Key Components of Financial Planning

You probably have a wide range of long- and short-term financial goals, from building an education fund to planning for retirement. This is where a financial plan can help.

We are going to discuss the key components of financial planning to help you set up your goals and save for them.

What is Financial Planning?

A personal financial plan is an overview of your financial goals. Since everyone has a different financial situation, every plan will look different. However, almost all plans include life and financial goals, an analysis of the current finances, and an outline of how you will accomplish the goals you’ve set.

What Are Some of the Main Components of Financial Planning?

Here are the key components of financial planning.

1. Cash flow analysis

One of the most critical aspects of financial planning is understanding your cash flow and the connection between your current assets and debts. If you spend more than you make, it will be impossible to reach the goals you’ve set.

2. Risk management

Another essential part of financial planning is risk management. How you deal with life situations, for example, what are you going to do if you become medically unable to perform your work or physically disabled to deal with work obligations should also be included in your plan.

3. Superannuation planning

Superannuation will likely be or become one of the largest investments you will own so it is crucial that you are maximising the opportunities within this structure.   This includes analyzing the fees, the investments and asset allocation and taking advantage of any taxation or contributions strategies.

4. Retirement planning

Retirement planning helps you understand when you want to retire. The plan should include your lifestyle and income objectives after your retirement.

It is also important to understand how Government Entitlements can fit in to your retirement strategy and if there are any ways of boosting these further.

5. Investment management

There are many different vehicles or strategies to use to invest any surplus income or funds you may have and each have different taxation implications or risk and return characteristics which is why it is important to receive advice.

6. Taxation planning

To protect your investment returns, tax management is essential. There are numerous tax-reduction methods and strategies for generating wealth transfer options and tax-free income, which can be achieved thanks to tax planning.

Talk to Precept Financial Planners Today

If you are seriously considering your financial future, let us help you plan it. We have been helping people of all ages create their financial plans for decades. Our experience will help you outline your financial map to living out comfortably for the rest of your life.

Contact us today to schedule your appointment.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorised representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

Financial Planning for Property Investment

Financial Planning for Property Investment

Property investment is vital to a wealth-building plan. Property is a common piece of investment advice. Aside from providing rental income, property offers a reasonable rate of capital growth and new asset class for your portfolio. If you understand the property market well, buying a property might be one of the best investment decisions you make.

Reasons Why You Should See a Financial Planner before Investing in Property

Property investment is not something that you want to rush into, especially with mortgage finance. We suggest professional financial planning for property investment as a first stop.

The term, “as safe as houses” took on new meaning during the global economic crisis in 2007 and 2008. Many people took advantage of the low-interest rates leading up to the crisis. When the property bubble burst and lending rates increased, though, the property market crashed overnight.

People who’d bought during the halcyon period were stuck with properties worth significantly less than they’d borrowed, which they could no longer afford. The crisis showed that it’s essential to get the right advice before investing.

Considering the outflow that we’re talking about, it makes sense to seek expert advice. Property is one of the most significant long-term investments that you’ll make.

Many people make the mistake of seeking advice from friends and relatives. The advice is intended to help, but it could be completely inaccurate. If you needed brain surgery, would you seek advice from amateurs?

A professional financial planner looks at your whole investment portfolio and your goals. They’ll be able to give you an objective opinion on whether it’s the right time to invest in property. They’ll also give ideas for what type of investment suits your goals.

Talk to Precept Today

At Precept, we take great pride in building real wealth. We work on creating long-term relationships to help you with the entire investment journey. Get in touch and secure your financial future.

We don’t charge for the first consultation and you can contact us by completing the form on our website. Alternatively, call us on 08 9204 2222.

 

How to Choose A Financial Planner For Retirement

retirement planning

Financial Planning for Retirement

Enjoy your retirement to its fullest by being financially prepared for it. Is your nest egg enough to fund your lifestyle for the next thirty or even forty years?

If you want to ensure this happens, you need some sound financial planning, which is where a competent financial advisor or planner is invaluable.

 

Financial Planner For Retirement

How to Find A Good Financial Planner

Since the financial planner will be helping you fund a chunk of your future, spend a bit more time choosing the best person to help you. Lousy advice inevitably ruins the best years of your life.

Make sure they’re planners, not brokers

It is not a good idea to ask a broker to advise you. They will almost always be biased toward certain products, recommending you buy stocks and shares, whether suitable to your finances or not.

Determine how they’ll get paid

Select a financial planner with an upfront fee. Those who charge commission tend to be biased in their advice. As the broker, they might recommend financial products because they receive aside benefit, and not because it’s the best option for you.

Make sure they’re licenced.

Make sure your financial planner is licenced to provide financial advice to clients for complete peace of mind. At the very least, they should be registered with ASIC, Australia’s financial services regulator.

  • Do your homework and check their qualifications.
  • See if their experience backs their expertise.
  • Talk to their former or current clients and see how it worked out for them.

Talk to Precept Financial Advisors

If you’re seriously considering a fulfilling retirement, let us help you plan it. At Precept Financial Advisors, we have been helping Australians create financial freedom since 1986. Our rich experience will help you chart your financial roadmap to living out the best years of your life.

Contact us today for a free, no-obligation consultation.

 

Self-Managed Super Funds

Self managed super fund

A Self-Managed Super Fund (SMSF) is a superannuation fund that is structured to provide benefits to the members upon retirement. This private fund is regulated by the Australian Taxation Office.

The striking feature which acts as a major difference between other Super Funds and the Self-Managed Super Funds is that the members of the funds are also the trustees. SMSFs can hold up to four members a fund.

How does an SMSF work?

The sole benefit of Self-Managed Super Funds is providing benefits in retirement to the members and beneficiaries on death. They can receive contributions and rollovers with the help of Tax File Number, Australian Business Number and other transaction details of Bank Account. 

Every SMSF holder must:

  • Know the role of trustee, which comes with some legal obligations attached to it.
  • Devise a retirement strategy that is risk-tolerant and meets your retirement needs the best.
  • Hold sound knowledge of investment and financial decisions.
  • Research investments and manage the fund well. 
  • Organise insurance, income protection plan as well as total and permanent disability cover. 

What is the trustee structure for Self-Managed Super Funds?

  • Corporate Trustee – In this arrangement, the company acts as trustee for every member who holds the place of a director. This structure eases the registration task of the assets also provides the provision of administration efficiencies.
  • Individual Trustee – Every member acts as a trustee, and a minimum of two trustees are required. 

What are the responsibilities of an SMSF trustee?

As an SMSF trustee, the major responsibility you must undertake is making investment decisions and also making sure that the implementation of the investment strategy for the fund is well planned. Most trustees hence engage SMSF specialists who help them better manage auditing, accounting, and tax reporting along with other financial advice. 

Self managed super fund

What are the costs involved?

SMSF funds consist of various costs. These are broadly divided into:

  • Establishment cost – SMSF needs to established first, and for that comes the establishment cost. This is inclusive of obtaining a trust deed, signing a trustee declaration, and appointing a trustee. The setup cost can range from $345 to $990.
  • Operating cost – SMSF like any other super fund comes with operating cost. This cost is majorly inclusive of investment, auditing, and accounting expenses. Operating cost in the accumulation phase amounts to a total of approx. $1,1,63 to $2,367.
  • Ongoing investment costs- The cost is inclusive of:
  • Annual ASIC corporate fee.
  • Audit fees
  • Annual ATO supervisory levy.
  • Costs incurred for the preparation of tax returns and financial statements.
  • Assistance with administrative tasks for the fund
  • Insurance for SMSF members
  • Evaluation of assets held by SMSF.
  • Investment management costs – The cost of managing these funds for a meager portion of investments is necessary to pay. This amount varies majorly based on the size of the investment. SMSF with a balance of $500, 00 the annual management cost varies $208 to $714.

SMSF offers benefits upon retirement

Here are some of the benefits of managing your SMSF.

  • SMSF extends a collection of investment options for you to choose from. Trustees may access direct shares, high-yielding cash accounts, direct property, unlisted assets, collectibles, and much more.
  • Like every super fund, SMSF benefits from concessional tax rates too. Carefully resorting to tax strategies is sure to help grow super savings and administer significant reduction when a transition is made towards retirement.
  • SMSF gives the freedom to multiple members to function on a mixture of accumulation and pension accounts. The market conditions are significantly changed to suit super rules and personal circumstances.
  • SMSFs allow trustees to get in line with their personal goals and investment decisions. Your passion for property, shares, and ethical investment all becomes distinct and visible with SMSF.
  • An SMSF allows a trustee to share the superannuation assets with three members. This consolidation of funds creates large fund balance which helps shoot up the assets of the fund and investment opportunities.

Superannuation fund seems the right choice for you, but you are unsure how to initiate the process, who to trust, how to gain the best? Fret not! Percept Financial Services is committed to extending customized solutions for both the employees as well as the employer. We strive to help people with investment opportunities and excellent superannuation backed up by outstanding service. Trust us, to stay with you through it all and help you reap the benefits for your investment.

Investment And Wealth Creation Strategies

Wealth growth

Forming and implementing investment and wealth creation strategies is all about the future. Planning what financial steps you can take today to help create a better tomorrow is a forward-thinking approach to securing capital for the future and for retirement. There are a number of investment strategies to choose from, but one of the best steps you can take is to seek the help of a financial advisor from a reputable financial services company such as Precept Financial Services. Their financial advisors will discuss with you what your goals are and the best strategies to get there. While there are numerous ways to generate wealth for the future, some of the most popular include property investing, superannuation, and minimising taxes.

Wealth growth strategies

Investment Property

Investing in property can be a very lucrative way to invest and build wealth for the future. One of the most common ways of investing is to simply own your own home. Homeownership requires an initial deposit and ongoing monthly repayments. In most areas, property values rise with time, especially if you maintain your home or make upgrades. At one point or another, many people choose to downsize, and that is where you see the return on your investment. The excess equity you have built up in your home can purchase you a smaller property, as well as leave a large amount of profit to spare.

 

Buy and Hold

Buy and Hold is another popular property investment strategy where people purchase a property that is going to rise in value over time. Most often, people rent out the property so the mortgage is paid down and to generate extra income. When they sell, they use the profit to move up the property ladder.

 

Superannuation

Superannuation is a fund set up by individuals or individuals’ employers whereby money is regularly contributed while they are working so that a nest egg is steadily built up to rely on when they retire. Superannuation is also a great strategy for reducing the amount of tax you pay.

Superannuation Fund

Other Tax-Saving Tips to Generate Wealth

Forming your financial strategies based around minimizing the amount of taxes you have to pay can generate a lot of extra income, which can then be reinvested or saved for the future. Superannuation is a tax-efficient savings strategy for retirement that many people opt for. It is also important to be aware of what deductions you can claim and claim all that apply to you to lower your income level.

Saving for your future doesn’t have to be as complicated as you might think. Speak to a professional financial advisor to help align your strategies with your future goals.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives, and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorized representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

How Much Does Basic Funeral Cost?

Life is unpredictable, and one cannot predict when any loved one will depart, leaving behind friends and families. We bid farewell to those we love and care for at their funerals.  The funerals are a somber time where we depart from all those we dearly care for and love.

However, the funeral is an expensive ceremony, and if you want to do it right by the deceased, you will arrange it properly. So, how much does a basic funeral cost? There are specific charges that you have to pay that includes the fees of the funeral director, the cost of purchasing the casket. Other charges are the land price of the burial space, the expense of arranging the flowers, and the transportation charges of carrying the body to the funeral home. 

All these expenses can add up to make a significant sum that becomes difficult for many to manage. According to recent estimates by Gathered the burial expense in Australia can get anywhere between $18,000 to $19,000.1.

 

basic funeral cost

How much does basic funeral cost? The General Funeral Costs:

Regardless of the method of the funeral, some necessary costs one has to incur are:

 

Service Charges: These can range anywhere between $2,000 to $4,000. 

Arrangement of Flowers: Depending on the number of flowers, the total expense exceeds $100.

Transport for the Grievers: At times one has to arrange rent cars to transport the mourners to the funeral ceremony. On average a single-car rent starts from $330

Minister and instrumentalist payments: Anywhere from $500.

Removal and Preservation of the Body: Removal costs are mostly at $300 while the preservation expense is around $210.

Burial Expenses: There are different options for burial some more expensive than others.

Coffin: If one is going for a coffin or casket, the cost can be anywhere between $780 to $10,000 and more.

Grave Charges: The grave costs include opening and plaque labor and starts from $3500+.

Cremation Charges: Cremation includes certificates & cremation expenses as well and can start from $1200

After the cremation process charges for disposing of the ashes can vary on the methods of disposal. These are removing the ashes via wall, urn, etc. The costs start at $1200.

 

Precept Financial Services offer its life insurance plans covering the funeral costs throughout Australia and have a team of dedicated insurance advisers spread throughout the Perth metropolitan area. Check out the many options the firm offers, including the Funeral Expenses Benefit plan, that allows the person to withdraw an early payment to make the funeral payments. The company settles the amounts later from the total coverage sum. Holding these policies will help the person to arrange a proper funeral and making all the payments for the ceremony.

Why Is Financial Planning Important?

Wealth may not be everything but it can provide a certain sense of security. In a world where the future is uncertain, people cannot afford to be careless about their money.

Why is financial planning important? A proactive approach reduces wasted resources and improves the likelihood of long-term success. With the help of a professional financial planner, the whole process can be highly educational and stress-free.

Financial Planner

How Financial Planners Help Clients

1. Rationalize the Budget

The first thing that planners will do is get to know their clients. Once they are aware of their financial history, current condition, and personal goals, they can start formulating a path towards the future. They will thoroughly examine the budget and seek to improve it. Wasteful spending will be cut and savings will be increased.

2. Eliminate Debt

It will be hard to move forward if a person is burdened with crippling debt. Planners will try to eliminate these using the appropriate methods. For example, debts from various sources might be consolidated to simplify payments and avail of lower interest rates.

3. Explain Essential Concepts

Financial jargon can intimidate those who are unfamiliar with the terms. Experts can explain these in simple words to inform and educate. The more people know about what they are dealing with, the better they can make decisions for their own benefit.

4. Find Ways to Reach Retirement Goals

Retirement is one of the biggest milestones in a person’s life. Usually happening at an advanced age, people are set to slow down or completely stop with work. It would be nice to build a small fortune at this time. This would lessen anxiety and increase confidence about the years ahead.

5. Optimize Investments

Saving money in the bank is not the most productive way to prepare for the future. Interests are very low when compared to the average rate of inflation. Making investments can provide

greater rewards but this is also filled with risks. Financial planners can guide their clients when opportunities come along.

6. Reduce Tax Payments

A lot of people are taking home less money than they should because of taxes whether from income or business ventures. There may be ways to reduce these depending on the situation. Planners know exactly where to look. They can minimize the bleeding and essentially increase savings.

Learn more by setting up a meeting with a financial planner and begin your own journey towards a more secure future. Contact Precept Financial Services today for a free consultation and see how they can help you. It is never too late to take the step towards a more secure financial future.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives, and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters. Please see our Financial Services Guide for more information.

The Best Investment Strategy For Retirement

best investment strategy for retirement

Our future begins today. The decisions we make in our younger years will dictate just how well we will be living during our retirement. Make sure that you do the right things while avoiding common mistakes. Read about the best investment strategy for retirement and use options that suit you.

5 Retirement Planning Mistakes

1. Starting Late

One of the worst things that you can do is to procrastinate about securing your retirement. It would be ideal if you can begin investing in your early 20s. The second best time is now, whatever age you may be.

2. Failing to Diversify

If you put all your eggs in one basket, then you may be left with nothing in case it disappears. Seek out multiple unrelated opportunities to invest. This way, you can minimize risk and have something to draw from no matter what happens.

3. Investing Blindly

Make sure that you know what you are getting into. It’s okay to be fascinated with the latest trends. It’s fine to listen to advice from friends and family. However, you must do your own research. Act wisely.

4. Uncontrolled Spending

It would be a mistake to spend your money just because you have it. Create a reasonable budget and stick to it. Allot enough for your savings. Grow your investment fund. Avoid debts.

5. Moving without a Plan

Don’t just save and invest without a plan. Think about your goals for your retirement and the resources at your disposal. Enumerate the steps to go from where you are now to where you want to be.

Tips For Property Investors

5 Best Investments To Make In 2019

1. Career

You are your own best tool for securing your finances. Invest in yourself so that you can flourish in your chosen career. Take courses, attend workshops, or learn a new language. Do whatever you can to make yourself valuable for employers.

2. Real Estate

Populations may rise but the total land area will stay the same. As such, property values will only increase with the growth in demand. Investing in real estate is a great option if you have the funds and the smarts for it.

3. Stock Market

Although it has its ups and downs, the stock market remains a viable investment route that can provide excellent returns. See to it that you study heavily or talk to a reputable advisor before taking the plunge.

4. Business

Your investment can take the form of a business or a side job. If you have free time, then use it to increase your earnings by taking on other projects.

5. Health

All the money in the world will be useless if your health fails. You will not be able to work or enjoy your fortune. Exercise, eat healthily and cultivate a positive outlook to reach your retirement years in great shape.

No matter who you are, never think that it is too late to reach your financial goals. Contact Precept Financial Services’ team today and schedule a free consultation and learn more about how we can help you achieve more power, freedom, and confidence.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

Top Ten Tax Minimisation Strategies

tips for living within your means

Top Ten Tax Minimisation Strategies

There are top 10 tax minimisation strategies that you should not ignore in order to pay the least tax to your government. Let us go through each one with a fine tooth comb so that you know what to do when tax filing season comes. Tax minimisation strategies are easy to follow when you give yourself enough time to prepare.

1. Top of the Heap of Tax Minimisation Strategies: Thou Shalt Not Ignore the Income Tax Booklet

Most governments issue out a new tax guide for the year. And unfortunately, most people who has income to declare tend to ignore it with impunity. Unfortunately, the basic secrets of tax minimisation strategies are all there in the booklet in plain sight.

2. What Is Left Unsaid in the Annual Tax Bible Carries More Weight

And more importantly, there are unmentioned tax minimisation strategies. If you read between the lines, you will sooner than later realise some tax minimisation strategies that you never knew before. But this kind of epiphany only occurs after you have religiously dug deep into the tax guide or booklet many times.

3. No Substitute for an Excellent Tax Planner

No doubt, your self-study will take you to the path of no return. Knowledge is power. However, your journey to the side of tax minimisation strategies will never be complete without paying a visit to the tax consultant near you. There is no need to tell the advisor all you know about the wonderful world of tax collection. On the contrary, you must absorb every bit of knowledge that you can before the tax deadline looms. Contact Precept Financial Services today and find out how they can help.

4. Keep Receipts, Will Travel

Most people take transportation expenses for granted. Unfortunately, many governments do provide tax credits for buying bus passes and the like. Also, you will know from persistent tax research just what other aspects of your living expenses can be the subject of a tax break. So you know what to do!

5. Learn from Your Mistakes

To gradually improve your IQ in regards to tax minimisation strategies, do not be afraid to make mistakes. It is the best way to learn as all human beings do. With practice year after year, all the secrets will soon speak to you.
6. Donations, Donations

This is why they are so important. Donations always carry with them a hefty tax break. So you want to support a local member of parliament or city council? By all means, go ahead. And do not forget charitable organisations, too.

7. Do Ask Your Neighbour or Phone a Friend

When you are open to suggestions on tax minimisation strategies, you just never know what can come your way. Keep those eyes and ears open. You have absolutely no idea what can come next!

8. Never, Never Cram

Like cramming for an exam, you must never do this if you want to make the most of tax minimisation strategies. For you will find yourself missing important strategies when you put off preparing your income tax return till the last minute of the annual deadline.

9. How Things Change with Tax Minimisation Strategies

Be warned, things can change with tax minimisation strategies so be sure to always stay updated by not only reading the tax return bible. You must not forget to pay a visit to your tax planner regularly in order to make sure you never miss a thing.

10. And Last But Not the Least…

Your own knowledge or self-study plus the guidance of your financial planner are invaluable weapons to slay tax minimisation strategies in record time. Use them well! To find the best tax consultant, there is no need to break the bank. Stay within your budget and you will find yourself smiling when the tax man or woman cometh.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.