RSM Australia

Wealth accumulation

What are your wealth accumulation goals? Arguably one of the most important aspects of wealth accumulation and management is knowing what ‘you want to achieve’.

Since a low in 2002, Australians have been steadily increasing the amount of their households surplus income they allocate to savings. The trend also being supported by a substantial slowing in the average debt per person to 2% p.a. in 2013. The result is that Household Net Wealth in Australia is again climbing.

Like many Australians, you will have various reasons for wanting to accumulate wealth. Some of these may include:

  • purchasing a new or first home
  • future travel
  • increased passive (investment based) income
  • repayment of debt
  • lifestyle events (e.g. weddings or graduations)
  • education for your children or grand-children
  • early retirement
  • to support a disabled or disadvantage child or relative
  • home renovations
  • building a family legacy (estate benefit for your family)
  • philanthropy (gifts to charity)
  • a comfortable lifestyle in retirement

What is key to your success when accumulating wealth, is your understanding of what the purpose is for growing your wealth, how much you need to achieve each of these objectives and what the time frame is for each of these.

  • What’s the goal?
  • How much do you need?
  • When do you need it by?

Helping you make sense of the competing objectives and demands you have for you earned income and accumulated wealth is a key part of the RSM Wealth Creation Service. We aim to help you develop investment priorities and goals matched against a realistic timeline.

Your wealth management plan however, also needs to take into account your understanding of investment risk and how this may impact your investment decisions.

Personal Financial Advice Services is provided by RSM Financial Services Australia Pty Ltd (AFSL 238282)

Everyone’s circumstances are different and this website doesn’t take into account your personal circumstance, it is therefore important that you consider the above in light of your financial situation, needs and objects, and seek financial advice before implementing a strategy.

retirement

Retirement - How much do I need?

Retirement: a delightful word that conjures up images of days spent in slippers, volunteering to help others, rediscovering old hobbies, taking long cruises in the Mediterranean, or just enjoying your new found freedom.
Ethical investing is part of a broader approach to ensuring a sustainable future for generations to come.

Ethical investing with a clear conscience can be very profitable

Global coverage and media attention on climate change has fallen 59% since January 2020, so does that mean climate change is 59% less of a problem? Obviously not...
A focused investment approach

A focused investment approach

History has proven that a focused long-term conviction to an investment philosophy, robust processes, and quality investments will undoubtedly ensure enhanced security and long-term returns.  
Early Release of Super

Early release of Superannuation - short term gain for long term pain?

The Stanford Marshmallow experiment - a widely published psychological experiment, place a child in a room with a single marshmallow, promising them that they will get another marshmallow if they do not eat the first one for an unknown amount of time (usually between 10 and 15 minutes).

Using the Australian Stock Market as a crystal ball

It is late April and the Australian stock market is trading at around 5300 points or around 19% higher than recent lows, and around 22% below the market top in February.

Agreed Value Income Protection policies will be banned by APRA

1 April Deadline – Agreed Value Income Protection policies will be banned by APRA! Following a recent review of the life insurance market, APRA have announced proposed changes to income protection policies.

The power of a small investment into superannuation

You’ve recently graduated as a medical professional after years of hard work and endless hours hitting the books.  As tempting as it is to use your well-earned income on a feature-packed credit card and a new BMW, have you considered the power of a small investment into your superannuation? 

Downsizing to improve your income in retirement

Have you worked hard your whole life, but feel like you have not accumulated enough to fund your retirement? Well, downsizing could be the solution for you.

Downsizer Contributions - your choice of super fund matters

You’re thinking about moving home and expect to have some remaining funds after the move. You know about the downsizer contribution rule, you’ve read a few articles and you’re ready to go. Before you go any further, here's a few questions you might not have thought about.
Downsizer Contributions

Downsizer Contributions impact on the Age Pension

By making downsizer contributions, it’s important to be aware of the impact this may have on your Centrelink entitlements such as the age pension or for self-funded retirees, the benefits under the Commonwealth Seniors Health Card (CSHC).

Understanding the new and improved downsizer contributions rules

A variety of factors come into play when determining if you should downsize the family home.

Superannuation Legislation for High Income Earners

The Government has passed superannuation legislation for high income earners (with income exceeding $263,157 per annum) which allows employees with more than one job to choose not to have the 9.5% superannuation guarantee paid by all their employers.

Who needs insurance more - Raj or Wonder Woman?

Coming from different walks of life, when it comes to lifestyle protection, would Big Bang Theory’s Raj or Wonder Woman need insurance more? 

Young Australians beware of the impact of super without insurance

Most Australians breathed a sigh of relief in the 2018 Budget that few changes were made to super. The government did however place some focus on limiting the amount of superannuation being eroded by fees.

Why young Australians need to engage with super earlier

It’s common that many young Australians consider super and retirement as something they will deal with when they get older, with some delaying their interest and engagement for their ’50 something-year-old’ self to deal with.

Investment and broader financial planning implications

thinkBIG 2018 Superannuation whitepaper: discussing the real impact of the overhaul to the superannuation system - what now?

The Yin Yang of cash and its effect on income for investors

The Yin Yang, a symbol of two opposite yet complimentary energies is a concept that plays a significant role in the lives of millions of Australians who are reliant on cash for income in retirement.

The 3 Myths we are sold about the benefits of low-interest rates for Australians.

We all love the thought of low-interest rates generally because for us consumers it effectively lowers the cost of our monthly loan repayments. But what if what you gained on the front end, you were losing on the backend?

Could there be more to life insurance than death?

Every day you work hard to create the best possible lifestyle for you and your loved ones. This includes many sacrifices to ensure that you can achieve your financial goals like paying down debt, holidays aboard, children’s education and a comfortable retirement.

Invest regularly and ease your stress of market volatility

If you’re an investor considering entering the market with your hard-earned savings you may feel a little uneasy about placing a large lump sum into the market all at once. Especially when you think it could experience an extended period of market volatility.

Fundamentals of Financial Success | Pillar 5 – Structure your wealth

During this series we've discussed some of the fears that people have in making financial plans and decisions due to media grabbing headlines and world events and why implementing the fundamentals a financial plan can set you up for success. In previous parts of this series, we covered the first four key pillars.

Fundamentals of Financial Success | Pillar 3 – Inefficient debt

As discussed in part one and two of the series The Six Fundamentals of a Strong Financial Plan, it's important to remember that there are always going to be events that are happening locally or internationally that will impact financial markets.

Fundamentals of Financial Success | Pillar 2 – Personal risk

As discussed in part one of the series The Six Fundamentals of a Strong Financial Plan, it's important to remember that there are always going to be events that are happening locally or internationally that will impact financial markets.

Fundamentals of Financial Success | Pillar 1 – Manage your cash flow

With all the noise in the media and the constant barrage of headline-grabbing news around recent superannuation changes, it’s easy to feel overwhelmed and even confused about how all this will affect your personal financial success.

Off-Farm Super Investment Options

Investing in assets off-farm and away from your agribusiness can be a worthwhile strategy to diversify risk.

GESB West State Super - actions for self-employed members

Are you a self-employed GESB West State Super member? You may be entitled to unique benefits, but act now before they disappear after the 30 June deadline.

GESB West State Super - what changes are coming?

Super Changes affecting GESB West State members are coming from 1 July 2017. Find out from one of RSM's GESB superannuation specialists what to do before the 30 June deadline.

How to crystallise your tax free benefits in GESB West State before it’s too late!

It’s been argued that superannuation could be considered to be your number one investment asset heading into retirement. After your residential home, which for most is a lifestyle asset rather than investment, we are all looking towards superannuation savings or Centrelink to fund our retirement.

New superannuation legislation – where do you stand?

Government releases more superannuation legislation

Budget 2016 for Individuals

Key announcements There are very few Budget measures impacting on personal income taxes for individual taxpayers and families.  The key change for individuals is an increase to the threshold at which the 37% marginal tax rate for individuals commences.

Retirement planning: five steps to ensure a financially comfortable retirement

More baby boomers are likely to retire over the next few years, as Australia’s population ages. Unfortunately, many of these people will retire without having adequately planned for their post-work living expenses, according to RSM Australia.

A super source of wealth

Superannuation provides a tax-effective vehicle in which to accumulate wealth for retirement.  Individuals are provided with tax incentives to grow their wealth through contributions into super funds and have the ability to invest these contributions according to their attitude to risk.

Preservation age and building retirement savings

Commonly people see their retirement as the time to access their superannuation balances. However, when you can access your super benefits actually depends on your preservation age, which currently stands at age 55. This will be changing with regulations pushing the preservation age up to 60 for people born after 1st of July 1964.

What increasing life expectancy means to you

On average Australians are living longer. The majority of us see this in a positive light as it allows for further life experiences and more time with friends and family. Increasing life expectancy does however come with additional financial concerns, which continue to increase as the gap between retirement age and life expectancy grows.

This article has been prepared by RSM Financial Services Australia Pty Ltd ABN 22 009 176 354, AFS Licence No. 238282.

As everyone's circumstances are different and this article doesn't take into account your personal situation, it is important that you consider the above in light of your financial situation, needs and objectives, and seek financial advice before implementing a strategy.
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