If COVID-19 has taught us anything, it’s that you need a financial plan (that doesn’t include winning Powerball). There has to be a better way than crossing your fingers that your lucky numbers are showing, and there is: invest!
Now, before you dismiss the idea that investing is only for the rich and famous, you don’t have to be Richard Branson to start accumulating your wealth.
With the real estate market getting harder and harder to break into and prices booming, here are some alternative investments worth making.
Is there anyone who doesn’t want to pay less tax? Salary sacrifice is a great investment to minimize your taxes and increase your super fund. It won’t make you rich overnight, but it’s a good way to make sure your retirement is what you dreamed of. Some employers will also agree to let you use the wage sacrifice to pay bills or purchase goods and services from your pre-tax income, such as a property, a car, or even vacation packages.
High interest savings account
Open a savings account without an ATM card and deposit 20 percent of your pay every week / fortnight. You will be surprised at how quickly your savings can grow. For example, if you earn $ 60,000 a year, putting 20% of your salary aside, after 12 months you could have more than $ 12,000.
With a wealth of information available at your fingertips on the internet and dedicated investing apps, investing in stocks has never been easier. Blue-chip stocks come from reputable companies with a reputation for paying stable or increasing dividends. They are a great place to start if you are new to the investment market. Always contact an investment strategist for advice on how to minimize risk and taxes.
Australian Government Bonds (AGBs) or corporate bonds are generally less risky. Not only will you get the face value of the bond back when it matures, but you will also receive regular income in the form of interest payments. Also, for some reason you need to get your money back fast, AGBs are relatively easy to sell.
Invest in a financial strategist
A conversation with a financial strategist could be life changing. They will be able to help you structure your income towards the investments that will give you the best returns with the least risk. Why stay on the streets when, with the right advice, you could pay less taxes and fight your way to financial freedom?
Gerry Incollingo was the Managing Director of LCI Partners in 1998, an established accounting, finance and legal firm based in Parramatta. Since then the company has grown with six divisions and is now based in Sydney, Parramatta and South Sydney.
And here is what you can claim if you are working from home.
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