Many years ago as a young CPA (Certified Practising Accountant) I used to help people meet their tax obligations and minimize their tax, but I felt that there was more I could do. I studied and became a CFP (Certified Financial Planner) to help people create wealth and plan for their future. I created the Financial Planning Pyramid (Wealth Control) to make it easy for people understand the concepts I had been teaching for the last 30 years.
The foundation of the pyramid is critical to the stability of the whole structure. Roy Disney (brother of Walt Disney) was the financial genius that helped make the magic of Walt Disney come alive. He said, "When your values are clear to you, making decisions becomes easier." At Black & Krantz we pride ourselves in making decisions simple by clarifying your Values and assisting you in staying true to your principles.
Wealth Protection is the next layer of the pyramid, looking after the things we already have and Wealth Management concentrates on effectively & efficiently managing what we have been able to accumulate.
Wealth Creation is the layer that gets the most attention in the media because there are endless investments available. It is perceived to be fun and everyone wants to know the "secret" to wealth creation. Sometimes the obsession with wealth creation comes at a great cost of ignoring other critical layers necessary for Wealth Control.
To explain this concept we can use the famous Maslow's Hierarchy of Needs, which states that human beings have five basic needs, and until the first level has been satisfied you cannot move to the second level, and until the second level is satisfied you can't move to the third and so on.
The need for safety and shelter are secondary and first require the need for oxygen, food, & water to be fulfilled. So it is with the Wealth Control - Financial Planning Pyramid. Trying to build a solid foundation for wealth creation firstly requires clarification of the person's or couple's values followed by putting into place wealth protection strategies to underpin the wealth management strategies that follow.
All levels are required to be dealt with in order to form a structure capable of withstanding the financial challenges that may come your way.
By building upon each layer you will have the highest probability of achieving your goals for the reasons that are important to you. Now all that is left is to distribute your wealth to your loved ones in a tax effective & fair manner – Wealth Succession.
Andrew Krantz FCIS (F)CPA (FPS) CFP CTA
For more information:
SMSF Specialist Advisor
Black & Krantz
Click on Pyramid Section for more info
Make a simple decision – Contact us today. We look forward to meeting with you soon
'Count' and 'Count Wealth Accountants' are trading names of Count Financial Limited ABN 19 001 974 625, AFSL No. 227232, a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited.