Page 10 - Wealth-Adviser-Issue-124 (FWP)

ISSUE 124
NOVEMBER 2025
Ask a (like credit cards or personal loans), paying these off often

delivers the best value, interest saved usually outweighs
Q&A: Question likely investment returns. For lower-rate debts, like many
home loans, take a closer look. If you can achieve long-term
investment returns above your loan rate, investing could
build wealth faster albeit with more risk, especially inside
Question 1: tax-effective environments like superannuation or diversi-
Are there any benefits to setting up a family trust for my fied portfolios. Other considerations include risk tolerance,
investments or business? your stage of life, and job security. Reviewing your personal
A family trust can help you manage both investments goals, cash flow, and interest rates with your adviser can
and business assets more flexibly. One key benefit is tax help you decide which path or blend best fits your financial
efficiency as income can be distributed to family members strategy and keeps you moving forward
in lower tax brackets, potentially reducing the overall tax
paid. Trusts also provide strong asset protection; assets held Question 3:
in a trust are separate from personal ownership, which can How does estate planning fit into my financial plan and
help protect family wealth against legal claims or business what should I discuss with my adviser?
risks. Trust structures often make succession planning much Estate planning is a crucial part of your wider financial
smoother, ensuring assets pass to beneficiaries according to strategy. It’s about ensuring your assets including super,
your wishes and reducing complications later. Still, trusts investments, and insurance are protected and passed on
aren’t simple; there’s ongoing administration, costs, and the as you wish, in the most efficient and tax-effective way
need to meet strict tax rules. Setup must be well planned possible. Some areas where advisers add real value include
and managed. Trusts work best for families with complex helping you review and update beneficiary nominations,
finances, businesses, or those wanting clear intergeneration- aligning asset ownership (like joint holdings, trusts, or
al plans. Advice from an experienced professional can help superannuation) for seamless transfer, and understanding
you weigh the costs and benefits based on your long-term powers of attorney for decision-making if you’re unable to
goals. act. Life events such as marriage, divorce, births, or blended
families are key triggers to update your plan. Good estate
Question 2: planning also reduces the risk of disputes among beneficia-
Should I use extra savings to pay down debt or invest for ries or unexpected tax issues. An adviser works alongside
the future? legal experts to blend estate, tax, and investment needs
It’s a common dilemma: use spare funds to reduce giving you clarity and peace of mind that your legacy is well
debt, or invest for growth. If you have high-interest debts looked after and your loved ones are supported.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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