In 1968, US senator Robert Kennedy stated that GDP “measures everything… except that which makes life worthwhile.” As accountants our focus is often on measuring things – taxable income, profit, cash flow, assets and liabilities. These things are of course important but there are many valuable things we can’t measure.
I recently participated in a workshop on the topic of asset protection. We were asked to list down our assets. We would normally expect this to include things like the value of a business, our investment portfolio, superannuation and real estate. However, there are some far more valuable assets that we all have: Our health, our families, our relationships and our capacity to work; things that are not easily measured but make life worthwhile.
And so if you are serious about considering the topic of asset protection, you should consider what you are doing to protect (and enhance the value of) these assets. Are you eating well, exercising and spending time with family, friends and relationships?
There are also some practical things that Saward Dawson can assist you with in protecting these most valuable assets and your other assets including:
- Reviewing whether you have adequate life, trauma or income protection insurance so that your family is adequately provided for
- Developing a financial strategy that will enable you to adequately provide the needs of your family and to enable you to enjoy retirement
- Ensuring that you have the correct business structure in place so that your personal assets are isolated from your business assets
- Ensuring that your banking facilities are structured correctly to minimise the exposure of your personal assets
- Maintaining budgets and suitable forward looking indicators in your business so that you are warned of troubles ahead.
As you prepare for the festive season it is a good time to stop and consider the things of real value and whether they are adequately protected. Saward Dawson may not be able to assist with an exercise program that will protect and enhance your health but we can assist in a review of your affairs. So why not make a time to meet with one of our team in the New Year to review your asset protection strategies.