Well-educated, high-income professionals might seem to have a clear path to retirement. That’s not always the case though. For many clients, continuous spending can exceed income, which can put their financial future in jeopardy. This is where Troy A. Collins, ADFP, steps in. He has restructured his business around clients who are great at what they do — but need help leveraging their income to maintain their lifestyle and meet their goals. 

“My ideal client is an executive who excels at business but not managing their personal finances to their best advantage,” said Collins, a 22-year MDRT member from Toowong, Queensland, Australia.

One of Collins’ clients who fits this description is a barrister who was earning a $1 million salary and spending $1.1 million a year. “We discovered that he had no plan — he just lived week to week,” Collins said. “We engaged him in the process of understanding ultimately what’s important to him. It doesn’t matter what you earn; it matters what you do with it.” 

To help new clients make better use of their income, Collins zeroes in on what he calls the three-way struggle: tax, debt and lifestyle. He helps clients legally minimize taxes, pay down debts more quickly and manage lifestyle expenditures.

While clients are enthusiastic about lowering their tax bill and mortgage payments, those feelings may not carry over to reducing lifestyle spending. Collins positions these conversations around his clients’ long-term goals. He doesn’t question or judge when clients choose a lavish vacation home or membership at a posh country club. It becomes about the choices they make to control their own future.

“I talk about understanding step-by-step their desired outcome and how it can be achieved by developing a plan with a consistent process,” Collins said. “I tell clients that we need to get clear what they need day to day, week to week for discretionary expenditures.”

These discussions give clients a sense of control over their spending, but Collins makes sure they understand the consequences of their choices. “The ball is in their court,” he said. “They can decide whether they’re willing to work longer or live on less when it comes to their long-term financial independence.”

In another example, Collins met with a married couple with two young children. They were busy, high-earning executives who weren’t making any progress on their financial goals. “Basically, they were going nowhere financially,” Collins said. “They were very frustrated and stressed with limited lifestyle choices. Within a short period, we addressed their issues, which included paying too much in taxes and carrying a large amount of debt. They also didn’t have a financial plan or a structure to manage their cash flow. As a result of restructuring their finances — not limiting their current lifestyle but enhancing it — they were able to achieve in a few short years the opportunity to do what they were previously unable to do.”

Their goals included a two-month family vacation to Europe and upgrading their home. “It was a very successful outcome for them. And their stress levels were reduced,” Collins said.

Collins positions himself as a chief financial officer who manages his clients’ finances on an ongoing basis. Though he’s managing their household financials, he approaches them like a business would.

“We manage their personal profit and loss statement and balance sheet to maximize outcomes for them and advise them on strategic outcomes,” Collins explained. “I say to clients, ‘Let’s start with the end in mind and understand what financial independence looks like to you.’ We’re not product focused; we’re definitely strategic.

“The products are the tools. When it comes to investments, insurance, estate planning and so forth, they should be the last part of the process for what advice we’re delivering. We’re advising on strategic outcomes and delivering a future lifestyle. In fact, I’ll say to clients, ‘If your investments underperform but you still achieve your lifestyle choices, will you be happy?’ And 100% of the time they say yes.”

Collins operates on a fee-for-service basis, putting him in equal standing with other professionals his clients are used to paying fees to. As his clients’ CFO, his fees include monitoring their plan monthly to ensure they stay on track. “We have a collaborative relationship with clients,” Collins said. He also brings in other professionals as needed who can assist clients, such as accountants, attorneys and mortgage brokers.

“Clients feel like there is so much more control now of their financial affairs,” Collins said. “They understand the future and the successes that are coming to them, and they are very satisfied with those outcomes.”

Triathletes unite

Shared interests can strengthen the relationship between advisors and clients. Like many of his clients, Collins participates in triathlons. As a 20-year triathlete, Collins has won state and national age group titles in various distances and regularly competes in world championship events. “I understand the passion people have for the sport of triathlons and the time commitment required,” Collins said. “This group of people have personal health and fitness goals that result in less time to manage their financial positions.”

Contact: Troy Collins troy@collinsfinancialgroup.com.au

Find video interviews featuring Troy Collins at mdrt.org.