Superfitdad<\/a><\/i><\/p>\n <\/p>\n
It\u2019s
\nthe end of the Australian financial year which means, for those who have
\nincurred personal expenses in the course of their business, it\u2019s tax return
\nseason and, ideally,\u00a0tax refund season<\/b>.<\/p>\n
Much
\nlike the truffle season in Alba or the Indian wedding season for Gold prices,
\nthis can mean a flurry of expectant spending or, at the very least, plotting
\nabout what spending might ensue, assuming things work out favourably.<\/p>\n
And
\nirrespective of whether you have a tax refund in the offing, any time you have
\na lump sum coming your way, it\u2019s a great opportunity to start building or
\ngrowing your asset base.<\/p>\n
So,
\nin no particular order, here are some things to consider.<\/p>\n
<\/p>\n
1.Clear Debts (Especially Credit Card)<\/h3>\n
You
\nmight think: so what?\u00a0A measly $1k on the credit card. No need to worry
\nabout that. Let\u2019s buy some shares or a holiday or some fun \u2013 pick your poison!<\/p>\n
NO.
\nNot on your nelly, my friend.\u00a0The reason? Unless you have an interest-free
\ncard or have transferred a balance, you\u2019ll be paying 15-25% on the credit card
\ndebt.\u00a0All your other investments will NOT be paying you anywhere near this
\nmuch. At least on a consistent basis.<\/p>\n
<\/p>\n
2.
\nPay Down Mortgage \/ Save For A Mortgage<\/h3>\n
Paying
\ndown your mortgage might not seem sexy.\u00a0In fact, there an entire industry
\ngeared around enticing you to do other things with you money. Ignore them,
\nthough, and seriously consider paying down your home loan.<\/p>\n
But
\nbeing mortgage-free, early, is a pretty cool thought.\u00a0If you don\u2019t have
\nown property yet, start thinking how you can accelerate the process.<\/p>\n
<\/p>\n
3.
\nInvest In Yourself<\/h3>\n
How
\nmany new skills have your learned since you were 25?\u00a0For many of us it\u2019s
\nhard enough mastering the meagre skills we\u2019ve been given or acquired so
\nfar.\u00a0But investing in ourselves and our future by cultivating our
\nskill-set or talent stack is probably the most important investment we can
\nmake.<\/p>\n
To
\na certain extent, it doesn\u2019t even matter what you\u2019re learning. Whether it\u2019s
\nlearning a foreign language, taking a course on public speaking, learning to
\nwrite code, the key thing is to be challenging and stimulating ourselves to
\ndevelop and grow.\u00a0Do this and, almost by osmosis, your performance in all
\nareas will soar.<\/p>\n
<\/p>\n
4.
\nTop Up Your Superannuation \/ Pension Fund<\/h3>\n
Propping
\nup your pension with an after-tax lump sum isn\u2019t as attractive as chucking in
\npre-tax and reaping the tax benefits offered by salary sacrificing, say.<\/p>\n
And,
\nit\u2019s not really sexy.<\/p>\n
BUT\u2026<\/p>\n
Don\u2019t
\nyou want to have a comfortable retirement, especially given that there\u2019s no
\ntelling how long we might live nowadays?\u00a0Also, once you\u2019ve tucked it away
\nin your pension, it\u2019s there for a very long time, giving it a very
\nlove-you-long-time cogitation period. Which, in plain English, means it\u2019s got
\nplenty of time to grow and accumulate.<\/p>\n
<\/p>\n
5.
\nBecome An Owner<\/h3>\n
Feeling
\nemboldened now that you\u2019re newly flush?\u00a0Hit the markets. Not the Farmer\u2019s
\nMarkets, silly. The Stock Markets.\u00a0A good way to get some exposure to the
\nmarkets and become an owner (in a very tiny way, of course) of some of the
\nworld\u2019s biggest and best companies is via index funds.<\/p>\n
Index
\nfunds are popular because they don\u2019t carry the same kind of costs associated
\nwith actively managed funds. [Question: have you ever met a poor fund manager?
\nNo, me neither. It\u2019s because your fees are paying for the Jag, the Rolex and
\ntheir kid\u2019s school fees.]<\/p>\n
Not
\nonly are index funds cheaper than managed funds \u2013 often by 1-2.5% per year \u2013
\nthey routinely outperform the funds with managers. Strange, huh?\u00a0So if
\nyou\u2019re looking for a proven way to create and grow wealth over a long
\ntime-frame (10+ years), the stock markets and index-linked funds tread a proven
\npath.<\/p>\n
Or
\nyou could\u2026<\/p>\n
<\/p>\n
6.
\nBuy Individual Stocks<\/h3>\n
Not
\nfor the faint-hearted, this can be an exciting ride.<\/p>\n
If
\nyou get a tip from a mate about a firm that makes mining valves and supplies a
\nfirm who\u2019ve just found a massive unknown copper deposit somewhere in the middle
\nof Whup-Whup, well, you could be quids in.<\/p>\n
You\u2019re
\nunlikely to get any information before hundreds and thousands of others have
\nthat same information. That hot tip your mate gave you has been through brokers
\nand dealers and market-makers. People will be all over it.<\/p>\n
The
\ngolden rule, though: always tick the box to have your dividends invested. Never
\ndeviate from this and you should be okay [assuming your stock pays a dividend].<\/p>\n
<\/p>\n
7.
\nTravel<\/h3>\n
They
\nsay nothing broadens the mind like travel.<\/p>\n
Which
\nis tricky because if you\u2019re a new-ish parent, the idea of transporting your chaotic
\nsleep-deprived existence to somewhere unfamiliar where you don\u2019t know the name
\nof the barista or the nearest 24 hour petrol station for the late-night banana
\ndash.\u00a0But whether you\u2019re encumbered by kids or not, it\u2019s never that bad.<\/p>\n
It\u2019s
\nactually wonderful. The whole family seem to recognise the importance of the
\ntrip and improve their behaviour tenfold.<\/p>\n
<\/p>\n
8.
\nBuy Art<\/h3>\n
If
\nnone of the options listed before appeal, then there are a couple of other
\noptions to consider.<\/p>\n
I
\nselect them because they have the potential to be appreciating assets.<\/p>\n
If
\nyou can cultivate an appreciation of art, I think it can be useful. Finding
\nsomething (as in, a piece of art) that resonates with you and can calm you when
\nseas get stormy can be a real comfort.<\/p>\n
<\/p>\n
9.
\nBuy Jewellery<\/h3>\n
This
\nis basically: a watch.<\/p>\n
As
\nwe\u2019ve seen there are a myriad of options and we\u2019re in danger of suffering from
\na\u00a0Paradox Of Choice<\/i>\u00a0when it comes to using our tax refund
\nwisely.<\/p>\n
There
\nare other things I couldda and shouldda mentioned \u2013 But, in the interests of
\nexpedience, we\u2019ll leave it there for now.<\/p>\n
At the very least, buy something that will appreciate and grow or will help you or someone else appreciate and grow. As long as you do that, you\u2019ll be winning.<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
Important Information<\/strong><\/span><\/p>\nThe information on this website is general advice only. This means it does not consider any person\u2019s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.<\/p>\n
The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.<\/p>\n
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.<\/p>\n
Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.<\/p>\n","protected":false},"excerpt":{"rendered":"
By the\u00a0Superfitdad It\u2019s the end of the Australian financial year which means, for those who have incurred personal expenses in the course of their business, it\u2019s tax return season and, ideally,\u00a0tax refund season. Much like the truffle season in Alba or the Indian wedding season for Gold prices, this can mean a flurry of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[1368,137,1129,1495,2131,1203,404,1010,1369,151,227,1370,290,1308,117,150,1416,1063,427,1367]}
![\"bull\"](\"https:\/\/raizinvest.com.au\/investors\/wp-content\/uploads\/2016\/07\/tax-return-tips-1.png\")
<\/p>\n