Life Event: Starting a new job



Getting financial advice before starting a new job


You’ve gone through a gruelling interview process, references are checked and the only thing remaining is your signature, but what about the remuneration structure, is it the best possible outcome for your future?


Marcus Ainger of Prime Financial Group said while getting the right job offer is an exciting prospect, executives often forget the benefits of having an independent adviser review the pay structure and advise on tax minimisation strategies before pen meets paper.


“When moving into a new job, take the time to understand the potential for financial trade-offs between current income and the prospect for future wage growth and the riskiness of this wage growth, as it will pay off in the long run”.


It’s also important to make sure your income protection and other personal insurance needs reflect your situation.


“If your income increases, it’s important to ensure that your income protection policy reflects this change”.


You may also need to increase or decrease the waiting period on your policy depending on whether the employer has any cover.


“Check with your insurance company to change your waiting period. For some, by changing jobs you may even be able to do this without going through underwriting”.


Learn More: Prime Financial Group’s Life Insurance Services


Marcus said the long-term goal is to develop a structure to build on investment wealth combined with strategies to off-set a higher tax burden.


“A new job is an ideal opportunity to review your entire financial plan and to revaluate your current super funds and contributions along with other investments” says Marcus.


Related Post: When was your last financial review?


Marcus has helped many clients deal with the complexities of self-managed super funds (SMSFs).


“I often recommend SMSFs as a possible controllable option for high earners, providing higher returns along with lower entry and exit fees”


Marcus adds that “salary sacrificing into super is often overlooked, but is one of the most effective ways to reduce personal taxable income.” With the higher individual tax rates there are massive savings to be achieved. “The more you can salary sacrifice into super, the greater the personal tax saving becomes.”


“That said, with the new caps on Super, we are seeing a lot of focus on alternative investments”.


Related Post: Why self manage your super?


“These issues create opportunities for planners to develop alternate investment strategies where superannuation is one component of retirement savings rather than the sole vehicle.”


“A trust can be used to build wealth using a tax-effective financial strategies, by decreasing the tax burden”.



This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.


For more information on how you can put your new salary to work to secure your financial future contact Marcus.





About the Author:

I work primarily with high net worth individuals and business owners, advising on wealth management, asset protection, superannuation and investments. I have an in-depth knowledge of superannuation as well as associated tax and estate planning issues.