Executive financial planning

Facing the new financial future

Thanks to new laws regarding who can provide financial advice, Human Resources (HR) Managers of large and successful firms will be unable to provide any meaningful financial direction without risk of overstepping the boundaries. Even key benefit packages such as KiwiSaver will be communicated by form rather than with personal and thoughtful consideration.

Bradley Nuttall is a resource to top firms to work in this new environment and ensure their key executives receive advice which enhances their value and productivity to the firm.

Current problems facing corporations and HR managers

• Lost productivity: Executives spend an average of 1 to 3 hours weekly tinkering with their finances while at work. This includes managing their finances, watching shares and reviewing their KiwiSaver scheme.
• Legal risk: Human Resource Directors that consult executives with executive benefits typically provide generalized advice and are unwilling (appropriately so) to go out on a limb and risk providing specific, personalized advice. If they did so, they could potentially violate new securities laws and be subject to potential lawsuits.

• Compliance problems: How are executives in publically traded firms investing and divesting of their shares and options? Is it questionable or appropriate? What if a firm is about to go public, how should executives think about their potential benefits?

• Benefits confusion: Executives are not maximizing their benefits and are confused about how to best utilise benefits such as KiwiSaver.

• Poor executive retention: Executives sometimes leave a business for more lucrative offers without completely valuing their current employer’s benefits. They may see foreign job offers as key to securing their financial future, because they haven’t yet adequately structured their finances nor are they currently on track to reach their goals. Thus offshore job offers are sometimes seen as a fast track to retirement.

What’s in it for me (the employer)?

There are several compelling reasons a successful corporation would want to offer financial planning services to its executives:

• Retention and attraction of key individuals
• Better job performance
• Protection against financial recklessness
• Mitigation of conflicts
• Benefit maximisation and fewer HR queries

Retention and attraction of key individuals.

Bradley Nuttall will ensure that executives are on track to reach their financial goals, are maximising current benefits and protecting themselves against potential risks. Executives that are on track towards reaching and attaining their goals and avoid expensive financial losses will find offers from other potential employers less attractive. Bradley Nuttall will also be there to help executives analyse how all the compensation elements assist them in achieving their financial goals; this encourages executives to fully consider the risks involved in changing employers.

Protection against financial and legal recklessness
Executives receive an in-depth education on the principles of financial planning and well as relevant securities and tax laws where relevant. Executives working with Bradley Nuttall are less likely to engage in questionable behaviour whether intentional or negligent which could harm both themselves and their employer. Perhaps more importantly, executives are more likely to make responsible, thoughtful personal financial decisions that, in turn, should provide less incentive to engage in any questionable pattern of behaviour.

Better job performance
Employees spend an average of 1 to 3 hours weekly tinkering with their finances while at work. Furthermore, executives who are not properly advised are likely to spend disproportionate amounts of time and energy inefficiently maintaining their personal finances. In contrast, executives who have the benefit of working with a financial planner are likely to delegate many of their financial responsibilities to the planner. This creates a more orderly, predictable financial environment for themselves, thereby leading to greater time efficiencies and fewer distractions in the context of their day-to-day corporate responsibilities.

Mitigation of conflicts
Conflicts of interest can and will arise between a company and its executives. Some examples of these situations include salary negotiation, executive option exercises or purchases and sales of company shares. While company-sponsored financial planning is typically financed by the company, the planner generally assumes a duty of loyalty to the individual executive. Therefore, the company can be assured that its executives will have their own personal advocates who can provide independent, objective advice and perspective to the executives.

Benefit maximization and fewer human resource queries
Providing company-sponsored financial planning requires a relatively small financial investment. Yet, the company's return on that small investment can be quite substantial.  In addition to achieving all of the goals enumerated above, the company also is able to maximise the value of all of its other benefit plans by providing executives the education necessary to understand and fully utilize them. Because executives better understand and appreciate your benefits and compensation programs, you can expect fewer inquiries from them to your human resource and benefits departments.

Other related benefits to the business

• Reduced executive stress.
• Financial clarity for key executives.
• Enhancement of corporate culture
• Informative employee seminars and workshops

Finally, Bradley Nuttall helps our clients to live in alignment with personal values and find greater satisfaction with their use of time.

Proposed services

Executives receive our highest service proposition, required for successful individuals leading busy and prosperous lives.

Step 1: Comprehensive data collection

Step 2: Preliminary plan review and presentation of data

Step 3: Financial plan and recommendations

An in-depth analysis, including strategies and recommendations in each planning area combined with extensive consultations with the client to review the plan and recommendations.

Step 4: Implementation

Regular meetings help the client implement each key recommendation, working off an implementation plan with clear deadlines and responsibilities. We assist with all implementation not requiring legal advice.

Step 5: Monitoring, on-going consultation and updates

Planning areas covered include:

• Investment plan review
• Personal debt management
• Retirement and KiwiSaver planning
• Estate, charity and gift planning
• Personal risk management
• Executive compensation and benefits planning
• Single share and concentrated portfolio unwinding
• Property risk
• Income tax planning and preparation
• Education funding
• Share option planning (if a publically traded firm)

Fees

Fees for this service depend on the services being offered but typically include an initial fee for each new executive and on-going maintenance fee.