Simple Certainty | Protecting Your Wealth Through Investment Structures

Wealth that grows, and wealth that’s protected. These are the two most important financial concerns for our clients. And if you’re interested in retiring to comfort, they’re important to you too.

In this instalment of Simple Certainty, we’re talking about two very important financial aspects – perhaps the most important financial aspects: building wealth and preserving it. Having previously taken a brief look at what goes into developing a financial plan, we’re now going to take a deeper dive into one core component:

Investment structures.

The right investment structures provide reassurance, confidence

Building wealth isn’t easy. In fact, the job is never done; we spend the bulk of our lives doing it. At the end of the day, what we crave most is reassurance and confidence that our hard-earned wealth is invested in a way that safeguards it for today and tomorrow.      

Investment structures play a massive role in providing this certainty. Here’s why.

What do we mean by investment structures?

Basically, investment structures refer to the way in which your investments are legally owned. There are six entities to choose from:

  • Individuals
  • Join ownership
  • Partnerships
  • Companies
  • Superannuation fund
  • Trusts

The entity you choose will have an impact on your investments’ future returns. Specifically, by the amount of tax you pay.

Which is the right investment structure for me?

Good question. The answer depends on your circumstances (like all things financial). Several factors need to be considered when deciding on the most appropriate investment structure for you. Let’s take a look at them.

  • Employment status. Are you still working? Are you self-employed? Do you run a small business? The structure of your work life plays a massive role in determining the best investment structure for you.
  • Estate planning. What issues need to be addressed around family and inheritance? Are there any special considerations related to who should own assets?
  • Tax. This is a big one. What are the tax implications of the investment structure? And will it provide flexibility with respect to accessing capital, income, imputation credits, etc?
  • Safeguarding. It’s not something we like to think about, but families can have breakdowns, and creditors can come knocking. We need to find the structure that protects your assets in a legally-compliant manner against unforeseen contingencies.

As you can see, finding the right investment structure is hugely important when it comes to growing and securing your wealth. Not only are the benefits profound, but the wrong structures can have seriously negative impacts on your investments – in some cases slashing your after tax returns by up to 50%.

Take the holistic approach

The wealth we accumulate today is not just for our future, but for the generations to come. Securing it is a major concern for all of us, and investment structures are an important method of doing so.

Working with a financial adviser who takes a holistic approach to your situation is the best way of ensuring you make the right selection. With your investments structured in the most appropriate manner, you can have the confidence and certainty that your assets are not only protected, but growing – for your retirement, for your children and for future generations. 

That’s it for our deep dive into investment structures. Make sure to call us on (03) 9835 3800 to book your personal appointment. Also please remember to like, share, comment and subscribe so you don’t miss the next instalment of Simple Certainty.


Please note this is general information only and you should always seek your own personal

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