When Change Comes Before the Crisis – What MYOB’s Transformation Teaches Us About Retirement

It’s not often that an accounting story gets my attention – but this one did.

Last week, our company’s management went around the country handing out annual staff awards. One segment featured a guest speaker, the CEO of one of our corporate partners. He shared lessons from leading MYOB’s transformation, during his time the accounting software company that once dominated Australia and New Zealand.

Now, if you’re an accountant, you’ll know where this is going. (#canrelate)

Back in the pre-cloud days, MYOB was thriving – hugely profitable and comfortably ahead of the pack. Then along came Xero, the new kid selling “beautiful accounting” and software that lived entirely online. The tide was turning, and the writing was on the wall.

So what did MYOB do? They decided to reinvent themselves before they had to. The CEO said something that stuck with me:

“The company wasn’t in crisis – it was still very profitable – but we knew we had to change.”

That line hit me.

He explained how the team tore down old systems, re-engineered their model, restructured the organisation, and re-trained people for the future. It wasn’t easy – there were doubters, delays, and plenty of nostalgic sighs – but the company survived, adapted, and even grew. Today, it’s still profitable, even with Xero sharing the stage.

And that’s when I realised: MYOB’s story is a retirement lesson in disguise.

Most of us only act when crisis hits – the health scare, the job change, the market dip. But like MYOB, maybe the best time to re-think our future is when things are still good. When we’re healthy, earning well, feeling steady. Because by the time the storm arrives, our options narrow.

So this weekend, maybe ask yourself:
If your “life business” is doing fine – health, finances, social life ticking along – what’s the one area you could future-proof before the writing appears on the wall?

Because as MYOB proved, success today doesn’t guarantee relevance tomorrow. And the only thing worse than change is waiting until you have no choice.

Your turn: 
Have you made a change in your life recently before it was urgent – or are you waiting for a nudge from the universe (or your doctor, or your accountant)?

👉 Hit reply and share your thoughts – I’d love to hear what’s resonating with you.

☕ If today’s musing made you rethink what it means to stay ready, you can shout me a coffee on Ko-fi.

The Modern Investor's Toolkit – ETFs & More

Welcome back, savvy L-Plate Retirees! We've covered the classics – stocks, bonds, smarter cash management, and even real estate. Now, let's fast-forward to the modern era of investing with Exchange-Traded Products (ETPs). Think of these as the Swiss Army knives of the investment world – versatile, accessible, and incredibly useful. The most popular of these are Exchange-Traded Funds (ETFs), which are excellent tools for building a diversified portfolio, a core principle from our Foundations of Investing.

So, what on earth is an ETF? Imagine a mutual fund that you can trade all day long on a stock exchange, just like a regular stock. That's an ETF in a nutshell! They're designed to track a specific index, sector, or asset class. For example, you can buy an ETF that tracks the S&P 500, giving you a tiny piece of 500 of the biggest US companies in one go. It's diversification on steroids, helping you manage risk as discussed in Risk and Return Fundamentals, by spreading your investments across many assets.

ETFs come in all shapes and sizes. Passive Index ETFs are the most common, simply mirroring a market index. These are often very low-cost, which aligns with smart financial planning from your Personal Financial Assessment. Then there are Smart Beta/Factor ETFs, which are a bit more clever, focusing on specific traits like 'value' or 'growth'. We're also seeing a rise in Active ETFs, where a manager is actively picking and choosing investments, but with the flexibility of an ETF structure.

But wait, there's more! You might also come across Exchange-Traded Notes (ETNs). These are a bit different. They're debt securities issued by a financial institution that promise to pay you the return of an index. The key difference? With an ETN, you don't own the underlying assets. You're essentially trusting the issuer to pay you back. This means you have to consider the credit risk of the issuer – if they go bust, you could lose your investment. This is a crucial aspect of risk assessment, reminding us that not all investments are created equal.

Why are ETFs so popular? They're generally low-cost, transparent (you can see what they hold), and you can buy and sell them throughout the day. They've made investing more accessible and affordable for everyone. So, if you're looking for a simple, flexible, and cost-effective way to build a diversified portfolio that aligns with your personal financial goals and risk tolerance, ETFs are a fantastic tool to have in your kit.

L-Plate Takeaways:

• ETFs are like tradable mutual funds: They offer diversification and track an index, but you can buy and sell them all day long, supporting the Foundations of Investing principle of diversification.

• Variety is the spice of life: ETFs come in many flavours – passive, active, smart beta, and more. There's an ETF for almost every investment strategy, allowing you to tailor to your risk tolerance.

• ETNs are different: They're debt instruments, not funds. You're exposed to the credit risk of the issuer, so be aware of who you're lending to! This highlights the importance of understanding risk.

• Low cost and transparent: ETFs are generally cheaper than traditional mutual funds and you can easily see what you're invested in, helping with your Personal Financial Assessment.

• A great starting point: For new investors, ETFs can be a fantastic way to build a diversified portfolio without having to pick individual stocks, making investing more accessible.