financial situation is unique to them.
Somewhere in here reviewing Wills and Powers of Attorney will make sure everything is in order.
Important Considerations
You are reallocating assets to me new financial and non-financial objectives. Important considerations will be;
- How Involved Do You Want to Be?: After their career in farming, some investors like to be hands on and actively taking care of their investments. This can be right down to maintaining buildings and looking after tenants needs.
- What Do You Like?: For those that have made their wealth in farming, some may find comfort in re-investing in whats familar to them. Meeting investment objectives and how we sell the asset at the end can be an issue in this area.
- What’s Your Risk Profile?: All investments are different. At one end are term deposits as the lowest risk, but may not keep up with inflation. At the higher end are financial markets. They go and and down in value every day as did the value of your stock and farm, but in this case, you can see that value movement. An important consideration is to take a risk profile test to see what your responses will be.
- Assets Outside of NZ: Throught their careers, many farmers recognise that they have made their wealth from agriculture down the bottom of the world. They have often felt vulnerable to bio-security and economic risks and they understands NZ’s vulnerability in this area. Therefore an important consideration for some retired farmers is ensuring that they have some of their assers outside of NZ.
Discussions Around Protection of Your Assets?
And last but not least. Its likely you have created a considerable asset base that has positive financial outcomes for you and your family – a legacy. And you want to ensure that this legacy passes to your children and your grandchildren.
Therefore, if you have not already, then you will want to have discussions around protection of your assets. What do you want to achieve, and what is the best structure for this?
We can then have discussions with you about what we think is the best structure. Then, if you want to take are ready to formalise these suggestions, we would refer you to your legal team in the first instance. And its likely that you may also work with your accountant to understand any tax implications
Get in Touch Today
Take control of your financial future with Earnslaw Goodlight’s services. Contact us for a discussion to how we can help you. Call us at 0800 827 827 or email info@earnslawgoodlight.co.nz to get started.
