(08) 8362 3488

Preparing your finances for the New Year

I know what you’re saying; “We have barely got through Christmas and now your talking about the New Year”!  If you are like me, it only felt like a few weeks ago that we were ringing in 2017 and now it is nearly done.  In all seriousness, managing your finances should be a year round responsibility however the New Year is the perfect time to review, evaluate and reset.  In…  Read more

100% off everything!

Here is an idea for you. There is no such thing as a discount. There is just the price. As we head into Christmas, many people will be lured into retailers with the promise of discounts or price reductions. Many people can’t resist the potential for a bargain – a sign promising 30% off is simply impossible to ignore! Often, these people are giving in to a cognitive bias called anchoring.…  Read more

More on mental accounting

Last week, we introduced the concept of mental accounting. We want to continue the theme this week as part of our ‘behavioural economics month.’ Mental accounting can be seen every day with little expenditures like gift vouchers. However, sometimes people apply mental accounting to much bigger parts of their financial management. And that is where it can get expensive. To recap, mental accounting is a common mistake people make with…  Read more

The best gift voucher in the world

Christmas is coming and you probably know someone who is really hard to buy a present for. You might be tempted to buy them a gift voucher. Can we suggest you think again? Unfortunately, gift vouchers are generally a really bad idea. We know, we know – we sound like the Grinch. But let us explain. You’ve probably heard of the Nobel Prize. This year’s peace prize was awarded to…  Read more

Thinking about the First Home Super Saver Scheme?

In our final article this month on managing family wealth, we look at the First Home Super Saver Scheme.  This is relatively new with the scheme having been announced in the last Federal Budget and legislation only recently being enacted. We have put together a quick fact sheet on the topic which you can access here.  Whether it is you, a child, grandchild or a friend that could benefit, please…  Read more

How do you pass wealth to the next generation?

This is a topic that everybody will eventually think about.  Whether it is the transfer of modest savings to children through to more significant amounts of money, the issues that are faced are generally similar. We have put together an eBook that looks at the topic of passing wealth to the next generation which you can access here.  We would love to receive your feedback on this.  Read more

Teaching kids how to manage money

A couple of weeks ago, we shared with you some thoughts on how you can help older children into a property.  We must have struck a chord with a few of you as we received a number of calls to chat further. This week, we thought it would be a good idea to look at the very young members of your family.  The topic of teaching kids about money is…  Read more

Making the most of negative gearing

Negative gearing is a common strategy adopted by persons wishing to build their long term wealth in a tax effective manner.  In recent years, negative gearing has become more prevalent through the advent of record low interest rates and in some parts of the country, increasing values of property. Whilst it can be an excellent wealth building tool, it does have restrictions and risks if not used properly.  In our…  Read more

Positive Gearing. What is it, how does it happen and do you want it anyway

You have probably heard the term ‘positive gearing.’ It is a similar concept to negative gearing, which is certainly in the news a lot these days. We use the term ‘gearing’ whenever debt is used to fully or partly finance an investment. If you have $90,000 of your own and borrow $10,000 to buy an investment asset worth $100,000, you have ‘geared’ the investment. Similarly, if you borrow $100,000 to…  Read more

Wealth Matters – September 2017

Our newsletter topics: Returning to work after retirement Appointing an Executor Top tips for term deposits Finding the right age to retire Checking for separation What you need to know about the new super rules Common investment traps & how to avoid them   Read more  Read more

Diversifying your portfolio

It is never the wrong time to start thinking about diversifying your investment portfolio. One of the keys to investment success lies in knowing how to diversify as a precautionary measure before it becomes a necessity.  However, being overly cautious can limit your capacity to attract good returns. The real art to amazing investment portfolios lies in knowing how to strike the perfect balance between caution and risk.  This is…  Read more

Borrowing for property via superannuation

Incorporating a borrowing strategy within self managed superannuation funds (SMSF) to purchase a property has become increasing popular in recent years. However, it is important for SMSF members to undertake sensible and detailed analysis of the true risks involved or they could find themselves in serious trouble with the ATO. Limited recourse Members have to follow strict borrowing conditions called a “limited recourse borrowing arrangement” (LRBA) when gearing their super…  Read more

Is there GST payable on sale of my property?

When selling a property registered for GST, the margin scheme can be used as an alternative way to work out the GST payable on a concessional basis. Where the scheme is applied, GST is paid for one-eleventh of the sale price.  The margin scheme calculates GST on the increase in value since 1 July 2000 if the property was acquired before 1 July 2000; or the difference between the purchase…  Read more

Guide to income insurance

Income insurance is designed to protect you and your family in the event that you become unable to work due to illness or injury. Protecting your income becomes particularly important if you have ongoing bills or debts such as a mortgage or if you have a spouse or children who are dependent on you financially. Choosing income insurance can be tricky and there are a lot of considerations that need…  Read more

Succession Planning

  It is inevitable that a business owner will eventually leave their business.  Whether they sell, retire or leave due to health reasons, it is important to be prepared for when that day eventually arrives. Creating a succession plan is a simple and common sense approach to ensure continuity in a family business.  Succession plans enable smooth transitions and decrease the likelihood of disruptions.  Early succession planning can maximise a…  Read more

Family Trusts for wealth creation

While the ATO continues to crackdown on tax minimisation strategies, quite a few legal pathways to paying less tax while preserving wealth for retirement or estate planning purposes still exist. Family trusts have significant tax saving abilities that make them an attractive tool for wealth creation.  Family trusts are discretionary trusts that set up to hold a family’s assets or run a family business.  They are commonly used by families…  Read more

Mortgage v Superannuation

Deciding whether you should prioritise paying off your mortgage or boost your superannuation balance is an important decision and there are many factors that should be taken into consideration. The first thing that you should think about is how likely it is that you will want to access the money before your retirement. If you have funneled your extra cash into additional mortgage payments, then you will usually be able…  Read more

Testamentary trusts – an overview

A testamentary trust is an effective estate planning tool that can provide greater flexibility when it comes to protecting assets and minimising tax when distributing assets to beneficiaries. Testamentary trusts are established through an individual’s Will that do not come into effect until the individual has passed away.  The trust outlines a structure whereby assets are managed by appointed trustees for the benefits of the beneficiaries nominated in the Will.…  Read more

Want to grow your business? Our Free Resources will Help