Is your financial fitness looking a bit worse for wear?
In this blog post, we offer a list of simple strategies that can help all Australians improve their financial fitness.
1: Maximise the potential of your investment property/s
If your investment property (or dare we say, properties) are looking a bit tired, start looking at ways you can give them a facelift and maximise their potential.
When done correctly, renovations can reap huge rewards in the long run. Even adding something as simple as air-conditioning can allow you to dramatically increase your asking rent.
2: Ensure your loans are properly structured
With interest rates at historic lows, now is a great time to get into the property market.
But as you do, ensure that your loans are properly structured and are in line with the competitive market rate. Many investors make the mistake of not doing their homework and settle on whatever their bank offers them. This ends up costing them more money and increasing the term of their loan.
3: Ensure your will and enduring power of attorney are current
We’ve all heard the horror stories of the wrong people getting hard-earned assets or, even worse, the government.
Always seek legal counsel when organising your will and power of attorney, especially when it comes to superannuation or trust assets. These require further documentation.
4: Consolidate your super
Many of us have held a number of super funds over our working lives.
Consolidating these funds within one appropriate fund will ensure that you have the maximum amount of capital working, while cutting out multiple administrative fees, reducing costs and increasing retirement benefits.
5: Ensure your tax returns are up-to-date
Delaying your income tax returns can add additional costs that will cut into your tax refund.
Even if you are required to pay additional tax, it is recommended that you start early to avoid any unnecessary charges. The last thing you want is a large tax debt.
6: Invest in your own financial education
There is an increasing amount of scrutiny on the financial services industry and the big super funds, especially in regards to the value of their advice and the returns they’ve offered in recent years.
Many Australians are now opting to set up a self-managed super fund to maximise their future financial well-being. If this is something you’re considering, make sure you chat to a specialist SMSF adviser, who can explain things like insurance, investment plans, relevant legislation and taxation.
Also consider investing in improving your financial literacy. Not knowing is like throwing money down the drain, and you want to approach all of these steps with as much knowledge as possible to avoid doing so.