Debt Planning

Debt Planning

Almost all of us get into debt at some time or another making managing debt an extremely important part of every financial plan. In order to achieve the great Australian dream - owning your home outright - takes discipline and a carefully constructed strategy designed to suit your individual position and cater for all of the challenges life can deliver.

Most people believe that paying what they can afford on a home loan is the best strategy. While this is a great start it is really just the beginning of what can be done and strategies to employ in order to pay off your home more quickly. Our debt planners will not just provide you with a Home Loan. They provide a strategy, based on your circumstances, to pay off your home faster than you thought possible.

Debt Recycling

We have all heard the terms 'good debt' and 'bad debt' but do we really understand what they mean? What's the difference and why does it matter?

Debt recycling is a strategy used to pay down your non-deductible debt - "bad debt" - whilst increasing your deductible debt - "good debt" - while growing your investment portfolio at the same time.

Sounds confusing right? Not really, you just need one of our Planners to show you how. Debt recycling is a very powerful strategy and our Planners will assist in growing your wealth over time. A time that could be the difference between standard retirement and a fantastic early retirement.

Lending

Whatever your current debt situation is you will need a plan. The right strategy is crucial and equally as important as the right product. Financial Planners at Pathway Enterprises can advise on sophisticated strategies relating to lending structure, not just the best rate. In addition our qualified brokers can provide advice on a wide variety of lending.

Our connections to a large and varied array of financial institutions will couple you with the right strategy and will provide the very best outcome. Make your debt work for you, not against you!

Mortgages

The mortgage on a home is both the largest and most important investment that most of us will ever make. With so many choices it can be difficult to know what the best strategy is for our own circumstances.

What's important with all of this is identifying the right product and structure for your circumstances, including how it will fit with the rest of your financial plan. Stabbing blindly in the dark will have adverse consequences both now and far into the future.

Debt Consolidation

Debt consolidation is a very effective way of combining all of your debts into the one loan with one repayment. Common sense would tell you that this should be consolidated into the loan with the lowest interest rate but how do you go about doing this and what is the best deal available?

This process will reduce the amount of interest you pay over the terms of the loan and assist in paying the debt off quicker. Working with our Debt Planners will assist you through this process and help you design a plan to avoid this occurring again and again.

Superannuation

For most of us Super is not something we spend a lot of time thinking about. We know our employer pays a contribution into it and we hope there will be enough to live on once we retire.

It's important to remember... Super is your money. It's your investment to secure your financial future and it's important to understand how it is being managed and that it fits with your overall financial strategy.

Super funds differentiate from one another more than you might know. Details such as fees charged, investment profiles and insurance details will all affect you in the long term.

Many of us have multiple funds and are being charge multiple fees that will ultimately affect the amount we will have in retirement. Combining these funds will help reduce your fees and ensure the funds are invested according to your individual requirements.

How do you know which fund best suits your needs? Easy, work with our Financial Planners to find out.

Self Managed Super Funds

A Self Managed Super Fund provides flexibility to your retirement planning strategy and provides a greater range of investments to choose from. It also allows you to have more involvement in the investment decisions for the fund held within your Superannuation. A Self Managed Super fund also provides the opportunity to invest in areas your 'normal' Super funds won't such as residential Houses, Units, Commercial properties etc.

Most people believe a Self Managed Super is out of their reach, they wouldn't know how to manage the fund and even if they did, they don't have the time. Our Financial Planners will do all of the work for you, giving you as much or as little involvement in the process as you like whilst retaining the option of investments not possible through your current fund.

Buying property within a Self Managed Super Fund has never been easier or more achievable for the average Australian. You can now use your Superannuation funds to provide the deposit and fund all associated costs and gain a bank loan for the remainder of the purchase price.

Self Managed Super funds aren't for everyone and professional advice is an absolute must. There are many rules and regulations within this area and you need to be sure this is a suitable Superannuation vehicle for you. There are many other factors that our Planners will analyse including diversification, capacity to manage debt, cost / benefit measure, who will be in the fund and how much involvement you want in the investment strategy.

Recent changes to the rules surrounding borrowing through superannuation has meant that a SMSF can now access credit secured against the investment purchased and is called a 'limited recourse borrowing arrangement'. For business owners - your SMSF could potentially purchase your business premises, allowing you to pay rent directly back into it at the market rate.

To find out more contact us today and book an appointment with one of our financial planners.

Investing

Making the move from saver to investor is your first step on the road to building wealth. It's only by putting your money to work that you can really get ahead.

There are four basic categories of investments:

• Australian & International Shares
• Property
• Fixed Interest
• Cash

These are often referred to as asset classes. Within each asset class you can diversify further. The more widely you spread your investments across and within these classes, the more you reduce your risk.

With a better understanding of the types of investment risk, you can make a more informed investment decision by accepting some risk and rejecting others. A Pathway Enterprises Financial Planner can help you identify your investment strategy and objectives as part of your financial plan and provide advice on the most appropriate investments for you.

Insurance

Covering both yourself and your family in the event of a personal tragedy is an integral part of any financial plan. It's all very well and good using the tools available to grow our wealth for both the present and our future but the reality is that all that planning could be undone with one tragic event.

Having a level of cover that you feel is adequate to ensure either yourself or your family won't suffer financial hardship if the worst should happen is an unpleasant but essential part of planning your financial future.

Our Financial Planners will work with you to help structure your cover in a way that provides you the cover you need with affordable premiums.

There are many different ways to construct an insurance plan and mistakes in the process and an incorrect structure could put the whole plan in jeopardy. The worst time for someone to learn the insurance has not been set up correctly is at claim time. Our Financial Planners will provide you the plan to ensure the cover is set-up the correct way first time and allow you peace of mind.