Families

These are times of growth and consolidation.

You might be considering another home or renovating the one you’re living in; having more children or saving for their education and looking at how you can better organise your finances so you have more freedom to choose now and later.

Your likely priorities at a glance:

  • Children and education
  • Mortgage
  • Budgeting and tax
  • Superannuation is becoming your second biggest asset
  • Minimising risk and securing your finances against illness and injury

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As many parents will tell you, start saving for your children’s education soon after they’re born. Insurance bonds (also known as growth bonds) can be a tax-effective way to save over ten years.

  • Tax on the earnings is done within the bond at a maximum of 30%
  • You don’t pay income tax on any investment earnings

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Many people make their mortgage their main priority and like to reach retirement debt-free.

  • There could be advantages to concentrating on your super and then paying off the mortgage once you turn 60.
  • Do you have equity? Do you know all financial benefits of an investment property? How do you correctly analyse a profitable investment property?

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Having a self managed super fund (SMSF) can give you greater control over your financial future. Being in the driver’s seat means you can access unique tax and investment opportunities and better control how your wealth is passed to your dependants.

  • Pool your super with family for potential cost savings.
  • The potential to borrow to buy a property within your super fund.
  • Insurance can be included in your SMSF to protect your income and assets.

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Have you considered growing your retirement savings by salary sacrificing into super?

Diverting more into your super through salary sacrificing is tax effective for those earning more than $18,200 (2013/14 financial year).

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Help your spouse’s super grow – and benefit yourself. If your partner earns $10,800 or less a year, you could get a $540 tax offset on the first $3,000 you put into their super from your after-tax income. This represents an 18% return!

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Depending on your income and other criteria, if you contribute to super from your after-tax money, the government might put in up to another $500 into your super.

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Do you have enough insurance?

You are working hard as a family. Illness and accident can have a catastrophic impact if you lose one income because of it.

It is estimated that over 60% of Australians are underinsured. If anything happened, could you cover the costs of repaying the mortgage, paying bills and meeting medical or funeral expenses? A range of personal insurances are available to you through super and investment products for example life insurance or income protection