As Easter is upon us for 2018 — there is no better time to hunt for ideas, to strengthen your portfolio and evidently, your financial future. The good news is the hunting may not take you long at all. In fact, in this article we highlight 5 areas of your finances (which you probably already have in place) where a subtle change or taking of action can show superb returns.
1) SWITCHING YOUR HOME LOAN
Don’t be content with staying the course because it feels comfortable. It is very important to periodically check and make sure your current home loan (or loan on investment property) is not only right for you, but the best offer on the market. Remember, there are benefits to both variable and interest-only rates and it is very important for you to consider which is better for your specific situation.
Today, with rates for interest-only loans continuing to drop, there is no better time to circle back and check on your current loan. Your Investment Property Magazine highlights the lowering interest-only loans in an article, we’ve included the link at the bottom of the page.
2) SELF MANAGING YOUR SUPER FUND
It could be time for you to take control of your superannuation (with a trained professional of course). Each year, more and more Australians are deciding to take control of their supers.
In doing so they are using these funds to invest in property, shares and managed funds, and in many cases seeing better returns than the alternative — having it sit in a dormant bank account. Like with all other forms of investing, there are obviously more risks involved. Self managing isn’t for everyone but it is definitely worth the time and effort of looking into it.
3) USING THE EQUITY IN YOUR HOME
It is your biggest asset…your home. Unfortunately, it is not an income producing asset. However, that does not mean that it can’t be leveraged to create wealth and improve your portfolio. With the housing market in Australia booming, there is no better time to borrow against your home and start receiving some additional income.
4) MOVING MONEY INTO A HIGH INTEREST SAVINGS ACCOUNT
A subtle, yet, underutilised change that can significantly help with funding for retirement is switching your savings to a high interest account. Many Australians have the majority of their funds sitting in an everyday chequing account.
For better return on your hard-earned dollar look into switching into an account such as an ING ‘Savings Maximiser’, which offers higher interest rates.
5) INVESTING IN THE ASX 200
Rather than taking the time to research the next big up and coming tech coming to invest in, why not invest in the ASX 200. Compiling the largest 200 ASX listed stocks, this option minimises the risk of the “all or nothing” approach. ABC News released an article on the success of the ASX 200, it can be found below.
Finances and Easter aren’t a usual pairing. However, an extended long weekend offers ample time for a quick overview of your current situation. Don’t get me wrong, during any holidays Family comes first, but as I preach to all our valued clients, with your finances the best time to take action or make improvements is always NOW (our team would be happy to go through your findings and will be back after the Easter break to assist you in restructuring your current situation).
Have a prosperous and Happy Easter.
It is important that a person considering an investment decision does so in light of their own personal objectives, needs and financial situation and if are unable to make such an assessment, it is advisable that the person seek the help of a suitably qualified adviser.
Option Wealth Solutions Pty Ltd, its directors, employees, related companies or its agents do not accept any responsibility for persons acting on the information provided in this article.
Persons doing so, do so at their own risk.