A financial plan is the best way to make sure your finances meet your immediate and future needs. It outlines your goals and how you will financially achieve them. It can include:
An analysis of your financial situation covering your income, debts/loans, spending habits and current savings.
A review of your wealth protection needs.
Tax-effective wealth creation strategies using investment vehicles, tailored to your individual financial needs.
Retirement planning strategies to maximise your superannuation and ensure you save enough for a comfortable retirement.
A financial plan is different for everybody and a good place to start is to look at where you are in your ‘Life Cycle’.
Every point of the life cycle is important and it is never too early or too late to create your financial plan. Don’t wait until tax time, contact us and start your financial plan now!
Young & Single
Being young and single should be a very enjoyable time in your life. It is generally characterised by few financial responsibilities, your first full time job, and a higher level income than during your education years.When you’re young, with few financial commitments, you’re in a perfect position to build the foundations for a financially secure future. It is important to understand that making sound financial decisions in the early years of your life will have a huge impact on the later stages of your life.
Consider
Your Goals both short term and long term (such as purchasing a car, moving out of home or even backpacking overseas). The earlier you start saving for your financial goals, the easier they are to achieve, as your money will have much longer to grow.
Creating a budget. Using a budget involves itemising all of your fixed and planned expenses to determine how much will be left over for saving. Use Moneysmart’s Budget Planner to maximise your ability to save and invest.
Consider investment vehicles and strategies to help you create wealth tax-effectively for the long term.
Protect your income. For most people, their income is their most valuable asset. It’s essential to protect your primary source for achieving your financial goals and building your wealth. Income protection insurance can replace up to 75% of your pre-tax income if you’re unable to work due to sickness or injury
In a Relationship
Entering into a long term relationship is a period of life that most people really look forward to. This may also provide significant financial benefits and is often accompanied with changing lifestyle goals. One benefit often experienced by couples is an increase in excess income as a result of having two income streams combined with the sharing of some expenses. Effective use of this excess income will have positive flow through effects for the rest of your lives.
Large changes in future lifestyle goals are usually encountered in this lifestyle phase. Purchasing your first home, getting married or starting a family requires a great deal more commitment and responsibility than you may be accustomed to. These decisions may require more discipline in relation to your financial affairs and make you become aware that others are now affected by your financial decisions.
Consider
Starting a Family – there are many implications that you need to consider pre and post pregnancy, including transition to one income, insurances, private health cover, will changes, entitlements to government benefits and investing for your child’s future.
Buying your first home is one of (if not) the biggest financial commitment you will ever make. Good financial planning and loan advice can save thousands of dollars off your loan and help you own your home sooner! Whether you need a home or investment loan, we have access to a superior panel of approved lenders who can offer competitive quotes and products to meet your specific financial needs.
Protect your income. For most people, their income is their most valuable asset. It’s essential to protect your primary source for achieving your financial goals and building your wealth. Income protection insurance can replace up to 75% of your pre-tax income if you’re unable to work due to sickness or injury.
Protect your family. What would happen if you were injured, fell ill or died? No one likes to think about it, but have you considered whether your family would be financially protected? We can assess your personal situation and recommend policies that best suit your needs.
Wealth Creation. Investing is a powerful wealth creation tool that we can assist you with. We can discuss your goals and different investment strategies to help you reach your goals sooner.
Start and Raise a Family
When your in a relationship with young children, there are a whole new set of financial commitments, responsibilities and goals. With kids in tow (and usually a mortgage too!), getting the family’s finances in order can be overwhelming. This is still achievable with some planning and a little discipline.
Consider
Investing for your Child’s Expenses. Putting your children through school is often the second largest expense after a mortgage for many Australians, so it’s important to plan ahead. Aside from school fees, there are regular expenses such as uniforms, equipment, and excursions that can affect your budget significantly, and with tertiary education these costs might be around for more than 15 years!
Investing on behalf of your Children. Investing at an early age is important – particularly since future generations may have to rely on their own investments to fund their retirement, rather than accessing a Government pension. Getting into the property market or purchasing a first home is becoming increasingly difficult for younger generations so the other main reason people want to invest for their children is to assist in or fund a house deposit. The effect of compounding means the earlier you start investing for your children, the easier it is to create wealth. So it makes sense to help our children start the wealth creation process at an early age.
Refinancing your home loan. As your life progresses your situation may change and your requirements from a home loan can alter dramatically. Don’t assume that just because your loan was once competitive, it still is.
Buying your first home is one of (if not) the biggest financial commitment you will ever make. Good financial planning and loan advice can save thousands of dollars off your loan and help you own your home sooner! Whether you need a home or investment loan, we have access to a superior panel of approved lenders who can offer competitive quotes and products to meet your specific financial needs.
Protect your income. For most people, their income is their most valuable asset. It’s essential to protect your primary source for achieving your financial goals and building your wealth. Income protection insurance can replace up to 75% of your pre-tax income if you’re unable to work due to sickness or injury.
Protect your family. What would happen if you were injured, fell ill or died? No one likes to think about it, but have you considered whether your family would be financially protected? We can assess your personal situation and recommend policies that best suit your needs.
Wealth Creation. Investing is a powerful wealth creation tool that we can assist you with. We can discuss your goals and different investment strategies to help you reach your goals sooner.
Approaching Retirement
Being in a relationship with adult children generally marks the beginning of your pre-retirement years. Hopefully your hard work has paid off, and your kids are financially self-sufficient. This should see a large increase in your investable income. It’s now time to really focus on paying off your mortgage as quickly as possible and developing a well-structured plan to ensure you are prepared for your retirement.
Consider
Paying off your home loan signals an important landmark in your financial life and to many it is your biggest financial goal in life. However, it is always important to consider alternative investment strategies. Sometimes the best strategy may not be the most obvious. Additionally, once your home loan is paid off, it's time to decide what to do with the extra income that used to go towards your home loan repayments.
Whether you are retired, close to retirement or retirement is still some time away proper planning is essential for all Australians.
Protect your income. For most people, their income is their most valuable asset. It’s essential to protect your primary source for achieving your financial goals and building your wealth. Income protection insurance can replace up to 75% of your pre-tax income if you’re unable to work due to sickness or injury.
Protect your family. What would happen if you were injured, fell ill or died? No one likes to think about it, but have you considered whether your family would be financially protected? We can assess your personal situation and recommend policies that best suit your needs.
If your assets are more complex and you would like to share your wealth with many loved ones, estate planning is essential. We can work with your solicitor to create an estate plan that will effectively execute your last wishes. Proper estate planning will ensure your death doesn’t result in your assets going to the tax office, or having your loved ones fighting over your wealth.
Retirement
Retirement should be a time of enjoyment and fulfilment– a period in your life to catch up on all that you have missed out on or sacrificed during your working life.
All retirees have different expectations for their retirement. Some may include working part-time in a different job, traveling, a new house, volunteer work or spending time with family and friends.
However, if not planned early enough, retirees can find retirement a stressful time as they worry whether they will have enough income to enjoy the retirement lifestyle they have always dreamed of.
Whatever your expectations may be, fulfilling them will require effective financial planning to achieve a secure and comfortable retirement.
Consider
Accessing Super. Once you have met a condition of release you can withdraw your superannuation as a lump sum or commence a superannuation pension. The tax implications of various options available can vary dramatically. We can help you plan your retirement income strategy effectively.
Protect your family. What would happen if you were injured, fell ill or died? No one likes to think about it, but have you considered whether your family would be financially protected? We can assess your personal situation and recommend policies that best suit your needs.
If your assets are more complex and you would like to share your wealth with many loved ones, estate planning is essential. We can work with your solicitor to create an estate plan that will effectively execute your last wishes. Proper estate planning will ensure your death doesn’t result in your assets going to the tax office, or having your loved ones fighting over your wealth.
