Wealth Accumulation and Debt Reduction

Most of us start out saving for that great Australian dream - owning our own home (at least in partnership with a lending institution like a bank). The earlier you start to plan your finances, the better it can be in the long run.

If you have a mortgage (or are getting one), you need to review which mortgage solution is most appropriate to you. There is the traditional principal and interest mortgage, then you have lines of credit and interest only loans as well. Once you have a mortgage there are strategies where you can minimise debt at the same time as accumulating investments – tax effectively.

It is a great time to review your superannuation accounts, where is the money invested, do you have more than one fund, what are the fees, what are the investment options, what are the insurance and beneficiary options. Getting any of these wrong can result in an undesirable outcome.

Insurance and Estate Planning are important areas to have structured as early as possible. You should address questions like – if I were to die is my family OK? What if I was sick or disabled? Where would my superannuation go if I die or was disabled? Where would my other assets go? Is my insurance and estate planning structured tax effectively?

We all like to pay as little tax as we can. This is why it is important to look at the tax outcomes of the different aspects of your financial life. At the end of the day, minimising the tax you pay will result in more money left for debt reduction or for building your investments in or outside superannuation.

Contact us today to arrange an initial meeting to discuss how we might be able to assist you.

Disclaimer

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial planner and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.