What does your financial roadmap look like? Does making a super contribution and claiming a tax deduction fit into where you’re headed? #heretohelp #clarityandconfidence #financialplanning . . . . . . .
What does your financial roadmap look like? Have you got a clear destination in mind or are you making ad hoc decisions on the fly and it’s pulling you in all sorts of directions? Hi, I’m Luke Hanson, Financial Adviser and Director here at My Financial Design. Let me give you an example of what I’m talking about. End of financial year is only five weeks away, so it’s not uncommon for me to get questions asking is now the best time? Should I be making superannuation contributions before the end of financial year so that I can claim a personal tax deduction? The problem with this question is that it’s very specific and it’s one that needs to be answered with a certain urgency. As I said, end of financial year is fast approaching, so let me put it this way. Imagine we go out for a drive, you’re driving, I’m the passenger, we approach intersection and you turn to me and ask, well, which way should we go? Unless we’ve had a conversation about where we’re going, what our destination is, it’s pretty difficult for me to answer that question. It’s the same with our finances. Once we choose our destination, the turn-by-turns become easy. So to answer the question whether it’s a good idea to make a superannuation contribution and claim a tax deduction means we need to look at the bigger picture first. How many years are you away from retiring in accessing your superannuation, how much tax do you expect to have this year? Is there a bill that we need to reduce and what other expenses do you have coming up that perhaps the money is going to be needed for instead? So let me encourage you with this, take some time to decide where you’d like to end up. Choose your destination as a financial adviser, this is one of the first ways I help people the most. I sit down and work out with them where is it that we’re trying to get to and then how can I build and put my expertise into place to get you there as fast as possible. But let me also say this, if you think you’re in a position to make a personal deductible contribution into super this financial year, come and see me now. Come and see me in May while we’ve still got time to uncover what your bigger picture looks like and then we can decide if it’s best for you. I’ll see you next time.