Its New Year review time

Its New Year review time

It often time to reflect on our past progress & what do we need to change if we are to achieve our goals. These times come at some significant moment in our lives be life, death, marriage, divorce, new job, redundancy, change of government or change of season. If there is no change then we arrive at the same destination which may or may not be where we want to go.

So that is the first reflection i.e. goals & they always need a time frame & need to be achievable. Are they written down as that alone means they will probably be achieved.
Let’s make some suggestions;
Have you made a SWOT analysis of your personal finances i.e. strengths, weaknesses, opportunities, threats?

Have you financially progressed over the year? I.e. Has your net wealth [assets minus liabilities] improved?
Is your net income greater than your gross expenses? Do you have credit card debt as this will be a great indicator of all of these questions?

These are questions that all governments are not asking & hence we have downgrading in Dubai, Greece, Spain & UK & USA pushing their luck. Interest rates are only going up as savers always want security or a higher return on their funds.

What do you want your net position to be in 3 years time? How are you going to achieve it?
Let’s look at a family’s expenses. We note that our average client family after their mortgage needs 4000pm+ as a reasonable lifestyle. Any more than that means a longer working life & this is your choice. It is no use having that 2nd income if it is for the outlandish pool [as next door to us] or the status car when the two sensible alternatives are reducing debt or building investments.

Have you reviewed the mortgage? The big Four hold 70% of all mortgages & 90% of new mortgages & are charging more. Hence a review as there is competition around is always smart. But that isn’t sufficient as the key to reducing the debt is the strategy of paying the debt first & then yourselves second.

Have you worked out the impact of future interest rate rises?

Will you have that 1 million we all need on retirement & remember that doesn’t include the home as that doesn’t produce an income?

Do you have the right or taxx efficient structure for your investments? Do you have the right people advising you on these?

What advice is your industry super fund giving?

Do you have the rental property structured correctly or does the accountant ‘guess’ how much interest you paid on your rental property?

Could you manage on one income?
Do you have a handy sheet with all family contact details?

If the bus hits you today & it does each day in each state hit someone then will the mortgage be paid off & will the family have the same lifestyle.

If the forest fire hits will you be like the 25% of affected Victorians who had no house or car insurance. Is the chook raffle sufficient to help the helpless?

Have you and the partner updated or even made the will as it will be needed one day.Do you have an exit strategy from the business?

Do you know when you will retire & how much will you need.

If you had that heart attack today do you have enough money to recovery from it & take time off work? Are you doing everything to prevent the heart attack?

Have you maximised your super as it is a 15% taxx haven at present.
If you are 55 have you taken a ‘transition to retirement’ as then the taxx within is Zero?

We easily could make another 50 suggestions.

One would be to call on 3848 1088 or email on info@wealthcoach.net.au or book on our websites www.wealthcoach.net.au or www.wecoachwealth.com.au

We meet energy with energy & here to help you help yourselves.



John McAuliffe