So Where does your money go each month?
It can be easy to let money slip through your fingers. Setting up a budget and starting a regular savings plan will help you:
• Set and achieve your financial goals.
• Make the most of your money and enjoy the benefits of your hard work.
• Get into the savings habit so you can build wealth faster.
• Increase the amount of money you have by earning interest.
• Get peace of mind that you are being smart about your money.


Getting started
• Find a budget app to help you make and stick to your budget.
• Set up a regular savings plan so that money automatically comes out of your account each month.
• Watch your savings grow.


Pennywise Investments can help you:
• Set up a regular savings plan.
• Monitor you cash flow goals.

What’s inefficient debt?
Inefficient debt is used to buy goods, services and assets that don’t generate any income. This means you need to rely on your own income sources and assets to repay this debt. Also, the interest cost on this type of debt is not tax deductible.

Examples include home loans, credit cards and personal loans.

This type of debt can impact other wealth building opportunities. Generally speaking, it is better to reduce this type of debt as quickly as possible and try to repay those charging the highest interest rate first. There are a number of ways this can be done, such as consolidating your debts into the loan with the lowest interest rate.


What’s efficient debt?
Efficient debt is used to buy assets with the potential to grow in value and generate an income. They can benefit you in two ways:
• Find a budget app to help you make and stick to your budget.
• The income from the asset can be used to help repay the loan.
• The interest cost may be tax deductible, helping to minimise any tax.

This type of loan is often used to help build long-term wealth.
Examples include investment property loans, investment loans and business loans.


Pennywise Investments can help you:
• Paying off inefficient debt quicker.
• Plan with efficient debt.

Investing starts when you have surplus cash flow from your daily living expenses to invest. If you focus on staying on your financial road map with your household budget, you can soon find savings that can be invested to help build your future wealth.

One of the easiest ways to build your investment portfolio is to simply keep adding to it on a regular basis. With a regular investment plan you can start small and build your investment over time. And by putting money into an investment portfolio rather than a savings account you could earn a higher return. For example, with an initial investment of $1,000, and by adding as little as just $100 a month, you can start a regular investment plan into a managed fund or superannuation. Assuming you earn an average of 7% each year on your investment, after 10 years your investment will have grown from $1,000 to $16,000.


Pennywise Investments can help you:
• Set up a regular investment plan.
• Provide guidance on where to invest your money.

Even if you don't own your home, you can still invest in your financial future through a well-managed gearing strategy. Using the equity in your home, for example is a common strategy for investing in other assets such as shares or managed funds.

You’ve probably heard that gearing can reduce tax. It also allows you to hold assets that have the potential to grow in value over time. Remember, though, that while gearing can magnify your gains, it can also magnify your losses. As a result, it’s not for everyone.


Pennywise Investments can help you:
• Credit and Margin Loans for Investments.
• Reverse Mortgages for retirement funding.

By following your road map, your goal of a happy and prosperous retirement can become that much closer to reality. Whether this means achieving financial independence at a certain point in life or retiring at a given age.

Our retirement planning advice will cover how much you need to retire on and if you are on track to meet your financial goals. Our highly qualified Retirement Planning Advisors will give careful consideration to the most tax effective retirement strategies and income stream solutions, as well as providing the flexibility you need in the lead up to retirement.


From the experts:
By law, all super contributions are locked away or 'preserved' until you reach your preservation age. Your preservation age is based on your date of birth. Once you reach your preservation age, you can begin drawing a pre-retirement pension. You will need to check with your super fund as not all funds offer pre-retirement pensions.


What you need to know
Once you reach your 'preservation age', you may be able to draw pre-retirement pension – a regular income stream drawn from your super savings.

With a pre-retirement pension you can put in place a transition to retirement strategy to help you ease into retirement and boost your super in a tax effective way:
• You could reduce the number of hours you work and supplement your income with payments from your pre-retirement pension. This would give you more time to do the things you want, while maintaining your lifestyle.
• Or you could continue working full-time but take advantage of the potential tax concessions on offer to boost your super balance. For example, you might keep working full-time while drawing a pre-retirement pension from your super balance. You could then salary sacrifice to super the same amount, or more. This would maintain your after-tax income while reducing the tax you pay.


Pennywise Investments can help you:
• Plan for your retirement.
• Put in place a transition to retirement strategy.
• Maximise Centrelink payments through tailored planning techniques.
• Maximise the benefits of your superannuation concessions.
• Organise your affairs to minimise tax by working with your accountant to take advantage of the latest tax strategies.