Recent events in the US have again highlighted how vulnerable asset prices can be to political and economic events. The Australian share market has continued its upward trend in the past month reaching levels not seen since prior to the Global Financial Crisis. This when combined with the recent increases in property prices http://www.news.com.au/realestate/super-boom-in-melbourne-home-prices-is-yet-to-reach-its-peak/story-fncq3era-1226738592242 and record low interest rates mean that it is becoming increasingly difficult to find asset classes that are well priced.
The importance of having a robust investment strategy has never been more important in this environment. People should be constantly looking for ways to maximize their risk adjusted returns. Your investment strategy should be tailored to each of your objectives and risk profile.
Further to my recent blog, I have included a link to an article http://www.kpmgfamilybusiness.com/trusts-way-protecting-family-assets/ which provides a good summary of the use of trusts. Trusts are one of the four common types of investment structures. The other structures that can be used are holding assets in your personal name, in a company and in a superannuation fund either retail, industry fund or in a self-managed superannuation fund.
Before deciding which investment structure is right for you these are some of the considerations that you should take into account:
Choice of the appropriate structure can also be subject to restrictions imposed by legislation such as superannuation funds.
Once we have established your objectives, I can work in collaboration with your taxation adviser and solicitor to determine the appropriate structure for you. Frequently this involves using a combination of investment structures as we seek to maximize tax effectiveness and balance it up with your objectives.
Having established the right investment structure or combination of structures for you, it is only then we decide what the appropriate investments should be for those structures. Frequently, we notice that clients have funds invested in structures that are not asset protective, do not take into account their estate planning objectives and only have a short time frame.
Choosing the right structure for you generally involves a trade-off between maximizing your after tax income, asset protection, accessibility requirements and estate planning objectives.
If you would like to make a time to review your Investment Strategy or Investment Structure, please call me on 0499976058.
Disclaimers & Disclosures
Geoff Ivanac is a Sub-Authorised Representative (No. 000309751) of Barsden Private Wealth Pty Ltd ATF The BPW Trust (ABN 41 153 930 799) trading as Barsden Private Wealth. Barsden Private Wealth is a Corporate Authorised Representative No.416315 of BPW Licensee Services Pty Ltd (AFSL 484 198).
The information provided on this website has been provided as general advice only. We have not taken into account any particular person's objectives, financial situation or needs. You should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs. We recommend you obtain financial advice specific to your situation before making any financial investment or insurance decision.