How To Create Secure Financial Future?

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Post on 22-Nov-2014




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This E-book is all about how to secure yours and your family\'s financial future?It explains various strategies of wealth creation, wealth management, wealth protection and wealth distribution.It would be valuable read to person who is looking to take control of his financial future.


  • 1. Are you readyto take controlof yourfinancialfuture?Prepared byFortune Wealth Creation Group
  • 2. Copyright Fortune Wealth Creation GroupWhat is Financial Planning?Financial planning is all about making sure that your current and long-termfinancial needs are met in the best possible way. 1. Protecting what have you got - your income and assets 2. Creating a investment portfolio to create long term wealth 3. Maximising your investments 4. Minimising your tax 5. Maximising your superannuation & Retirement Planning 6. Estate planningAt its best, financial planning is a long-term partnership that begins and endswith your goals. 2
  • 3. Copyright Fortune Wealth Creation GroupFinancial Planning Process:Financial planning isnt just about making money. Its about creating newopportunities to reach your goals and dreams. Fortune Wealth Creation Group offersstraightforward, professional advice so that you can get the most out of your money,finance your dreams and plan for your future. 3
  • 4. Copyright Fortune Wealth Creation GroupThe benefits of financial planningIt pays to have good adviceIt gives you direction and control.Can you imagine jumping into the car to drive across town to a street and suburb youvenever been to before without a street directory? How would you know if you were heading inthe right direction?Financial advice provides you with a roadmap. Your financial adviser will prepare apersonalised plan detailing your current position and recommend solutions to reach yourdestination (goals).Advice can help make your money work harder.Recommending solutions that take advantage of tax concessions or investment options thathave a higher return potential for the same level of risk means that your money may growmore.You may avoid making expensive mistakes.People make investment decisions that are influenced by emotions. Lets face it, money canbe a very emotional issue. A financial adviser can provide impartial advice which focuses onand encourages successful investment behaviour without emotional ties.How to reduce debt and start a wealth creation plan.Planning for Retirement. The amount of money you need to have accumulated to providefor the standard of living you want in retirement. How to maximise your retirement savingswith both social security and tax laws.Protecting your estate. How to plan and manage the transition of your estate should youdie or become incapacitated to such an extent that you can no longer make the necessarydecisions regarding your investments.Protection of your assets and goals for you and your dependants through the use ofinsurance can be a vital part of your financial plan. 4
  • 5. Copyright Fortune Wealth Creation GroupProtecting your income and assetsA key component of your financial planInsurance protects what you work hard to earn and save, and this is why it can be the criticalcomponent of any financial plan. To simplify things, it can help to look at insurance as fallinginto two broad categories protection for the things you value and protection for the peopleyou love.Life insuranceOrganising life insurance is important when planning for the future, as it can help your familycarry on if an income earner is injured, ill or passes away.Income protectionIf youre unable to work due to illness or injury, income protection can replace up to 75 percent of your regular income and cover your regular super contributions.An average individual age 25 years earning $51,235 p.a. will earn more than $3,863,184 inhis or her working life, assuming 3% inflation. To protect this amount it will cost them as littleas $40 per month, which would be tax deductible. 5
  • 6. Copyright Fortune Wealth Creation GroupTotal and permanent disability coverProvides a lump sum payout if you become totally and permanently disabled.Trauma coverTrauma cover provides peace of mind should you suffer a major illnesses or injuries, such asheart attack, stroke, cancer or blindness. 6
  • 7. Copyright Fortune Wealth Creation GroupGrowing your wealthSuited to your investment needsBuilding an investment portfolio can help you create a more secure and sustainable financialfuture and give you the freedom to live life how you want to, not how your bank balancedictates. We give you professional advice about which investment option, or mix ofinvestments, best suits your individual needs.Managed fundsIf youre looking for access to a variety of sophisticated investment types, or asset classes,managed funds may be right for you. Theyre an easy way to diversify your portfolio, andyour money is managed by professionals.Investment Growth BondCombining the benefits of a managed fund with the security of a life insurance policy in asimple, tax-effective investment vehicle, the Investment Growth Bond offers a range ofinvestment options. 7
  • 8. Copyright Fortune Wealth Creation GroupMaximising your investmentsInvestment strategies to get the most out of every dollarCreating an investment portfolio is one thing. Managing it is quite another. There are a rangeof smart investment strategies and techniques you can use to supercharge your investmentsover time.DiversificationRisk is an intrinsic part of investing. One of the most effective ways of managing investmentrisk is through diversification, or by spreading your money across a range of differentinvestments and investment types. Owning a diverse portfolio should help you achievesmoother, more consistent investment returns over time.Think in years, not daysUps and downs are intrinsic to the markets, so its important to stay focused on your long-term goals. When markets fall in value, some people are tempted to sell their investmentsand buy back in later. This approach may initially seem sensible, but really its time in themarket, not timing the market that determines your wealth.Regular investingMaking regular contributions to your investments is a great strategy for boosting your assetsover time and enables you to take advantage of other investment strategies, such as dollarcost averaging. With as little as $1,000 to start, and by adding just $100 a month, you canstart a regular investment plan into a managed fund or superannuation.CompoundingCompound interest is what happens when you earn interest on your interest. Its one of theeasiest and fastest investment strategies for boosting your portfolio balance. The longer yourmoney is invested, the bigger the effect compounding can have, so to take full advantage ofthis strategy, think about starting early.Growth investmentsRisk can be a good thing. Investing in slightly riskier options is a strategy that can deliverhigher returns and help you to reach your goals faster. Your returns on growth investments,including property investing, Australian shares and international shares, may potentially behigher than those of traditionally defensive, or conservative, investments, such as cash.Risk vs. returnDifferent types of investments carry different levels of risk, and also different returns. As ageneral rule, the larger the potential return, the higher the investment risk. Before you createa portfolio, its important to understand your tolerance for risk, techniques for managing risk,the relationship between the risk you take and the return you may receive. 8
  • 9. Copyright Fortune Wealth Creation GroupWhat is super and why is it important?Why superannuation is superSuperannuation is a type of long-term investment designed specifically to help youaccumulate the savings you need to live the life you want in retirement.There are a few ways you can save money in super:If youre employed, your employer should be contributing a minimum of 9% of your salaryinto super on your behalf each year. These funds are known as super guaranteecontributions.You can also choose to forgo some of your salary in exchange for your employer agreeing tomake increased contributions into super. This is known as salary sacrifice.You can make additional contributions to super from your after-tax salary. Just be sure not toexceed your annual contribution caps, as determined by the Australian Taxation Office.To help ensure your superannuation savings are there for you in retirement, the governmentplaces restrictions on when and how you can access your super earnings. Generally youneed to wait until you retire to withdraw these funds or until you reach your preservation age.When you turn 60, provided you meet a condition of release, you can withdraw