7 Financial Tips for the New Year

Happy New Year!

I hope you all had a restful break enjoying the summer weather and feast of sport available to watch on television.

I am looking forward to seeing the Swiss maestro  Roger Federer in action at the tennis.

This is the time of year when we decide to commit to new personal resolutions such as getting fitter, or spending more time with the family. It is also a prudent time to make some financial resolutions too. These are my seven tips for you to consider this year.

1. Start a family discussion about your intended final wishes. It is worthwhile even if your children are young, just so that they get an understanding of what you are thinking and your future financial intentions. It is this first step that can save a lot of angst later and also help your children plan for the future.

2. Make sure that you have enough insurance and that it is structured in a tax effective manner. The amount of insurance you need will be influenced by your income, debt, assets, and taxation circumstances. During our family conversation my wife was amused to find out that I am worth more dead than alive!

3. The next step is to update your estate plan. A current estate plan will include a comprehensive will, enduring Power of Attorney (where you nominate someone to act for you if you lose capacity), an enduring guardian, guardians for your children, superannuation beneficiary nominations and insurance nominations. Surprisingly despite it’s importance, very few people have a properly constructed estate plan.

4. Review your debts. One of the best ways to create long term wealth is to save and avoid too much personal debt. Prepare a cash flow budget to see where you are spending your money.

5. Avoid paying too much tax. There are many options to consider to pay less tax and increase your wealth. You could consider salary sacrificing superannuation contributions, or negatively gearing and investing via a family trust or self managed superannuation fund.

6. Take control of your investment strategy. There are too many uncertainties in the current financial market to be a passive investor. Understand your financial goals and invest across the appropriate asset classes (without taking any unnecessary risks).

7. Review your business structure, agreements and insurance so that if you are incapacitated your business will continue and your family will be provided for.

I recommend you make a start on these resolutions so that you hit some financial winners too! If you need assistance or would like to review your existing plans contact me on 0499976058.


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.