Steven Korner

Eliminate personal debt

Australia has some of the highest personal debt levels in the world and it is only increasing. Some of these debts are incurring interest at over 20%. If you pay down this debt it means you are receiving a guaranteed 20% return on your money.

Take control of your super

Superannuation is your nest egg for retirement. Too many of us have super spread across multiple funds. Consequently, this means that unnecessary fees are diminishing our future. This is the financial year to consolidate your super and take back what is yours.

Review your home loan

Interest rates are currently at record lows, despite this, many banks are still charging their customers an arm and a leg in interest. Speak to a mortgage broker to take advantage of the highly competitive interest rates some banks are offering. If you have a $500,000 loan and you decrease your interest rate by only 1% you will save approximately $5,000 per year in interest payments.

Construct a savings plan

Sit down and determine how much money you want to save this financial year. Now, divide this number by 52 weeks to create your weekly savings goal. Think about things you could easily substitute out of your life in order to achieve this. For example, if you were to stop buying your morning coffee this financial year you could save yourself upward of $1,400.

Plan and begin to achieve your financial targets

Most of us fail our financial year’s resolutions because we do not keep ourselves accountable to our goals. A Harvard University study found that only 3% of students had both written goals and concrete plans. However, this 3% were making ten times more than the rest of the 97% of the class after 10 years. Schedule yourself one hour to write down your goals and how you are going to achieve them. Revise this every six month and the results will speak for themselves.

The post New Financial Year wealth tips appeared first on AdviserVoice.

Steven Korner

Offset

An offset account is a bank account just like your transaction account and savings account, however, you do not earn interest. Rather, it offsets the interest you pay on your loan as it considers the money in the account has been paid off the loan. This still gives you the freedom to use this cash if needed while paying less interest on your Home Loan. It is crazy not to have at least one of these. Every account I own is an offset account to my loan (I have five accounts). This has saved me thousands per year.

Increase income and decrease expenses

This sounds simple, but it is one of the most effective ways to pay off your loan faster. Budgeting is key. Commit yourself to pay extra off your loan each month.
Be critical when deciding which of your expenses you can go without and think about how you can increase your income to achieve your goal. Start with the goal in mind and then work back from there. People don’t plan to fail, they fail to plan.

Review your home loan rates

You should be reviewing your home loan rates once a year. If you aren’t then you are potentially missing out on a truckload of savings.
Speak with a mortgage broker or call your bank directly. One approach is to let them know another bank has offered you a much lower rate (make sure you do your research first, of course) and ask what they can do to match the lower rate. For example, if your rate is 4.3% and you find another bank that offers you 3.8% then on a $1,000,000 mortgage you would save $5,000 a year. That $5,000 per year for the life of a home loan could be as much as $150,000. Nice.

Invest, Invest, Invest

Did you know that you need to earn $4 before tax for every $1 you pay off your mortgage?
This means that if you have a $1,000,000 mortgage you must earn $4,000,000 just to pay off the mortgage!! Let alone earn money to live. There must be a better way!
Contrary to what your parents may have taught you, the home that you live in is not an investment, it is a liability. It is important that you invest externally from your house in other assets and think about using any extra cash towards investing rather than paying down your home loan. The tax advantages and growth of your investments can help you pay off your mortgage much faster!

By Steven Korner, Financial Planner

The post How to own your home faster – Home ownership acceleration guide appeared first on AdviserVoice.

Get the new financial year underway with a positive plan.

Steven Korner a financial planner with Omniwealth details how you can get off to a good start for the 2018-19 financial year.

Eliminate personal debt

Australia has some of the highest personal debt levels in the world and it is only increasing. Some of these debts are incurring interest at over 20%. Personal debt is considered bad debt as it does not produce income for you, it diminishes your long-term wealth. Paying this off as fast as possible will propel you on your path to financial independence.

Take control of your super

Superannuation is your nest egg for retirement. Too many of us have super spread across multiple funds. Consequently, this means that unnecessary fees are diminishing our future. This is the financial year to consolidate your super and take back what is yours!

Review your home loan

Interest rates are currently at record lows, despite this, many banks are still charging their customers an arm and a leg in interest. Speak to a mortgage broker to take advantage of the highly competitive interest rates some banks are offering. This could save you thousands of dollars a year in interest repayments.

Protect your income and assets

Australians will not hesitate to insure their car but will not insure themselves. You are your most valuable asset. Ensure you have appropriate levels of personal insurance in place, such as Life and Income Protection, to protect yourself and your family in the event of unexpected injury or illness.

Construct a savings plan

Sit down and determine how much money you want to save this financial year. Now, divide this number by 52 weeks. Congratulations, you have just created yourself a weekly savings goal. Think about things you could easily substitute out of your life in order to achieve this. If you were to stop buying your morning coffee this financial year you could save yourself an upward of $1,400!

Plan and begin to achieve your financial targets

Most of us fail our financial year’s resolutions because we do not keep ourselves accountable to our goals. A Harvard University study found that only 3% of students had both written goals and concrete plans. However, this 3% were making ten times more than the rest of the 97% of the class after 10 years. Schedule yourself one hour to write down your goals and how you are going to achieve them. Revise this every six months and the results will speak for themselves.

The post New financial year wealth tips appeared first on AdviserVoice.