fresh start for the new financial year
When the end of financial year approaches it’s often a mad rush to get your finances and paperwork in order for tax time. But what about the next financial year? While last minute tax savings are certainly worthwhile, many of the best gains can be made throughout the year so it pays so start planning early.
So while you’re already in the mood, why not spend a little time this end of financial year planning for your future? Here are some tips to help you get the new financial year off to a great start:
review your goals and values
Research shows people who have a clear idea of what’s important to them are generally happier in life than those who don’t. With the new financial year approaching, now is the perfect time to review your goals and values and ensure your financial plan supports these.
Of course, understanding your goals and values can be trickier than it seems. So to help you get started, ipac has developed a set of values cards – a fun and interactive exercise to help you identify what’s most important to you. For more information contact an adviser, or download the values cards here.
update your budget
Once you know what’s important to you, the next step is to update your budget. Start-off by reviewing all your expenses from the past financial and keeping in mind your goals and values, have a look at some areas where you could cut-back. The goal here is to cut-back on expenses, without cutting back on things that are important to you. This is called hedonic arbitrage – see our previous blog more happiness bang, for more information.
Some clever tips to help you minimise expenses include:
- taking control of your credit cards
- renting luxuries instead of buying them
- sharing goods via the internet
- taking advantage of daily deals sites
ensure your taking advantage of super
Super is one of the best way to build wealth and save for retirement tax-effectively. But in order to ensure people start planning sooner rather than later, the Government has put limits on how much you can contribute to super tax-effectively each year.
That’s why it’s important to ensure you are taking advantage of your super limits each year. Talk to an adviser about super opportunities for you this financial year including:
- salary sacrifice
- personal contributions for the self-employed
- government co-contributions
- spouse contributions
- transition to retirement
- review your insurance
You’ve worked hard to create wealth for you and your family but what if things don’t go according to plan? Having a protection plan gives you the peace of mind of knowing if something were to happen to you or your family, at the very least you wouldn’t have to worry about your financial future.
It’s important to review your protection plan with a financial adviser on a regular basis to ensure you and your family are protected financially against accident, illness and death. The new financial year is the perfect time to see an adviser.
make an estate plan
Have you got an estate plan is place to ensure your final wishes are carried out after you’ve gone?
A well-organised estate plan ensures your assets are passed on to your intended beneficiaries in a timely and tax-efficient manner. It reduces stress for your loved ones and helps minimise the risk of family squabbles after you’ve gone.
The new financial year is the perfect time to review your estate plan with your financial adviser, or if you don’t have one, get one.
While it’s important to get your affairs in order at tax time, the best way to build wealth, minimise tax and achieve the future you want, is to have a long-term plan that reflects your unique goals and values. Talk to an ipac financial adviser this new financial year and get your year off to a good start.