Being able to minimise the tax you pay on your investments is all about good financial planning. If you’re sick of seeing half the income from your investments disappear as tax there are strategies you can use to help you minimise the tax you pay without taking too much risk.
The impact that tax effective investment strategies have on your tax liability will differ for everyone, depending on your personal situations including your marginal tax rate or the investments you own. Therefore, it is important that you seek qualified financial advice prior to implementing any tax effective strategy.
Different tax effective investment strategies may include:
When you own shares you become a part owner of a company and therefore share in the success of the company. Returns to shareholders can be paid as dividends from profits or through capital growth in the share price. Generally, shares are considered to be medium to high risk investments as investors rely on the company to perform well and grow over time. They are long term investments in that the investor needs to be able to ride out any short term fluctuations in the share price.
Shares should only be purchased if they fit into an investment plan that suits your specific needs and circumstances. At Pinnacle Financial Planning, we can assist you to put together a share portfolio that meets your objectives and shows potential for both income and capital growth. We utilise a panel of sharebrokers to assist us with purchasing and selling shares and other securities on your behalf.
If you would like to find out more about these wealth creation strategies, contact us to make an appointment with one of our qualified Financial Planners.
Reach out to us today and get a complimentary consultation.