INTHEBLACK July 2022 - Magazine - Page 14
GET SMART
// R E V I E W S
REVIEWS DEREK PARKER
GOOD
READS
THE RULE OF 30
Fred Vettese
CLICK HERE
to explore the
CPA Library
PEOPLE, PLANET,
PROFIT.
Kit Oung
BUSINESS BEYOND
BORDERS
ECW Press
Business Expert
Press
Cynthia Dearin
This book proposes a different method
of looking at the issue of saving for
retirement, using a fictional young
couple and their neighbour, a retired
actuary, as a hypothetical case study.
After hearing about the couple’s
circumstances, the neighbour develops
“the rule of 30”, which essentially means
that retirement savings should be baked
into the other big costs of mortgage
and childcare, to which 30 per cent of
income should be allocated.
The mix should, however, be kept
flexible, because at certain stages of life,
mortgage and childcare costs will be
higher. When childcare costs go down,
more can be allocated to the mortgage
or to retirement. About five years from
retirement, when the mortgage is paid
off or very low, the full 30 per cent can
go into the nest egg.
The book provides a range of charts
and graphs to demonstrate all the
options. The idea is to leave people
with more spending discretion rather
than having to periodically pay a fixed
amount into a retirement fund, which
they might not always be able to afford.
Financial planners are likely to find
the model set out here to be useful,
interesting and easy to explain to
clients.
Kit Oung, an environment, social and
governance consultant, believes many
companies want to move towards a
sustainability model but do not know
how to do it. In People, Planet, Profit.,
he focuses on resource efficiency,
emphasising the need for involvement
from the senior levels of the company,
including the board. There needs to
be a plan that is circulated around the
organisation, with buy-in from every
level. Oung looks at ways to reconsider
product design, energy and water use,
recycling, waste management, supply
chains and process without undue
disruption, and points out that many
of these enhancements lead to definite
improvements in financial performance.
Oung says the reason many companies
fail is a lack of communication between
executives and technical experts, so
there needs to be a mechanism to ensure
information flows. New metrics, based on
resource effectiveness rather than output,
will be needed.
A key feature of the book is the detailed
case studies on how different companies
made the transition to a sustainability
model. There is also a series of useful
flow charts and templates that can guide
a company that is ready to undertake
the move.
The pandemic era has made many
companies wary of looking at overseas
expansion, but Cynthia Dearin, a
consultant with extensive diplomatic and
management experience, believes that
there are opportunities waiting for the
bold, especially with the global middle
class seeing unprecedented growth. In
Business Beyond Borders, she underlines
the importance of research and preparation
in everything, from choosing the right
target market and understanding the
business environment to product pricing.
Spend some time in the country, she says,
especially if you are looking for partners.
Regulations and intellectual property rules
are important, and business associations
can offer assistance.
Dearin discusses successful cases of
international expansion. There is much to
learn from attempts that went wrong – for
example, the initial failure of Starbucks to
move into Australia underlines the necessity
of knowing cultural mores. Be clear on your
strategy, says Dearin, and focus on one
country at a time. Ensure that you have
sufficient cash on hand to sustain the setup period, and put effort into developing
suitable metrics. This is solid advice
provided in plain language, adding up to a
useful package for anyone who is ready to
look for new challenges.
14 ITB July 2022
Dearin & Associates