By Jessie Hinds

Brisbane is an outdoor city. So what did the locals do, when they were stuck at home for large chunks of 2020? Not surprisingly, new recipes and fitness routines were quickly adopted. But many people, perhaps a bit shell shocked by the Covid crisis, also started to think about their financial future.

Of course, putting together a financial plan can be a difficult thing to do in isolation. It’s far better when you’ve got an expert Brisbane financial planner there with you to walk you through it. That’s why Brisbane investors are no longer thinking about potential lockdowns. Instead, they’re reaching out to financial planners and locking down their plans for the years ahead.

This upsurge in enquiry from Brisbane residents and business owners seeking financial advice has continued into the new financial year. Families and businesses from Brisbane and beyond are reassessing their goals and evaluating their investment strategy.

If you’ve been thinking about seeking advice from a Brisbane financial planner, Elston can help.

Elston’s collaborative approach to reviewing and renewing strategic plans offers multifaceted benefits: In depth analysis of not only your financial situation for the outgoing and incoming year, but also personal and lifestyle factors. These can often highlight areas of improvement. Your financial adviser knows the right questions to ask to bring these into focus.

Additionally, with the ever-changing landscape of financial planning, there may be new resources or legislative changes to impact your goals. The Government’s stimulus measures can present a number of opportunities for people who are preparing for retirement or have already stopped working.

An Elston adviser will work with you, reviewing your plan to identify and implement any changes to maximise your financial potential. Whether you’re with Elston or not, we encourage everyone to make an appointment with their financial planner to review their goals. We’ve put together a checklist of some of the fundamental issues for consideration at your next consultation:

Review Your Goals – Stay on Track

A lot can happen in a year, and your individual goals, limitations and assets may have altered. Life throws game-changers constantly. Take the time to revisit your goals, and ask yourself the questions that matter:

• Is my budget and savings plan still on track, relevant and manageable?
• Will the coming year bring personal considerations – retirement, a new arrival, division or merging of marital assets, a business or property sale, an inheritance?
• How will this affect my tax and insurance needs?

Personal Financial Considerations – Superannuation

Your personal financial circumstances are equally important when it comes to putting your finances under the microscope. Some common issues for consideration are:

• Superannuation Contributions: If you have a salary sacrifice arrangement with your employer, review your contributions to ensure you have not exceeded the concessional contributions cap (be aware that employer contributions also count towards the limit).
• Contributions up to 67: A recent rule change has allowed those up to age 67 (previously 65) to contribute to superannuation without having to meet a ‘work test’. If you have spare cash or investments in your personal name, superannuation can be a powerful structure to house your hard-earned dollars.
• Downsizer Contributions: Are you over 65 and considering selling your home of more than 10 years? You need to know this rule! The downsizer contribution entitles each member of a couple to contribute up to $300,000 into superannuation without having to meet any work test. Even if you require the sale proceeds of your former home to purchase your new home, your savvy Elston adviser will be able to show you how to reduce potential tax that your children might pay if/when they inherit your superannuation. Chat to your Elston adviser today for more information.
• Catch up Contributions: Was your total super balance under $500,000 as at 30 June 2020? Did you maximise your concessional contributions in the 2019 and 2020 financial years? If not, you may be able to carry forward your unused concessional contributions to contribute more into your superannuation this financial year. The benefit? A bigger tax deduction and a smaller tax bill! Speak to your Elston adviser to see if you meet eligibility criteria and to ensure this strategy is beneficial to you.
• Co–contributions and Tax Offsets: Did you know that if your taxable income is less than $53,564 per annum, you may be eligible for a government co-contribution to your superannuation? Additionally, if your spouse will earn less than $40,000 this year, you may be eligible to claim a tax offset. Eligibility varies, so speak with your Elston adviser to determine if you qualify.
• Superannuation Pension: Whether you are drawing on an Account Based or Transition to Retirement Income Stream, take the time to review what the minimum annual payment is, and ensure this is paid out annually. Your super fund’s tax redemption could be jeopardised if the minimum payment is not reached. Please note that the minimum annual percentage based pension has been halved for the 2020/2021FY. This may be helpful for those who don’t necessarily need as much from their superannuation this financial year and would prefer to preserve their benefits in the tax effective superannuation environment.

Investment Strategy – Investment Advice

With the fluctuation of personal variables that impact on finances, and Brisbane’s ever-changing economic and lifestyle climate, the savvy investor should incorporate an investment management strategy as a critical component of their New Year financial health and security checklist, in conjunction with their financial adviser.

• Is yours a well thought out investment strategy that draws on diversity?
• Does your plan comprise a mix of assets and shares?
• Do you have a Self Managed Super Fund (SMSF)?

When reflecting on how to manage your investments, give consideration to issues such as investment risk, target return, liquidity, income requirements and tax effectiveness.

Building and protecting your wealth requires ongoing review and management. It’s important to make sure you receive investment advice unique to your circumstances, and that your strategic financial plan is on track to meet your goals. The sooner you review and evaluate your financial situation, the sooner you can start working towards achieving better outcomes. If you haven’t made an appointment with your Brisbane financial planner yet, now is the time!

To review your goals for the new financial year, or to discuss your individual needs with a Brisbane financial planner that offers a collaborative, personalised service and tailored investment advice, contact Elston Brisbane on 07 3211 9555 or 1300 ELSTON (357 866) or email info@elston.com.au