Tax Effective Investment
We find this time of year is perfect to reflect on our client’s financial situation from the year past. How was your household income? How did your assets perform? What expenses did you incur, and what can you do to reduce them in the future? Have you optimised your financial position?
Whilst we’re on the topic of expenses, have you considered your largest expenses and ways to reduce them? You may be able to contact your bank and negotiate a better mortgage rate. Perhaps with some tutoring, your child can earn a scholarship to the private school? But what about your tax bill? Is there a way to minimise the largest bill you’ll pay all year? You may be surprised to learn that there are tax effective investment options available that can reduce your tax bill and can also increase your net worth.
How much tax am I actually paying?
Most of us would only stop to think about their tax bill once a year when their Payment Summary arrives from their employer. For some, it can be a timely reminder about how hard you have worked during the year. For others, it can be a shock to see how much tax you’ve actually paid over the year. Below table shows tax amounts for the 2016-17 financial year.
What makes an investment ‘tax effective’?
A tax effective investment aims to build your wealth, whilst minimising the tax you pay at the same time. For some clients, it may be appropriate to borrow some money from a lender to acquire a portfolio of investment assets. The costs may become tax deductions for you as they are related to producing income.
This strategy could be utilised to pay down your home loan sooner, or perhaps to grow a significant investment portfolio. There are a few important considerations to make before engaging in such a strategy and we would encourage you to have a chat with us over a coffee first to see if it is an appropriate strategy for your situation.
More information on Tax Effective Investments can be found here.
Investment Spotlight – Antipodes Global Fund
One example of an investment that could be utilised in a tax effective investment strategy is the Antipodes Global Fund (http://antipodespartners.com/wp-content/uploads/Global-Monthly.pdf). This fund seeks to profit from active management and investing in the best (and worst) companies from around the globe. It has an impressive track record over the last 5 years (21.35% per annum) and manages a diverse blend of companies from North America, Asia and Europe.
Other Important Considerations
+ Which investments are right for you? We pay close attention to not only the investments themselves, but also the fees you pay to hold them.
+ Is investing a viable option in your situation to build up your wealth in a tax-effective manner?
+ A thorough review is required of your current budget and cashflow to determine any surplus to invest.
How Endorphin Wealth Management can help
The advice we provide at Endorphin is always in our client’s best interests because we are not licensed by the big financial institutions. We access a range of products from different providers that can be tailored to our client’s needs.
We also utilise subscriptions to three of the top research providers in Australia to cross reference our research and recommendations.
Comprehensive analytics and research
We invest a great deal of time and effort researching the best tax effective investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.
The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.
Phillip Richards and Robert Rich
Endorphin Wealth Management
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.
Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.
This information is general in nature and does not take your personal situation into account.
Contact Us for quality financial advice so you can feel good about your future.