By Scott Malcolm, Certified Financial Planner, SMSF Specialist Advisor, Registered Life Planner

As we embark on a New Financial Year, it’s the perfect opportunity to pause, reflect, and recalibrate our wealth strategies. The landscape of money is ever evolving, and taking a proactive approach now can set the tone for a prosperous and secure year ahead. We often say the context to your financial decisions should always come back to the ideal life outcomes you are wanting to continue to live or create!

Cashflow and Capital Expenses:

Planning for the Big Picture

Managing cashflow is crucial, especially when large capital expenses are on the horizon. High net worth individuals often face unique challenges, such as:

• Lumpy Income Streams: Business owners, investors, and professionals may experience irregular Mapping out anticipated inflows and outflows helps avoid liquidity crunches.
• Major Purchases or Investments: Are you planning significant property acquisitions, business investments, or philanthropic commitments this year? Ensure you have a clear funding strategy that doesn’t compromise your core wealth base.
• Debt Management: Review your leverage. With interest rates fluctuating, it’s wise to assess whether your current debt structure remains

Superannuation:

Maximising Your Retirement Vehicle

Even with all the media about possible changes, Superannuation remains one of the most tax-effective vehicles for building long- term wealth in Australia. The start of the financial year is an ideal time to review your super strategy:

• Contribution Strategies: Consider whether you are maximising concessional (before-tax) and non-concessional (after-tax) Remember, contribution caps reset each year, and making the most of them can significantly boost your retirement savings.
• Investment Mix: Review your asset allocation within super. Is your portfolio aligned with your risk tolerance and long-term goals? Market conditions change, and so should your investment choices if
• Pension Drawdowns: If you’re in pension phase, confirm your minimum drawdown requirements and ensure your cash flow needs are met without eroding your capital unnecessarily.
• Total Super Balances: If you are getting close or are above the

$3Million total super balance (per member) now is a great time to review your strategies and consider if you need to make any adjustments if legislation were to be passed and change. The extra tax on the amounts above $3Million per person is only minor but can be managed with alternative strategies outside superannuation environment.

Wealth Strategies Beyond Super

While superannuation can be a cornerstone, true wealth diversification extends beyond it:

• Investment Portfolios: Review your holdings across shares, property, private equity, and alternative assets. Is your portfolio sufficiently diversified to weather market volatility? Are you invested inline with your values and ideals?
• Family Trusts and Structures: Revisit the effectiveness of your current structures for asset protection, tax efficiency, and succession
• Philanthropy: If giving back can be part of your legacy, consider whether your philanthropic strategies are aligned with your values and financial goals.

The Importance of Reviewing Your Back-Up Plans

A robust wealth strategy isn’t just about growth—it’s also about protection. The new financial year is a timely reminder to ensure your back-up plans are current and effective:

• Binding Death Benefit Nominations: Check that your superannuation nominations are up to date and reflect your Outdated nominations can lead to disputes or unintended outcomes.
• Wills: Life changes—so should your Review it to ensure it still mirrors your intentions, especially after major life events such as marriage, divorce, or the birth of children or grandchildren.
• Enduring Power of Attorney: Confirm that your nominated attorneys are still appropriate and that they understand your preferences should they ever need to act on your

Taking Action: Your Next Steps

Here’s a checklist to help you start the year on the right foot:

• Review and maximise super contributions and investment mix
• Map out cashflow and plan for major capital expenses
• Assess investment portfolios and family structures outside super
• Update binding nominations, Wills, and Enduring Power of Attorney

Starting the financial year with a comprehensive review sets a strong foundation for your wealth journey. As always, seek tailored advice to ensure your strategies remain aligned with your goals and the ever-changing financial landscape.

Seek out further advice and start your journey to being free around your money and creating wealth with understanding

General disclaimer: This information is for general informational purposes only and does not constitute financial advice or a recommendation.