Trap – When cashing in investments that have made a profit, beware of capital gains tax. Tax planning may help reduce your tax liabilities.

Trap – Remember, every dollar you invest into super cannot be accessed until at least 55. Consider your investment time frame carefully.

Trap – Some life insurance proceeds may be subject to tax and dramatically reduce the end benefits payable to your family. Find out where you stand now and not when your dependents need it most!

Trap – Be sure you know the difference between an ‘Indemnity’ and an ‘Agreed’ value policy. It may make a big difference at claim time!

Trap – Be aware that maximum limits apply when making personal plus Salary Sacrifice Contributions to Superannuation.

Trap – Be sure you evaluate both the administration fee and investment management fee when comparing investment or super products. They both exist, but can sometimes be difficult to find on face value.

Trap – Never rely on past performance when choosing investment funds. History shows that last years ‘winners’ can often be next years ‘losers’.

Trap – The old saying ‘cheap advice can often turn out to be very expensive’ happens on a regular basis. Always remember quality and up to date advice from a professional will cost you now but may save you in the future.

Trap – Creating wealth rarely happens overnight and waiting for the next big opportunity may leave you financially ‘hard up’ come retirement. Get a plan early and stick to it.

Trap – Remember that on leaving your current employer, the life and disability cover you may have under the employer super plan may cease. Be sure to either continue this cover on leaving the plan or seek advice on replacing your cover with a personal policy or under your new employer super fund.

Trap – Don’t just look for the cheapest interest rate. Repaying your mortgage more frequently such as weekly or fortnightly and consolidating debt are just two strategies that could save you a lot more interest than the discount off your current loan interest rate.

Trap – Bad estate planning can be very costly. Consider seeing a solicitor who can develop a foolproof estate plan that will distribute your estate effectively. Tax effective structures may save you money while you’re alive, but could potentially cost your beneficiaries thousands should you die.

To help you apply real life strategies to your own situation. Check our preferred strategies against the current way you are structuring your solutions.