ProSolution

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14/03/2023

Why don't my accountant and financial advisor work together?

Ensuring your accountant collaborates with your financial advisor is important, as they will be able to discuss and workshop ideas to improve your financial position. However, in my 20+ years of experience, this collaboration almost never occurs, unless they work in the same firm. Theoretically, there shouldn’t be any impediments to these two professionals working together. Practically, it doesn’t happen and depending on the complexity of your situation, it could be costing you. Accountants and financial planners are different beasts It is a common misconception that accounting and financial planning roles are similar. They are not. The roles are about as similar as dentist and doctors (general practitioners). Apart from knowledge and experience which can be vastly different, the next biggest difference is that accountants spend most of their time focusing on what happened over the past 12 months and sometimes on what might happen over the next 12 months. However, financial advisors are more focused on what will happen over the next 10+ years i.e., the medium to long term. This distinction is very important because the focus is habitual. That is, it’s not a natural tendency for accountants to think about what a client’s financial position might be 5 years from now. The truth is both approaches are complimentary. People would greatly benefit from both an accountants and financial advisors’ perspective. Be careful asking your accountant for financial advice It is natural to ask your accountant for financial advice. But there are a few important limitations to consider. Firstly, their advice will be shaped by their own experiences, which are likely to be limited, as they are not financial advisors. Accountants will often advise their clients to do what they have done for themselves such as simplistic advice like “if you are going to invest in shares, buy the big banks and miners”. But what might be appropriate for them won’t necessarily be appropriate for all their clients. Secondly, to give financial advice, you must be authorised under an Australian Financial Services license. Most accountants are not. Similarly, to provide tax advice you must be a Registered Tax Agent which most financial advisors are not. Why don’t financial advisors and accountants typically work well together? Of course, the reasons may be different in every situation, but I discuss some of the common reasons that I have observed over the past two decades that impede these two professionals from working together efficiently and effectively. Different ways of doing things We recently prepared some advice for a financial planning client that uses an external accountant. We recommended they structure their investment in a simple discretionary trust. The client took this advice to their accountant who recommended that they draft a customised trust at a much greater cost. We felt that this recommendation overcomplicated matters and gave rise to unnecessary costs. Consequently, the client structured the investment in personal names to avoid this complexity. The problem is that this structure provides less taxation flexibility and will probably result in a higher taxation liability in years to come. Unfortunately, the client is the meat in the sandwich. But of course, the clients not going to completely disregard their accountant’s advice. If this client was also a tax client (i.e., ProSolution acted as their financial planning and taxation advisors), what would have happened is that both our financial advisor and accountant would have vicariously debated which structure was best for the client having regard to all financial planning and taxation matters. I’m confident that the family trust recommendation would have been deemed optim Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
11/04/2023

Ep 32: Are holiday homes tax-effective investments?

Send us Fan Mail This week, Mena and Stuart discuss the tax consequences of renting out your holiday home including: How the ATO is targeting these arrangementsRecording keeping and proof that the property is available for rentImportance of charging market level rentHow to apportion tax-deductible expensesIf you would like us to cover a particular topic, please email us at 'advice at prosolution dot come dot au'. If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps us reach more incredible listeners like you. Thank you for being a part of the journey! Click here to subscribe to our weekly email. SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here. Work with Mena & Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website. Follow us: Stuart: Twitter/X and LinkedIn. Mena: LinkedIn IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
12/02/2018

A typical investment strategy life cycle

What is more important to do first? Contribute into super or buy an investment property? How will investing in property help you fund retirement? What can you do (invest in) to minimise the risk of running out of money in retirement? These questions all relate to your investment strategy. Most of these questions can be answered by acquiring an understanding of a typical investment strategy life cycle. Watch the 8 minute video below and I will take you through the order in which many successful investors build wealth for a comfortable retirement. https://www.prosolution.com.au/typical-investment-strategy-life-cycle/ Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
14/11/2018

How do you change your investment strategy to suit your borrowing capacity?

With the tightening in credit and the reduction in borrowing power, many investors capacity to invest has been adversely impacted. For example, an investor who planned to invest in two properties worth say $750k each might find that when it comes time to purchasing the second investment property, they can only afford to spend say $400k due to a contraction in borrowing capacity. This begs the question, what do they do? As I see it, they have four possible options: Reduce the budget for the next investmentInvest in a regional or outer-suburb - so you can still get a house for exampleConsider other investments such as a regular gearing strategy into a portfolio of low-cost index funds.Wait to see if things change - will credit loosen up? Will your financial position strengthen? Will expenses (school fees) disappear? I discuss these options in the below video and explain what approach I think is best. The theme of my message is twofold: You must NEVER compromise on the quality of your investments. Only quality assets will produce quality returns. Typically, there’s more than one strategy to build wealth. A quality share portfolio is better than a sub-quality investment property. An astute investment strategy should be robust and flexibly enough to navigate inevitable market challenges such as a tight credit market. Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
30/03/2021

What is a holistic accountant? What value do they provide? When to use one.

The word ‘holistic’ is defined by Oxford Languages as “characterised by the belief that the parts of something are intimately interconnected and explicable only by reference to the whole.” This definition implies what a holistic accountant is positioned to offer you the most value. But not all accountants are able to adopt a holistic approach. This blog sets out the key considerations to help you assess whether you would benefit from engaging a holistic accountant. Taxation and investing are inextricably intertwined Taxation is typically your biggest lifetime expense. Therefore, it makes sense that you should take steps to minimise it. This includes ensuring your investments are tax-effective. The less tax you pay, the more investment returns you keep. The more you keep, the less assets you need to fund retirement. Take superannuation as an example. It’s a wonderful investment vehicle because its concessionally taxed at a rate of 15% for income and 10% for capital gains. However, in retirement (pension), all investment income and gains are tax free (if your account balance is less than $1.7 million after 1 July 2021). Therefore, it is natural for your accountant to recommend contributing into super. But if your super is invested poorly and doesn’t generate any returns, the rate of tax is inconsequential. This demonstrates how intertwined tax and investing is. In this situation, you need an accountant that not only recognises the tax benefits of super, but that can also direct you how to maximise your super investment returns. Of course, there are many examples of how tax and investing are inextricably intertwined, and this is only one. You trust your accountant According to research, accountants are rated as the most trusted financial professionals. The main reason for this is that they are independent. Typically, they have nothing to sell to you, other than their advice. Although, 15 to 20 years ago some accountants sold “tax-effective” agribusiness products to their clients. Unfortunately, everyone that invested lost thousands. Most accounting bodies have since banned accountants from selling products to their clients. Back to the topic of independence. Being independent means accountants don’t have any conflicts of interest. Their only interest is what is best for you. This situation has resulted in accountants being the most trusted financial professionals. Your accountant knows a lot about you and your financial position. Together with the trust you have in them, it puts them in a great position to help you. What is a holistic accountant? A holistic accountant is someone that helps you maximise your wealth on an after-tax basis. This is more than just saving tax, which is how people have traditionally thought about accountants. It recognises that no amount of tax structuring can compensate for poor quality investment or a bad strategy. The most amount of value is harnessed when the two factors are optimised. That is, when a client has high quality investments that are structured tax-effectively. The value created through optimising both is greater than the sum of the parts. But not all accountants are able to adopt a holistic approach There are two hurdles that accountants will face when trying to adopt a holistic approach. The first is a lack of skill and experience. Its challenging for one person to keep on top of both tax and investing. They don’t necessarily have to know everything – just enough to identify any issues and opportunities. If Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
01/08/2023

Which industry super fund do I recommend? Review of returns for 2022/23

Read full blog here. Do you ever ponder the enigma of superannuation returns and how they're impacted by elements such as increasing interest rates and shifting work dynamics? We promise you an enlightening exploration that would shed light on these queries. We chat about the performance of different industry funds during the 2022-23 financial year, despite the tumultuous times, and how they managed to finish above average. We pull back the curtain on the top 8 industry funds, pinpointing the factors that have influenced their performance, particularly the thorny issue of unlisted asset valuation. Intrigued about where you should be investing your money if you're a long-term player with a high-risk appetite? We tackle this head-on, highlighting the importance of share markets. We also take a critical look at the fees charged by industry super funds in comparison to client portfolios, offering insights on the potential advantages of making a switch. And as a cherry on top, we present a compelling reason why UniSuper may just be the best industry super fund for you. Tune in for a discursive journey into the intricate world of superannuation and industry funds. Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
06/08/2024

Ep 94: How to best protect your interests in the event of a relationship breakdown

Send us Fan Mail In this episode, Stuart and Mena delve into the crucial topic of protecting your interests in the event of a relationship breakdown, especially when owning a business or investment entity. They discuss proactive steps to take when entering a new serious relationship, including setting up a Binding Financial Agreement (BFA) with the help of a reputable family lawyer, structuring business affairs thoughtfully, and ensuring both partners have independent financial, legal, and accounting advice to avoid conflicts of interest. For those already in business, Stuart and Mena outline what to expect during a relationship breakdown. They emphasize the importance of a business valuation, particularly if it involves personal goodwill or exertion, and highlight the need to account for taxes in financial splits. They also discuss tax rollovers to guide asset division effectively. The conversation touches on the emotional toll of a relationship breakdown and the necessity of planning who can manage business affairs during such times. Additionally, they recommend considering buy/sell agreements to stipulate business operations post-breakdown if both partners are involved. Tune in to gain valuable insights and practical advice on safeguarding your business and financial interests in the event of a relationship breakdown, ensuring you're prepared for any eventuality. If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps us reach more incredible listeners like you. Thank you for being a part of the journey! Click here to subscribe to our weekly email. SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here. Work with Mena & Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website. Follow us: Stuart: Twitter/X and LinkedIn. Mena: LinkedIn IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
21/10/2025

Ep 150: Conducting a health check of your business

Send us Fan Mail In this episode, Stuart and Mena explore why every business owner should conduct regular health checks, not just when things go wrong, but as a proactive strategy for long-term success. They break the health check process into six core areas, starting with financial health, where Mena explains how to assess profitability, cash flow strength, and balance sheet resilience. Stuart then examines client and market health, highlighting the importance of avoiding overreliance on key clients, staying relevant in your market, and keeping your lead pipeline strong. Mena dives into operational health, discussing the need for scalable systems, up-to-date technology, and robust risk management, including cybersecurity. Stuart covers people and culture, identifying key person risk, the value of staff engagement, and building capability for the future. Mena also unpacks strategic health, asking whether your vision is still clear, your competitive edge is still relevant, and whether you're actually executing on your strategy. Finally, Stuart turns the spotlight on the owner’s health: is the business still serving your lifestyle, delivering a return on effort, and capable of running without you? This episode is a practical, thought-provoking guide for stepping back from the day-to-day and making sure your business is truly fit for the future. If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps us reach more incredible listeners like you. Thank you for being a part of the journey! Click here to subscribe to our weekly email. SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here. Work with Mena & Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website. Follow us: Stuart: Twitter/X and LinkedIn. Mena: LinkedIn IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
03/01/2023

Best of 2022: Consistency is the key to building wealth

This was the second most popular podcast episode in 2022. My aim for this topic was to educate investors about the fact that investing a little bit each week, fortnight or month is much better than investing on an ad hoc basis. You may have seen the idea that improving something by 1% each day for one year results in a 37x improvement – small, regular improvements create massive results over the long run. The topic obviously resonated with people. I hope you enjoy it and here’s a link to the blog in case you want to read it (instead of listing to the podcast). Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.
19/05/2020

Will 'working from home' change how we invest in property?

If many employees continue to work from home, then perhaps demand for property in close proximity to capital city CBD’s will fall. And conversely, perhaps demand for property in regional centres that are well serviced by pubic transport (trains) will increase. This encourages us to consider whether the work-from-home movement will change the way we invest in property. Covid forced us to work from home Most employees have been required to work from home over the past few months due to the COVID shutdown. Of course, for most businesses, mobilising their entire workforce at short notice created a number of teething issues. But most businesses have adjusted to the ‘new normal’. They have resolved most operational issues and staff, in the main, are enjoying the flexibility that working from home provides. Of course, this is not true for all businesses and employees. Working from home suits some roles, employees and industries better than others. Some of the benefits of working from home include improved productivity due to fewer distractions. The elimination of travel time means employees can spend more time with family and/or complete more work. Therefore, it seems to provide benefits for both the employer and the employee. In fact, Twitter is the first global businesses to confirm it will now allow employees to work from home permanently. Senior public service leaders in Canberra and many states and territories around Australia are also contemplating more permanent work-from-home policies too. But it has its downsides Of course, it’s not all positive. There are some downsides to working from home. These include not having a suitable workspace and limited face-to-face contact with clients and co-workers. Research conducted by Dutch social psychologist, Geert Hofstede highlighted that human connection and relationships in the workplace are big contributors to job satisfaction. We have all come across people that dislike their job/employer but stay because they enjoy the people they work with. The reverse is also true i.e. people have left a role because they disliked the people, they worked with even though they make have loved the job. Impact on demand resulting from working from home Of course, if more employees work from home permanently – either on a full-time or part-time basis, demand for office space will fall, which will likely have negative consequences for commercial real estate. But what about the residential property market? If people choose to work from home, then they no longer have to commute to their workplace. This gives them more options in terms of where to buy a home. For example, a greater share of the population may be more attracted to regional cities and towns, particularly as housing is more affordable in these locations. If that is the case, demand for housing in capital cities might fall, creating downward pressure on prices. There are many important factors that determine where we want to live It is important to remind ourselves that our choice of where to live is influenced by many factors, and proximity to one’s workplace is only one of those factors. Perhaps the most compelling consideration for families with children is education. Living in a regional town might otherwise be attractive but if that means kids have a 1.5 hour each-way commute to school, it’s probably not going to work. Proximity to family is also a persuasive factor when determining your home’s location. This is particularly the case if you need to look after your unwell parent Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here My new book, Wealth by Design, is out now: Buy online or in bookstores. The ebook is available now, audiobook coming soon. Got a question for the podcast? Email us at questions@investopoly.com.au Interested in working with our team? Discover how we can work together Subscribe to my weekly blog: Stay connected here Important This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.

ProSolution Private Office brings together two shows for people who want to build wealth and build a business with intention. Investopoly is a weekly podcast on property, shares, superannuation, tax and financial strategy, hosted by financial adviser and mortgage broker Stuart Wemyss. Each episode works through a specific rule or principle for building wealth methodically, backed by data rather than opinion. Business by Design explores what it takes to build a professional services firm on purpose rather than by accident, drawing on Stuart and Mena Abraham's experience running ProSolution Private Office. Episodes cover strategy, culture, profit share, client experience and the operational decisions that compound over time. Together, these shows share a single premise: good outcomes, whether personal or professional, come from clear thinking and deliberate design, not luck.

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ProSolution

Top Shows

Why don't my accountant and financial advisor work together?

Ep 32: Are holiday homes tax-effective investments?

A typical investment strategy life cycle

How do you change your investment strategy to suit your borrowing capacity?

What is a holistic accountant? What value do they provide? When to use one.

Which industry super fund do I recommend? Review of returns for 2022/23

Ep 94: How to best protect your interests in the event of a relationship breakdown

Ep 150: Conducting a health check of your business

Best of 2022: Consistency is the key to building wealth

Will 'working from home' change how we invest in property?

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