Debt management is an area of financial advice that is often not addressed by Financial Advisers/Planners.
Incorrect debt structuring and management can cost you hundreds of thousands of dollars in unnecessary tax, interest, and product fees.
Debt used to purchase non-investment, or lifestyle assets, such as cars, boats or the home you live in, is usually referred to as bad debt. This debt is not tax deductible so the interest can’t be offset against your personal income to reduce the income tax you pay.
Debt used to purchase income-producing assets, such as property or shares, is usually referred to as good debt. The interest costs associated with these assets can offset the amount of income tax you pay. This reduction in personal tax helps fund the holding costs of the assets, making further investment possible.
Nexus can thoroughly review your financial situation and investigate the most efficient methods for replacing bad debt with good debt. Your financial position can be improved by reducing loan terms, reducing tax payable and reducing interest payable.
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Nexus Private Wealth Management is made up of the following companies: Financial Planning Advice is provided by Nexus Private Financial Planning Pty Ltd – ABN 58 159 649 055. Authorised Representative of Madison Financial Group Pty Ltd (MFG) – ABN 36 002 459 001 (AFSL No. 246679) | Investment Property Advice is provided by Nexus Private Property Servies Pty Ltd – ABN 52 159 828 038 (REA no. 3565454) | Lending services are provided by Nexus Private Lending Services Pty Ltd – ABN 37 169 705 926 (ACL no. 463839) | Accounting and Taxation services are provided by Nexus Private Accounting Services Pty Ltd – ABN 84 169 784 329 (RTA no. 25331778)
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