If COVID-19 has taught us anything, it's that you need a financial plan (that doesn’t include winning Powerball). There must be a better way than crossing your fingers that your lucky numbers come up, and there is—investing!
Now before you dismiss the idea that investment is only for the rich and famous, you don’t have to be Richard Branson to start building up your wealth.
With the property market getting harder to crack and prices booming, here are some alternative investments worth making.
Is there anyone who doesn’t want to pay less tax? Salary sacrificing is a great investment to minimise your tax and boost your super fund. It’s not going to make you wealthy overnight, but it’s a good way of making sure your retirement is everything you dreamed it would be. Some employers will also agree to let you use salary sacrificing to pay bills or purchase goods and services from your pre-tax income such as property, car or even holiday packages.
High-Interest Savings Account
Start a savings account without an ATM card attached to it and deposit 20 per cent of your wages every week/fortnight. You’ll be surprised how fast your savings can grow. For example, if you earn $60,000 per year, by putting 20 per cent 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 investment apps, investing in stocks and shares has never been easier. Blue-chip stocks come from creditable companies with a reputation of paying stable or increasing dividends. They are a great place to start if you’re a newbie to the investment market. Always connect with an investment strategist for advice to minimise risk and taxes.
Australian Government Bonds (AGB) or company bonds are generally lower risk. Not only will you get the face value of the bond back when it matures, but you’ll also collect a regular income stream in the form of interest payments. Plus, for any reason you need your money back in a hurry, AGBs are relatively easy to sell.
Invest In A Financial Strategist
A chat with a financial strategist could change your life. They’ll be able to help you structure your income towards the investments that will get you the best returns with the lowest risk. Why stay on struggle street when with the right advice, you could be paying less tax and paving your way to financial freedom?
Gerry Incollingo is the Managing Director of LCI Partners in 1998, an established accounting, finance and legal firm based in Parramatta. Since that time, the firm has expanded with six divisions and is now based in Sydney, Parramatta, and southern Sydney.
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