Financial Planning

Spending AND Investing – at the Same Time

Our overall wealth building philosophy for you can be summed up in one sentence:

“Have one eye on now and one eye on the future.”

This means we want you to enjoy the benefits of your hard work right now (drive a new car, enjoy regular holidays, eat out, drink that nice bottle of wine, etc) while AT THE SAME TIME putting some of your money away into good investments to provide for your future.

• Imagine: Spending some of your money now absolutely GUILT FREE while knowing that you’re also putting enough aside to give you a beautiful future.

This is what we can help you to do, starting today!

“Pools” of Wealth

We want you to have 3 “pools” of wealth. In other words, 3 sources of funding that you can draw from when needed, at different circumstances and different occasions in your life.

Pool 1 – Cash Backup Fund

• You need access to cash in case of an emergency. When younger and single, our goal is 3 to 6 months of your salary. When older and with a family and home loans, our goal is for you to have 12 months of your salary.
• In most cases, you would keep this wealth pool in a Home Loan Offset Account or in a Cash Management Account which pays interest.

Pool 2 – Core Family Wealth

• Our goal is for this wealth pool to provide you with enough money to live comfortably on for the rest of your life.
• In most cases, you would keep this wealth pool in a Self Managed Superannuation Fund (SMSF) and a Family Trust, and your money would be invested in good quality property, shares and managed funds.

Pool 3 – Aspirational Wealth

• You need at least $500,000 in your Core Family Wealth Pool before you consider this pool.
• This wealth pool would be invested in high growth assets, such as emerging markets and alternative investments. It would be designed to “super-charge” your retirement wealth.

Our wealth building advice to you will always relate back to one of these three “pools” of wealth.

What are Your Financial Goals?

Our advice is tailored to you and your family’s financial goals. What are they?

Don’t worry if you haven’t given this much thought until now. The important thing is to put your financial goals down into writing and share them with us so that we can keep you on track to achieve them.

When we meet next we will ask you for 3 initial financial goals for us to help you achieve.

Wealth Builder Recommendations for You!

Our advice to you will be “holistic” – covering not just some but all aspects of your financial life.

There are 7 key areas to Wealth Building. The sooner we can start working with you in these areas, the sooner you will be able to achieve financial freedom!

	Key Area	Why This is Important
1	Know your “Freedom Gap”	We’ll create for you a one page plan for your future – how much $ you will need, an estimate of how much $ you’ll have, and how to help you get to what $ you’ll need to ensure you have a beautiful financial future!
2	Know where you are: MyProsperity Personal Wealth Portal	To make the best decisions, you need to see your entire financial position on one page, with yesterday’s balances for all cash accounts, credit cards, loans, and investments. Using the MyProsperity Personal Wealth Portal does this for you – simply, easily, and allows you to be in full control of your future!
3	Debt / Loan Optimisation	You need a plan to reduce your debt over time – and debt optimisation helps you to reduce your non-tax deductible debt, and to turn whatever debt you do have into tax deductible debt if possible. Includes: Home Loan Review and Debt / Loan Optimisation advice.
4	Work your Superannuation	Your Superannuation account or SMSF is the key to your wealth creation. Your SMSF can borrow to purchase property investments using recent tax law changes. Includes: Superannuation Review.
5	Invest in a Tax Effective Manner	Imagine buying shares with no downside risk! Receive all dividends and capital growth without losing anything if your shares go down in value. Save tax at the same time, in most cases with no up-front cash required. Includes: Investment Review.
6	Protect your Assets	Ensures you and your family can continue to live your chosen lifestyle after a sickness / accident / death. Includes: Income Protection, Life, Trauma, Disability Insurance and Business Insurance advice.
7	Update your Estate Plan	Ensures that your assets are distributed tax effectively to your chosen family members if you die. Is your Will valid and up to date? Do you have a Power of Attorney? Have you planned for tax-advantaged income for your dependents after your death?

 

 

Our Inspire financial planning partners can help you investigate which strategies may be appropriate for your personal situation.