The new financial year provides the chance to check progress on any new year’s resolutions made at the start of the year and to perhaps set new ones with a financial focus. Why not start by completing our free online health check and then resolving to get your finances on track this year?
Depending on your results, you might want to include a quick 5-minute conversation about your results with our Partner – Wealth Consulting at the end of your tax appointment, at no additional cost and subject to Michael’s availability.
Some questions to start with in this new financial year are:
- Income - enough to save?
Is my income meeting living costs with enough left over to save at least 10% (or 100% of any pay rises) to save for the future? If not, do I need to cut costs or find new sources of income?
- Investing for the future?
Do I have a 5-year plan to save for the future, with tax efficiency and owned in the right name? If so, am I on track?
- Debt manageable?
Is my debt well-structured and cost-effective, with a plan to be debt-free by retirement, with cash flow directed to paying down non-deductible debt like the home loan first?
- Risk well managed?
Is the risk of my severe illness, injury or death well managed to limit the financial impact on my lifestyle choices or my family? Do I have enough savings to address this risk, or should I revise or take out insurance to address the risk?
- Financial independence on track?
Am I saving enough to meet my future lifestyle costs once no longer in full-time employment, in a tax effective structure, or will I have to take a big cut in lifestyle after stopping work? Do I only have one super fund, with a clear understanding of what it is invested in and am I contributing enough each year?
- Passing on assets tax effectively?
Are my affairs in order so that I have left clear instructions to pass on the right assets to the right people at the right time, paying the least amount of tax allowed, when I eventually die?
While this list of questions is only a starting point, we recommend you take the start of the year to reflect on how you are doing in each of the 6 key areas. If you need help, please don’t hesitate to call for an appointment with Michael on 02 9299 7044.