How To Create Secure Financial Future?
out of 16
Post on 22-Nov-2014
Embed Size (px)
DESCRIPTIONThis 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.
<ul><li> 1. Are you readyto take controlof yourfinancialfuture?Prepared byFortune Wealth Creation Group </li> <li> 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 </li> <li> 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 </li> <li> 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 </li> <li> 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 </li> <li> 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 </li> <li> 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 </li> <li> 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 </li> <li> 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 your superas a tax-free lump sum or convert it into a tax-free retirement income stream. If you startwithdrawing your super before you turn 60, you will have to pay tax on it, although part of itmay be tax free.What are the benefits of saving through super?Certain advantages make saving through superannuation more tax-effective than otherinvestments, which means your savings could grow faster. For example, any contributions youremployer makes, as well as any returns you earn on your super, are taxed at a maximum of15%, rather than at your marginal tax rate.If you make super contributions on your own, you could also be eligible for special taxconcessions.Having your super locked away until you reach retirement ensures your savings will be usedfor one purpose only to help you achieve your financial goals and secure the retirementyoure looking forward to.Why is super so important?As its unlikely that the government Age Pension alone will give you the financialindependence you deserve for the 20 or more years youre likely to spend in retirement,superannuation is key. 9 </li> <li> 10. Copyright Fortune Wealth Creation GroupHow does it compare to other investments?The advantages of superWhen it comes to saving for retirement, superannuation is specifically designed to help youaccumulate funds in an easy, tax-effective way.Investment earnings in superThe money you earn over time from superannuation is taxed at a maximum of 15%. Incontrast, earnings on investments outside of super, such as managed funds or direct shares,are taxed at your marginal tax rate.Contributions to superIf you contribute to super through salary sacrifice (that is, by forgoing pre-tax salary), thecontributions will be taxed at 15% in the fund, which is likely to be lower than your marginaltax rate.Any personal contributions you make to super from your after-tax salary are called non-concessional contributions. There is no contributions tax on these funds when youcontribute, although earnings are still subject to 15% tax.Withdrawing your superIf you meet a condition of release, you can withdraw all of your superannuation tax free ifyou are aged 60 or over, whether you take it as a lump sum or withdraw it gradually througha retirement income stream.There are advantages to be gained from the latter. If you transfer your super to an allocatedpension, annuity or similar product, rather than take it as a lump sum, you are not chargedany tax, and you will not pay any tax on income received if you are 60 or over. If you areunder 60, you may have to pay some tax on your super income, although tax offsets may beavailable. 10 </li> <li> 11. Copyright Fortune Wealth Creation GroupRetirement optionsLive the life you wantThere are many options for accessing your retirement savings, both before you retire andonce youve stopped working. Choosing the right retirement option can save you tax andgive you more flexibility to achieve the lifestyle youve always dreamed about.Allocated pensionsAn allocated pension gives you a regular income funded by your super savings. You havethe option to choose how much income you wish to receive, as long as its above a minimumpercentage of your account balance, or you can make lump sum withdrawals. There can besignificant tax benefits to retirees who roll their super into this type of retirement option, andFortune Wealth Creation Group can help you understand and take advantage of them.Pre-retirement pensions (For People who are over age 55)A pre-retirement pension lets you draw a regular income while youre still working, offers taxadvantages and gives you greater flexibility as you prepare for retirement. With this option, itmay be possible to access your super once you reach your preservation age, and in mostcases, youll pay less tax on your pension income than you would on equivalent salary orwages. The pre-retirement pension option is not for everyone, though, so its wise to seekprofessional financial advice before setting one up.AnnuitiesAnnuities provide a retirement income stream of regular payments over an agreed-uponperiod. Payments are guaranteed, and they can be linked to increases in living costs.Annuities are generally a far more tax-effective retirement option than cashing out yoursuper.Investment Growth Bond : Combining the benefits of a managed fund with the securityof a life insurance policy in a simple, tax-effective investment vehicle, the Investment GrowthBond offers a range of investment options. 11 </li> <li> 12. Copyright Fortune Wealth Creation Grou...</li></ul>
View more >
hoW can you create anD secure sustainable business? ?· hoW can you create anD secure sustainable business?…
Create secure financial forecasts with Cortana ... ? Web viewCreate secure financial forecasts with…
[Finance]Investment Advice Learn How To Hire A Dependable Advisor To Secure Your Financial Future