The value of your farm has skyrocketed meaning your equity position is looking much stronger and because interest rates are at all-time lows, your bank is getting a lot less of your cashflow. Equally, some reasonable rain has fallen so your crops are looking better than they have for some time and finally cattle prices are strong.
For the first time in years you get the sense that things are going alright financially. You start thinking it might be the right time to get some advice about starting to invest off-farm, kick off your succession planning, or maybe even starting to plan your retirement - however far off that is.
But
But the idea of getting financial advice is a little daunting and way outside your comfort zone. Also, it's hard to see the value of advice which seems intangible compared to a shiny new tractor, cattle trough or wheel line.
The fact is the value of advice from a bloody good financial adviser can be life-changing for your family. Yet while many people think about it, most never take action. In my experience they don't seek advice as they only see cost of advice and not the value.
So what is the value? Well there's the obvious value, for example setting up and managing off-farm investments for you. Then there is the less obvious value which is where I believe most of the benefit actually lies and which most people miss.
Following are 'The Four Values of Financial Advice' you should receive from a great adviser, therefore increasing your family's chance of financial success.
Financial Value (Making a difference to your life)
A great adviser will be able to help you understand what it is you really want to achieve (your goals) and give you advice on how to achieve them. These could be things like reducing debt, reducing tax, saving money, protecting your assets, helping you invest in quality assets and making money work for you, planning your retirement, or even helping you along the succession planning journey.
Intrinsic Value (Educating you)
Achieving and maintaining financial success can be a big job, made much simpler by a good adviser helping you get financially educated, focused on what needs to be done and overall getting organised. They can explain in plain English the financial complexities in your situation and the 'financial' rules that need to be navigated, highlight the options available, the risks and rewards and ultimately help you choose the best option for you.
Practical Value (Making life simpler for you)
They will take care of a lot of things for you for you, saving you time so you can focus on more important things like spending time with family or running your business. They can then implement their recommendations for you or work with you and your other professional advisers (accountant/banker/lawyer) to get the advice executed correctly.
Emotional Value (Making you feel better)
There will be challenges along the way in life, but with solid advice and a flexible but robust financial plan, you'll be prepared. You should have a greater sense of control, less worry and the peace of mind knowing you're not alone. You also have the relief knowing that you've taken action and you will have less chance of making rash or ill-timed poor decisions.
Of course the key to all this is having a bloody good adviser and they need to be qualified, competent and experienced but above all, they have to have your best interests at heart.
Cheers,
