Financial Planning Tips – SALA Financial Services

Pay interest in advance
Borrowing to invest may be a tax-effective means of wealth accumulation. This type of strategy lets you purchase an investment property, shares, or any other asset that generates assessable income, by bringing forward next year’s interest cost and allowing you to claim a tax deduction for those costs this financial year.
Make a concessional contribution to super
If you are self-employed, or earning less than 10 per cent of your income from an employer, you can generally claim a tax deduction for super contributions up to $30,000 ($35,000 if you were aged 49 or over on 30 June 2014).
Protect your income and save on tax
Income protection insurance not only pays you a monthly benefit of up to 75 per cent if you become unable to work due to illness or injury, but also allows you to pre-pay your premiums and claim a tax deduction. If you pay your premiums in advance, you can claim a tax deduction for next year’s premiums in this financial year.

Have your financial goals changed?
Your goals can change greatly from year to year. Major life events such as serious illness, the birth of a child, or the death of a parent or spouse can all result in significant changes to our wealth management goals.
Prioritise your goals
It’s important to be realistic about how soon you can accomplish your financial objectives. For example, reducing any personal loans is likely to be a short-term goal, setting funds aside for your child’s education could be a medium term goal. Paying off your mortgage and providing for retirement are long-term goals.
Be investment savvy
Make sure that your investments support your appetite for risk and your objectives. A tailored analysis will address your individual risk preferences. Regular portfolio reviews with your planner are essential to determine any sell-downs or top-ups that would benefit you.
Do you need to change your financial strategy?
Your financial planner has the tools and knowledge to create projections that take into account changes to your goals, risk level, and the timeframes for achieving them. These projections will help you to see where your plans for savings, assets or investment contributions may need updating.