The Bull

Friday 21

September, 2018 1:01 PM



The Cost Of Delay

The Cost Of Delay

Someone is sitting in the shade today because someone planted a tree a long time ago.

Share |

05.07.2018 10:29 AM

Someone is sitting in the shade today because someone planted a tree a long time ago. - Warren Buffett

If you delay seeking financial advice your retirement may not be as carefree as you think. You may have to work for longer, cut back on travel or your plans to help your children financially. Wealth takes time to accumulate – the longer you delay the higher the potential cost in the long run.

Here are three reasons why:

More tax on your earnings

Recent changes to super legislation caps the amount you can contribute in the years before retirement. Less money in your super means less opportunity to benefit from generous tax concessions. That’s because all investment earnings from your super are taxed at a maximum rate of 15 cents in the dollar. Plus, you’ll pay no tax on the money you take out, either as a lump sum or an income stream, after the age of 60.

A financial adviser can help you expedite your super contributions under the new legislation. Seek advice now so you can take full advantage of tax concessions in the super system.

Less retirement income

Research shows people who receive financial advice are almost $100,000 better off when they retire.1 Not because they work any harder – simply because they have a financial plan working for them.

A sound financial plan will help grow your wealth with an investment portfolio structured by experts and backed by tax effective advice. As your life changes your financial plan is reviewed and updated to your best advantage – to accumulate wealth while you are working, to structure your retirement income tax effectively and to protect your savings so you don’t run out of money. The best advice endures – the sooner you seek it the better.

Complications with your estate

Without an estate plan as part of your financial strategy, the legacy you’ve worked so hard to create may unravel once you’re gone.

Your superannuation and assets owned by trusts are unlikely to form part of your will – other documents may be required to ensure these assets are distributed according to your wishes. If you fail to address these considerations as part of your estate plan, disputes or tax liabilities may arise, causing unnecessary delay and costs in the administration of your estate.

Published by Perpetual
Archive
Markets
Index: Points Change Percent

PLEASE SUPPORT OUR SPONSORS, AUSTRALIA'S LEADING BROKERS:



© Copyright TheBull.com.au. All rights reserved.