The end of the financial year is almost upon us, and while many of us will groan at the prospect of once again having to fill out the dreaded tax return, this point in the calendar does provide us with a useful reminder for a number of considerations for our financial wellbeing.
Here are a few tips for you as we leave FY17 behind, and welcome FY18.
- Don’t panic! …
- Check in with your goals. The halfway point of the calendar is a great opportunity to evaluate your progress with any financial goals you set at New Years’. Are your savings on track? If not, use this time to consider what can be done – including automated debits into your savings accounts or extra payments against your mortgage – to ensure that, by the year’s end, you have done your utmost to reach your targets. Don’t be that person who sets New Years’ resolutions and then forgets about them.
- Be aware of changes to super. As you may know by now, the rules governing superannuation are changing from 1 July 2017. These changes will affect contributions you can make to super going forward. There may be benefits for you in making additional superannuation contributions prior to the changes. Knowing how these changes affect you and your financial planning is crucial.
- Maximise contributions to super. Additional contributions to super balances can be made if you are eligible for the government’s co-contribution, and to the accounts of your spouse, if he/she is non-working or low-income-earning. Knowing how to utilise such contributions, and when to make them, is important if you are to secure the financial future of not only yourself but also your spouse.
Pre-pay tax-deductible expenses. You may also wish to bring forward deductions that would otherwise be paid in future financial years. Examples of tax deductible expenditure items that you could prepay include business rent, repairs, subscriptions and donations, some insurances, and investment loan interest. Speak to your adviser about whether such forward planning is relevant and beneficial.
AFPG wants you to start the new financial year with a strong foundation. Call us anytime to discuss your financial planning needs, and how best you can ensure you are reaching your goals and securing your future.
AFPG wants you to start the new financial year with a strong foundation. Call us anytime to discuss your financial planning needs, and how best you can ensure you are reaching your goals and securing your future.
Image: Ant Hill
Ant hills are a natural engineering phenomenon. These tiny creatures use dirt and sand to build fortresses that are protected from rain, external elements and predators. Your wealth can be built and protected in the same way, with steady steps developing into a portfolio protected from life’s ups and downs.
