Dear Friends
New year financial resolutions
Here’s hoping this is a good year for us all. And on that note, it’s probably a good opportunity for everyone to take another look at their financial plans and strategies.
When you think about it, we’re already more than halfway through the current financial year. So, in terms of financial strategies, there’s now less than six months left to implement any that relate specifically to the 2024-25 tax year.
That creates a small degree of urgency, but there’s still a good amount of time left to focus on shorter-term strategies as well as longer-range ones that can potentially be maximised by taking advantage of opportunities available before the end of this financial year.
So here’s a few things to consider. Firstly, setting goals is a key part of the financial planning process, but they can change over time. It’s worth taking another look at your goals to make sure they make sense for you.
It’s also important to review your budget and spending, because doing so will help you to fully understand your ability to achieve your financial goals. Identifying where you could reduce expenses will allow you to calculate how much money you may be able redirect into savings and investments.
Secondly, one of the key principles of investing is having an investment strategy that’s aligned to your goals and one that is well diversified across different types of assets and within each asset class, to help spread risk.
Yet, because assets perform differently over time, it’s important to keep an active eye on your investment portfolio to ensure it remains aligned to your risk profile. It may be necessary to make some slight adjustments or to rebalance periodically. We review this annually at your review meeting and will recommend any necessary changes.
Another thing to consider is superannuation contribution options. Given we’re already over six months into this financial year it’s worth evaluating whether you’re making the most of all your superannuation options.
On 1 July last year the annual limit on concessional contributions, which are only taxed at 15%, was lifted from $27,500 to $30,000. Separately, the annual limit on non-concessional (after-tax and therefore tax-free) contributions was lifted from $110,000 pa to $120,000 pa.
Options could include starting a salary sacrifice plan (or increasing an existing one), taking advantage of unused concessional contributions, and using the proceeds from non-superannuation asset sales to boost your super or to top up your Account Based Pension.
Lastly, don’t forget about estate planning. It’s a vital component of good financial planning and should include having a legally valid Will that specifically documents how you want your assets to be managed and divided between your nominated beneficiaries after your death.
Mapping out an inheritance framework that identifies issues such as potential tax liabilities is a prudent step.
One more thing
I am delighted to advise you that Dylan Holliday has successfully completed his Professional Year and is now our 4th Authorised Representative. Dylan first came to my attention when he completed two weeks of work experience with us in 2019.
On completing his University Studies he commenced his career with another financial planning firm before I recruited him to join my practice over three years ago.
I have no hesitation in recommending him to all of you, as another one of our excellent advisers. In fact, I have recommended my daughter and her husband consult with him to review their investments, super and life insurance needs.
Our Financial Services Guide (FSG) has been updated with Dylan’s new role as attached.
And another thing
Over the last 12 months or so I have been reminding everyone to be on guard against scammers and to follow the Federal Government’s scam watch: http://www.cyber.gov.au/protect-yourself
One of the layers of security our clients have is the personal relationship with their adviser and our team. We recognise voices, we know the individuals, we are business ‘friends.’
On that basis, I asked my senior adviser, Jason Zanini to write an eGrow on a recent ASIC alert regarding share sale scams. We will issue this insightful and important eGrow next Friday.
As always, please don’t hesitate to contact me or any of the team if this edition of eGrow raises any questions; call (08) 8130 5130 or email admin@marinisgroup.com.au
Yours sincerely
Theo Marinis CFP®, B.A., B.Ec., CPA., MCIFAA
Financial Strategist
Authorised Representative
