Wealth Advisory

Wealth Creation

An important starting point of any Wealth Plan is to establish a client’s goals and objectives. Completing a budget planner to assess where your income is going and to establish if you have a possible surplus that can be turned into savings is also a great way to start. A rule of thumb would have you save at least 3 months of future income locked away for emergencies before looking to invest on a regular basis.

Understand your situation

Financial windfall can come in different forms and it is important to understand the nature of your own individual situation. You need to be aware of considerations such as tax, legal matters and procedures that apply to your financial windfall.

Plan for your future

It may be a little difficult to see anything beyond the short term with a significant financial gain but it’s important that you do. Before you spend your newly acquired wealth, be aware and make allowances for any legal, tax and other expenses associated with it. Speak to a financial professional to gain advice on how to best use your wealth to strike a balance between achieving short term and long term goals. Don’t lose site of the long term goals as once you’ve spent this wealth, you are likely to be back where you started. Spend wisely and work with a professional to achieve the best outcome.

Consider your investment strategies

Your short term goals may address some immediate needs whilst your long term goals may be linked to your retirement planning and other matters with less urgency. It’s important to identify the investment strategies based on the timeline and horizon for the investment. Different investment vehicles hold varied levels of volatility which determines the liquidity of the investment. There may also be tax and legal considerations to address with different types of investments. Reach out and ask for guidance around these matters from a qualified professional such as a financial planner.

Consider the effect on estate planning.

A financial windfall or inheritance will most definitely change your position with any estate planning strategies you may have in place. Review and update your wills, beneficiaries and trusts to make sure they continue to remain effective with the addition of the new found wealth.

Ask to be referred to professionals.

It’s important that you have a professional to assist you when considering tax, legal and other financial matters. Speak to your financial planner about being referred to any other necessary professionals such as a Solicitor. It’s important that professionals work together on your situation so that it is handled as smoothly and efficiently as possible with a single outcome in mind to help you.

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Red Lion Advisory Pty Ltd

47 High Street, Bendigo VIC 3550
PO Box 401, Bendigo VIC 3552

ABN 48 625 234 942

John Archibald, Lucy Hateley & Red Lion Wealth Advisory are authorised representatives of Lonsdale Financial Group Ltd
ABN: 76 006 637 225 AFSL: 246934.

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