They say that there are two things that are guaranteed in life; death and taxes. If you want to make sure that the right people, get the right money at the right time when you are gone or incapacitated – then estate planning is important. Estate Planning isn’t just about planning for if you die. It is also for if you become incapacitated. Nowadays, this is becoming even more important due to health improvements. It is now very common for people to become legally incapacitated before passing away. If you don’t have the right things in place, you can leave a nightmare of applications and paperwork for your family to deal with regarding your wealth. How you plan your estate, can also play a big part on the amount of tax the people you leave your wealth to, will be required to pay. Whilst there are no death taxes per se in Australia, there are a lot of other taxes. Without proper estate planning, this could potentially impact those you leave behind. As a result, you might leave behind $500,000 to someone with a $150,000 tax bill attached to it, whilst another family member gets $500,000 and no tax bill. Estate Planning is an important part of any wealth plan. If you would like to know more, please contact a Financial Adviser.
When I refer to your retirement, I like to think of it as your financial retirement. We always want people to aim for a particular goal so they are able to choose what they want to do. Part of that is having enough funds to do so. A big part of this for most people is using Superannuation. Superannuation in Australia is a great vehicle that can help anyone gain more wealth. With a low tax rate of 15% and even as low as 0%, Superannuation is important to any wealth plan. The use of the Superannuation system can save thousands, and even more for those who are getting closer to their retirement date. When you get there, using the Superannuation system to help fund your income is one of the best ways to get tax free money. Currently, you can receive money tax free from super after the age of 60. Also, when your fund is in pension mode, it doesn’t pay tax. So not only the income you receive in your hands is tax free, but the earnings are tax free also. It really is a win-win as tax is for a lot of people one of their largest expenses. So when planning for your financial retirement, it is important that you consider everything that is available to you to maximise what you have. If you would like to know more on how to save thousands heading into retirement, the best thing you can do is contact a Financial Adviser.