Ten Tips for 2011

Ten Tips for 2011

Tips for 2010 / 2011 Financial Year

1. Get started now

So what are you waiting for? We are now half way through 2010 and the years are flying by. Take control of your finances and investments and look at the real reasons why you are
delaying. If you’ve had some bad experiences in the last financial year then work through them, learn from them and get started!
2. Get a plan of Action

Write down everything you want to achieve. When do you want to retire? How much money will you need? Put a time deadline on achieving certain goals and review these often. If you want to retire on $100,000 a year after tax and inflation you will need approx $2,000,0000 invested. Will Superannuation be your retirement vehicle, property, shares or a mixture of investments?
3. Get Professional Advice

Good information and advice can come from a variety of different sources. This could be a licensed financial planner, an accountant, lawyer or insurance specialist. Don’t wait until
after the event to seek professional advice, the delay could result in you paying too much tax, to be underinsured, or to leave yourself open to legal problems.
4. Have the right structure in place

Make sure you hold assets in the most appropriate tax structure. Individuals, companies, trusts and super funds are all taxed differently on their capital gains and income. What structure will give you the best asset protection and flexibility?
5. Are all your investment eggs in the same
basket?

Investments perform very differently and when the share market is booming, the property market could be treading water. If you have a diversified investment portfolio of shares, property, managed funds and fixed interest this should reduce the volatility and even out your returns. Are you investing for cash flow, capital growth or both?, inside or outside super? These are some of the discussions you should be having with your adviser.
6. Can you use your home as a springboard to wealth?

If you own your home or have sufficient equity, you can gear against your house or set up a separate investment loan that can be used for deposits on property or leverageinto shares. The interest you pay would normally be tax deductible and by having a separate loan there will be no confusion between personal and investment expenses. 7. Get rid of Non-Deductible debt first Your main aim should be to reduce nondeductible debt as soon as possible. This could be your Home loan, non-deductible car loan and any credit card debt. You are paying these loans with your after tax dollars and apart from your home loan they are normally depreciating items! Leave deductible loans until last as the government is footing part of your interest bill with tax breaks.

8. Reduce your CGT liability


By holding your investments for more than 12 months or postponing the sale of assets until your taxable income is lower are just two ways to reduce capital gains tax. For business
Owners there are a range of concessions that you could be eligible for when selling active Assets. You also need to get professional advice in relation to the ownership structure
of assets and too have these in place before you invest.

9. Keep money aside for emergencies


You should have sufficient funds set aside to cover any unforeseen circumstances. As a general rule this should be a lump sum to cover 6 months of your normal expenses. This
lump sum could be invested in an account the earns interest but allows you easy access without penalty. It could be a financial buffer you have built up on a line of credit mortgage
or loan draw back facility. Income protection provides a tax deductible way to cover up to 75% of your income in case a sickness or accident prevents you from working.

10. Get Protected


Reviewing your current level of insurance is vital to protect you and your family. If you have taken on new debts, increased your income or changed jobs, these and any other significant changes should trigger a review of your personal insurance situation
11. Make or update your will


If you want to make sure that your loved ones are provided for in your Will, that your estate is divided in the way that you wish and any assets reach those you intend them for, it’s vital that you make a Will and keep it up to date.

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الموضوع الأصلي: Ten Tips for 2011 || الكاتب: عابر الفيافي || المصدر: منتديات نور الاستقامة

سبحان الله وبحمد...سبحان الله العظيم