The two largest expenses you will ever have….

and you will want to make one even larger.

In your lifetime you will encounter many, many expenses. Doctors and dentists, cars and houses, repairs and replacements but there are two expenses that dwarf them all:
Tax and Retirement.

Retirement

Think about it, when you retire you stop working, that doesn’t mean your expenses stop rolling in. How much will you really need in retirement?
The average life expectancy for Australian males is approximately 80 years of age and 84 for females.

So when did you say you wanted to retire? Have you even thought about it?

It doesn’t matter how old or young you are its time to start taking your retirement seriously. Who knows, if you get quality advice now you may even be able to retire early! Or follow your passion and do what you love without having to worry about your pay packet.

Along the way you’ll have another HUGE expense…

Tax

This is the one you do NOT want to get bigger. Legally reducing tax is one of the best strategies for improving your financial position. Which, in-turn can help out with that retirement fund.

If you currently pay in tax $20,000 (which is the approximate amount of total taxes you would pay if you earned $82,500 in this financial year) and you speak to a skilled tax accountant with some quality tax planning, then depending on your circumstances they could help save you $1,100 after their fees. If this happened each year, and $1,100 was invested each year at 6.5% p.a., it would return more than $100,000 over 30 years, and that’s when you start from scratch (i.e. zero savings). That’s an extra $100,000 for doing NOTHING.

So how long can you afford to wait to get this sorted?

Now is a good time of year to address your tax planning. At APL accountants we offer a quality tax planning service.

Call us on 07 3488 0131 if you don’t currently receive our tax planning service
Or email us on admin@aplaccountants.com.au

 

Bottom of the pack – Are Vets in line to lose their ‘Top Dog’ status?

Zack is a dog who is a couch potato and has an unusual life experience. His owners who were once exciting vets have now become boring accountants. They used to bring him into the exciting vet practice every day, now they bring him into a boring accounting office every day. This gives him a unique dog’s eye view on both professions.

Pictured above taking a ‘Power Nap’ at APL Headoffice!

I don’t know about you, but I really think being at the bottom of the pack sucks! Mainly because you are the last one to get fed and nobody gives you any treats at the dinner table. How I would love to have a life of food abundance…….

Ok, so this is going to sound strange coming from an underdog, but I am going to assess YOUR top dog status in the veterinary industry because I see and hear so much at APL Headoffice.

Personally I really like the fact that my healthcare is controlled by a Veterinarian, and I would like it to remain like this for the rest of my living years. But the reality does in fact exist that the control of the profession can shift very rapidly to other stakeholders!

Let me explain by way of example:
Just up the road from APL HQ there is an optometrist, and a very competent one at that – his name is Alan. He is one of the few independent optometrists left in the country. A few years ago, my dad had a foreign body stuck in his eye and he went to the local hospital to have it removed. It was dealt with by a junior doctor using some very simple equipment and required a 3 hour wait before he was seen.

Only later did we discover that Alan had superior equipment, would see an emergency immediately and is the local ‘go to’ guy for tradies having the same problem. The service he offers and his technical skills go well beyond testing eyes and selling frames. So why did we not think of his business when the time arose? The answer lies in public perception of what optometrists can do and the way they are marketed. Essentially the public sees them as a seller of trendy fashion items (eyeglasses) and the service of the eye test as an optional extra that is thrown in when you buy frames. Logic however dictates that it should be the other way around, but remember the consumer is very pliable in the hands of the advertiser.

Some time ago, smart business people and advertisers became aware that they could make a lot of money by mass marketing eyeglasses as a fashion item. The most obvious place to deploy such a strategy would be to use the very place that prescribes the eye glasses – the optometrist practice.

Optometrists, like vets are skilled professionals without any business training, so to them, the ability of having someone else market their goods initially seemed very attractive – they did not see the storm coming. Over the years, the profession consolidated and ownership was passed across to non-optometrists. Non-optometrists cared more about the product and very little about the skill and service, and therefore the industry evolved into what it is today:
The highly skilled professional earning a base salary, working for a large corporation interested in selling fashion. In current times, an optometrist can earn less than an unskilled worker.

Is it just me? As a Beagle, I have a nose for such things, but this story is starting to sound familiar.

What happens to the veterinary profession in the next 10 years rests on YOU the veterinary surgeon! As strange as it may sound YOU HAVE AN ETHICAL OBLIGATION TO KEEP THE PROFESSION PROFITABLE AND TAKE OWNERSHIP OF THE BUSINESS SIDE OF IT.

Let me explain why this is an ethical obligation: The veterinary profession is clearly in the sights of non-veterinarians. Non-veterinarians will put more emphasis on retail and simple service offerings because they have less interest in clinical work, and of course, on a mass scale it is far easier to offer the McDonalds burger instead of the Gourmet meal. To me, as one of your patients, this does not bode well! My health deserves the Gourmet treatment thank you very much!

Just like the optometrists, if veterinarians remain focused soley on their clinical work and initially find relief in allowing other parties to take control of the ‘business,’ the profession could rapidly move towards the simple service offerings and retail of pet products becoming the public focus. The end result – poorly paid skilled professionals, well paid non-clinical executives and a lower standard of care for pets like me.

But remember, YOU are currently in control of your profession (leaders of the pack) and what happens in the future will be the result of whether you bury your head in the sand or rise to the challenge – It’s time to get business savy and home in on those business skills!

 

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.In particular, please note that ‘Zack’ is a dog and does not have opposable thumbs so has to type with his nose.