Protecting Your Wealth

How your investments are financially structured is important because it directly affects your legal liabilities and accounting arrangements. Each individual's investment requirements are unique and it is important to get it right from the start.

Investment structuring can influence:

  • What you pay in taxes and what you can claim
  • The extent to which your investments are protected from potential lawsuits
  • Your capacity to obtain finance
  • Estate planning
  • Levels of control you may want over your investments
  • Levels of control others have over your investments

Types of structures:

  • Individual
  • Partnership
  • Limited partnership
  • Company
  • Trust
  • Superannuation funds

Each type of structure has its own advantages and disadvantages. In some cases, it may be more beneficial for you to set up a combination of these because, as a business owner or investor, there may be tax deductions that you are unaware of available to you.

Remember that your structures can be reviewed and updated as your needs and requirements change. You're not locked in to keeping a specific structure if it no longer serves your purpose.

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When considering your personal or business finances, effective tax planning is essential and can have significant implications for both business owners and investors.

Why consider tax planning?

  • It can help avoid tax pitfalls and assist you in paying the minimum tax requirement within government regulations
  • It can provide expert assistance in dealing with complex and constantly changing legislation
  • It can ensure that you avoid penalties for failing to pay the correct amount of tax
  • It will help you manage risk and maximise cost savings
  • It can assist with long-term wealth building and retention

Flo Concept Group, in conjunction with experienced advisors, can guide you to the best choice for your circumstances. Flo Concept Group is able to provide innovative tax planning and business structuring advice. A meeting with one of our advisors can ensure that any concerns you have, regarding your tax planning, are addressed.

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Effective estate planning is essential for everyone, regardless of age or circumstances, and should also form part of your financial planning process. Estate planning covers arrangements for your finances, in the event of your death.

An estate plan should include:

  • A valid up-to-date will
  • A power of attorney
  • Instructions to your executor about important financial and personal matters

Estate planning allows you to leave explicit instructions on how you wish to deal with your finances, whom would you like to receive what, the way you want them to receive it and when you want them to receive it. It can be critical in easing the financial burden on your family and eliminating any disputes.

If you marry then your will is automatically defunct, therefore, it is important to remember to update your will at this time.

If no estate plan is in place, a large portion of your estate could be needlessly lost to taxes, fees, administrative expenses and probate, or automatically revert to the government.

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Preparing for the unexpected

Sometimes in life circumstances determine that we are unable to work for a prolonged period, be it through sickness or accident. Being off work for a prolonged period of time can in itself be devastating and stressful, but there are ways that you can plan and prepare to ensure that you, your family or your partner can manage in the event of loss of income.

Income Protection - Who Needs It?

Income protection pays the equivalent of your regular income should you be off work because of sickness or an accident. It's ideal if you:

  • Have dependents and need to ensure that they can still pay the bills in the event that you cannot work
  • Own a business and rely on your income to service loan repayments
  • Own your own business where income protection can be regarded as a cost of doing business

Some benefits of income protection include:

  • An income protection plan allows you to receive up to 75% of your regular earned income if you are unable to work because of sickness or injury
  • Income protection can be simple and inexpensive
  • Premiums may be tax deductible, depending on your individual circumstances
  • If you are self-employed, you can take out an additional type of income protection, business expense insurance, which provides cover for the operating expenses of your business whilst you are unable to work as a result of sickness or accident

Should you be interested in organising Income protection for yourself or your family?

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Whether you are part of a couple, a family with dependents or single, Life Cover and Total Permanent Disability insurance should form part of any financial plan.

Life cover offers a lump sum payment on the death of the insured, providing financial security for your partner or family, allowing them to meet their financial commitments.

Total and Permanent Disability Insurance typically acts as an addition to Life Cover. Should you become totally and permanently disabled, your insurer would provide you a lump sum payment, to help cover your financial commitments and any necessary nursing care.

Both life and disability cover are simple and inexpensive precautions and should be an integral part of everyone's financial plan.

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