40 SOMETHINGS
Are you halfway there yet?
The 40s age group represents huge potential and can be a period of growth, great change and the consolidation of lifetime goals.
Use of several strategic options should be considered to maximise capital growth, reduce taxation and provide diversification and flexibility as follows:
- Careful budgeting to reduce non-tax-deductible debt
- Stepped conversion of a primary residence to an investment property and/or acquisition of an additional property
- Progressive salary sacrifice to superannuation. One big mistake we have seen in reasonable salary earners is requesting their employer to stop making the super guarantee payment for them or that over the maximum $27,500 (taxable at 15% and amounts over at 30%) deductible contribution. They then mistakenly take the amount as a fully taxable salary payment at the higher marginal tax rates of 32.5% and up to 45% plus the extra 2% for the Medicare levy.
- Regular checks on progress and review of lifetime goals.
Investment conditions and tax rules are constantly changing. Keeping up to date with these requires professional guidance.