Practices use super to fast-track succession solutions
Several financial planning practices have taken advantage of the $1 million superannuation window to fast-track their succession planning, according to Sydney-based wealth management business Ipac Securities.
Five practices, with collectively more than $800 million in funds under advice, joined Ipac’s Equity Partner program in the first half of this year. Ipac chief executive Peeyush Gupta said his team’s experience and ability to act quickly ensured these practices made the June 30 deadline for investing up to $1 million in post-tax contributions in superannuation before the ceiling reduced to $150,000 per year.
“Like their clients, principals could take advantage of the $1 million window for superannuation contributions. The biggest asset for many was their business.”
Since launching its equity program in 2001, IPAC has provided succession plans to more than 30 practices across five states, which collectively have more than $3.2 billion in funds under advice. The newest among these are BMRI Financial Services in Adelaide, Strategic Wealth Solutions in Parramatta, Total Super Solutions in Melbourne, LifeFX in Brisbane and Capital Income in Canberra.
At a recent media presentation, Gupta stressed the importance of planning for succession rather than waiting until something, such as ill health, triggered it.
“Many advisers these days don’t work on their practice as much as in their practice. They often don’t think about succession issues until they are confronted by them. And, by that stage, their options are limited.”
He said IPAC tailors succession plans to suit individual business needs, helping principals to grow, run and, when the time is right, exit their businesses.
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
