Dimensions of Wealth

At Stephan Independent Advisory our goal is to help you understand your family’s finances in a clearer manner. We use a logical, straightforward framework to help you demystify your wealth, and understand how you can use it to achieve your financial goals.

This framework describes the delineation of your wealth based on its intended use, and helps you separate the essential, non-essential and aspirational elements of your finances.

These quadrants make up your Dimensions of Wealth framework, and enable us to understand and allocate your wealth appropriately, in ways that are designed to meet your financial goals.

Business wealth

This is wealth that’s acquired by your family through business dealings. It might be through annual income, a family business, or from business ventures of which you have passive ownership. This is traditionally where most of your wealth is generated.

Core wealth

Core wealth is the bulk of your wealth that’s derived from the income generated by yourself or your family business. This quadrant covers the funds required to live comfortably, and to be spent on non-negotiable items and necessities like food, health care, education, and housing expenses. We will use our liabilities-driven investment framework to help you earmark the correct level of capital for this quadrant.

Lifestyle wealth

This is wealth that’s accumulated to maintain the lifestyle you’re accustomed to. Lifestyle wealth is fed from your core wealth, and includes assets such as your home, car, investment in a holiday home, or an art collection.

Venture wealth

Once your critical, non-negotiable objectives are taken care of within your core wealth quadrant, and the priorities and cost of your lifestyle are accounted for, then surplus funds may be directed elsewhere again. This is your venture wealth quadrant, the high rish speculation ventures that seek an above average return, while taking on greater levels of risk. However, it’s important to note that the greater level of return on these investments can in some instances come at the cost of illiquidity, a lack of transparency, reduced diversity, and uncertainty of the outcome—so speculating in this way is only appropriate if all your other needs are conservatively met.

As a business we typically don’t advise on speculative investments, as we believe that the majority of a family’s capital should be invested in a responsible way. However, we do understand your inclination to want to take on more specific projects that may have some special meaning or significance, and in these cases we’d be happy to discuss the situation with you.

Understanding your wealth

Our Dimensions of Wealth is the framework we use to apply to your finances. It’s a logical, no-nonsense approach to how you accumulate and preserve wealth, how you spend your money, and how you can generate further income through investments.

So, while there may be some complexity in your personal financial structure and underlying investment selections, understanding the nature of your wealth doesn’t need to be confusing.

Our Dimensions of Wealth framework helps you to look at your finances in a structured way, enabling smarter decisions for your family’s future.

  • Enjoy the fruits of working life Joe & James were able to provide me with the impetus to take the next step into retirement which could have been delayed without quality financial advice. Dr. Kevin Adams Self Funded Retiree
  • Professional practice to be admired Joe & James' professional practice is to be admired. They are always there for his clients when needed. They freely pass on their expert knowledge without hard product selling techniques. Dr. Elspeth Mckay Associate Professor
  • Personal advice for complex lives Stephan Independent Advisory took the time to understand our situation & tailor their advice & solutions to our specific needs which, being a business owner, can be quite complex. Paul Marsh - Principal P2 Group - Business Owner
  • Family centered advice We have moved our investments from being a private client with a major bank to Stephan Independent Advisory in 2018. Since this move, we have been surprised at the depth of understanding encountered from Joe and James about our future plans and their ability to comprehend exactly what we wish to achieve. Mr Graham and Mrs Judith McKnight Self Funded Retirees
  • Values aligning with our own Clear, timely and direct responses in all areas of communications are outstanding. Meetings are planned and run efficiently to deliver on all our expectations. The firm’s values align to our own so that trust is readily established. Mr John and Dr Kim Watty Self Funded Retirees

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