Market Opportunities for High Net Worth Income Earners

This blog article has been written for high net worth professionals, business owners, and partners and directors of professional services firms, including law firms.

It provides a handy list of investment opportunities currently available in the market. Have a read to see what additional income streams you could be generating and give us a call for further information. Some of these suggestions are relatively accessible "low hanging fruit" and at the very least, some of these suggestions will optimise your current situation.

Market opportunities

Business: Your own business is a good starting point – is it growing or going? Is its industry as a whole growing? What new products / services are moving online? Also, investing in other businesses is a growing trend with professionals – not just waiting for directorship in semi-retirement, young professionals are using their unique skills to assist and grow with other people.

Assets outside of PSB and using spouse etc: Assets and diversification are important. So is having assets held in names other than your own. Utilising lower tax rates and less riskier entities all contribute to a successful lifestyle plan.

Investments inside and outside of super: As preservation ages are raised, it is important to have assets working for you that can be accessed readily and easily. Having a combination of both and more assets in names of spouses and entities can allow greater flexibility for working and careers. As more part-time working and consulting arrangements are being viewed by both individuals and organisations – this becomes an important trend in lifestyle plans. Super environment is great for retirement – but we are not all there yet.

Active Vs passive investments: In a low inflation / low return environment, the real return on investments is important. Passive investments are lower in fees and provide market return for investors – something that not all investment managers have been able to do. Having a portion of your investable assets in passive investments lowers the overall cost of your portfolio without necessarily giving up returns. Passive investments also provide some tax efficiencies due to lower turnover. Active investments are an important part of the lifestyle plan but unless alpha is being consistently made, your portfolio may be being disadvantaged on an after-tax basis.

Outsource of investment management, bookkeeping etc: Letting other people do the mundane components of your lifestyle plan can create many intangible benefits. Time poor is a major concern for most professionals, so eliminating the management of some of the less exciting parts is invaluabe. This also keeps you involved and excited in your lifestyle plan as low cost work is removed. It is very important to make sure that the outsourcers are professional and reputable.

Use of technology and cloud computing: Technology is allowing greater flexibility in the delivery and reporting of information. No different in the constructing, implementing and reviewing of your lifestyle plan. You can be anywhere and still communicate with your advisers.

Make investments for tax deduction purposes, in the belief you are saving tax: A fallacy for investment purposes. Saving tax is appropriate, wasting cash flow is not. All investments need to satisfy rigorous due diligence. If a tax advantage can be made – fantastic. If an investment makes no money except for a tax deduction, you are going backwards and this should be avoided.

Want more information on how you can increase your wealth and protect your assets?

Instantly download the FREE Archer Gowland Guide (below) "Wealth Creation to Fund Your Ideal Lifestyle - A FREE Guide for Partners of Professional Services Firms." We provide an indication of how much you will need at retirement, the changes in ATO interpretation of partner remuneration, how to generate tax efficiencies, market opportunities, a self-assessment of your financial situation and how to establish your own personal wealth plan.

You are also welcome to contact Ian Walker from Archer Gowland on 07 3002 2699 for a free and confidential discussion regarding your personal situation.

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