Do your financial health checks at regular intervals, but you should also do an assessment if you had undergone a major change to your employment or lifestyle. These changes could be:
- Having children
- Children turning 18
- Marriage or remarriage
- Beginning a new job or opening a new business
- New investments
Here are some of the items that are important, but often hard, to check. Think about talking to an expert when you do a review, depending on what you are reviewing and who originally arranged the items.
The insurance that people typically get include cover, income protection, health insurance, and professional or public liability. If your situation changes, review your premiums and excesses. Find out if you have enough or too much.
2.Interest rates on loans and mortgages
Banks will try hard to lure in new customers with high interest rates or refinance packages. However, they don’t work as hard with current customers, so make sure you talk to them and ask what your bank can do for you. Consult with a broker who can guide you through the confusion and get you a good deal.
3.Wills and estate planning
The item that is least likely to be regularly checked is the will. However, making sure that the changes in your life are reflected in your will is important. This is because some changes, like a marriage or divorce, can render a will invalid. Others should at least be checked, such as your children reaching legal age.
Consider these questions when reviewing your will:
- Do you think it’s right to change the executor of your will or not?
- Do you want to include any new member of your family as your beneficiaries?
- Do you think now is the right time to insert a testamentary trust?
Long-term outlook is critical when thinking of investment or business structures. Consider the tax implications at present and in the future, as well as the Consider the tax implications at present and in the future, as well as the ability of the structure to protect your assets.
Ask the following questions:
- In the absence of an existing entity, should you consider creating one for the future benefit of your family?
- If there are existing entities, are they too many?
- Did you name the right trustees or directors?
Consider these questions:
- How many funds do you own? If you’ve had several employers, then you may have more than one. This means you’re paying several fees.
- Is your fund the right one for you? Is it time to mull self-managed super funds?
- Should your self-managed fund consider a borrowing option?
There are many other reviews you can conduct, but these are some of the most critical ones. Just like your physical health, it pays to consult a reliable expert about your financial health from time to time, even if just to find out if you are well. Any you never know, you might just be in such great shape that you can invest in property. Let me know if I can help find your next ONE!