Funds Focus

End of year planning from NW Advice
Andrew Reeve-Parker,
Director of NW Advice, offers his end of year tax tips
    1. Salary Sacrifice – Direct a portion of your pre-tax salary to superannuation and pay tax at 15% as opposed to your marginal rate of tax which can be up to 46.5%, a potential saving of 31.5%. Sit back and watch the effects of compounding grow your retirement wealth. Effective For: Workers who earn more than $30,000 and have an effective tax rate of 31.5%+ Trap: If you are

How to minimise the risk of margin calls
Margin calls are a safety feature that lenders have added to their loans to ensure that the amount you owe doesn’t end up exceeding your portfolio value. ie it’s an early warning sign that you should reassess your portfolio to reduce your exposure and reassess your portfolio. Lenders aren’t closed to suggestions here, they just want to see your borrowing to fall below X% of the total value, if your able to add more cash, shares or managed funds

With the end of the tax year fast approaching it makes sense to cover some of the tax incentives and strategies available to help you reduce your tax.
Income Splitting

Income splitting is one of the simplest and effective ways of reducing your tax liability. By putting investments into the name of a partner in a lower tax bracket, you can reduce the tax payable on gains and income from that investment.

Pay more into your superannuation

With an ageing population, the