1. Timeframe – Short – Medium – Long Term Investments
Many people find it easier to identify goals of up to five years time such as buying a bigger home, acquiring an investment property or saving for children’s education. Long-term goals of more than five years may be less precise like “retire comfortably” but should be reviewed regularly to respond to changing markets, government legislation and your own personal situation. We will be able to help you make those longer term goals more specific and then give you a range of investment strategies to consider.
You will find your focus changing significantly as retirement comes closer, and your appetite for risk will change significantly over time as well.
By asking the right questions and discussing your aspirations, while considering your earning and career circumstances, we can help you articulate your short, medium and long term goals and put together the plan to achieve them.
You might have other goals or concerns you would like addressed such as:
- You want to pay off the mortgage faster.
- You want to retire but don’t know if you have enough.
- You feel you’re paying too much tax because your affairs aren’t efficiently structured.
- You might want to leave work and wonder how your money will last.
- Your relationship is breaking down or you’re going through a divorce.
- You want to get the maximum income from your social security entitlements.
- You want to upgrade your lifestyle, like renovating, paying for a wedding or going on an overseas holiday, but don’t know if you can.
- You want to protect yourself and your family in a worst case scenario.
- You’ve come into some money (congratulations!) and you want to ensure it’s protected and put to best use.
- You need to take care of an ageing parent.
- Or it could be something that you can’t quite put your finger on – you may simply feel you have a lack of clear direction in your life financially. You know you could be doing better but are confused and don’t know where to start.
2. Borrowing to Invest
You have a reasonable income but also know that it takes time to build up investments of any magnitude. By borrowing, you can create a much larger portfolio than you would be able to with savings alone – which is known as “gearing”. This strategy has great rewards but also involves significant risk. Some of this risk can be managed by taking appropriate precautions.
Menico Tuck Parrish can provide advice to help:
- Educate you on the various aspects of gearing.
- Work out your savings capacity to determine what level of borrowing you could comfortably manage.
- Determine the best ownership structure.
- Advise on your investment portfolio including research on returns, management and style of each investment.
- Identify the impact on your taxation position.
- Identify ways of reducing the risk on the strategy by having contingencies in place.
- Facilitate the investment/s on your behalf.
- Measure your progress.
3. Managed Investments
There are a bewildering array of managed funds out there in the investment universe, each with different approaches, performance, management and fees. We spend a lot of time analysing funds, in fact some of our staff have experience managing large funds in the past.
Every circumstance is different, so that’s why we research so many investment options. When you want guidance and a strategy that suits your needs, we’re here to work as hard as your money.
You can invest in shares directly or indirectly (through managed funds). We are constantly reviewing and analysing company performance, dividend yields and broader market trends in order to keep abreast of the suitability of markets for investment both in Australia and overseas. Sometimes shares can be an effective investment vehicle for certain circumstances with fully franked dividends an attractive and tax effective way to build an income stream. Your circumstances will determine just how suitable investing in the share market can be, and if you are investing yourself, you can also use us as a sounding board or second opinion when formulating your strategy.
5. Direct Property
Australia’s love affair with investment property continues and it is a very popular way to build wealth. However property investment comes with positives and negatives, often tying up large amounts of capital, involving significant debt and long time frames.
We can help you understand your options in regard to the suitability of property investment in your strategy, the implications of negative gearing and help you understand the relative risk of property investment compared to other investment options.
6. Tax Effective Wealth Creation
Taxation enables our society to run, it enables services for all and helps support the weak or less fortunate. But it’s important to optimise your strategy so you pay what is necessary, not excessive. Some investment vehicles create tax concessions, but saving tax is only part of intelligent wealth creation. If an investment is tax effective, but doesn’t perform as well as others, does that make it worthwhile? We can help you understand the taxation implications of investments and work with you to create a strategy that maximises your wealth creation and balances your tax obligations.