In our experience, we have encountered some common financial mistakes by taxpayers which we have outlined below. Where unaddressed, these issues can be costly in particular in event of a pandemic, like COVID-19. This can lead to overpaid tax, missed investment opportunities and unacceptable risks.
1. Lack of detailed budget
This leads to inadequate investments, future debt challenges and missed growth opportunities
2. Insufficient or non-existent tax planning
This leads to overpaid tax and even potential penalties.
3. Unplanned superannuation
This creates sub-optimal returns, poor structures and insufficient balances when needed as an income stream for a stress-free retirement.
4. Poor asset and income structures
This leads to lack of protection for major financial assets and higher tax costs.
5. Insufficient debt structure
This results in excessive, non-deductible, personal debt, lost deduction claim for you and your business. Hence, this leads to a higher tax burden for years to come.
6. Insufficient insurance coverage and structure
This leads to personal, financial and career risks and major family financial pain and hardship if things go wrong. Say in the event of a pandemic, like COVID-19, significant losses may be incurred where no insurance was put in place beforehand.
Are you making any of these mistakes? Just as importantly are you even aware if you are making these mistakes or not? If you’re not even aware then you’re in the majority because most people don’t prioritise their wealth, choosing to focus on personal and work matters.
Here, at NZ International Tax & Property Advisors Ltd, our team’s mission is to help taxpayers preserve and grow wealth via sharing our expertise and knowledge in our family office. We do that by applying our unique wealth model: Educate, Protect, Grow and Enjoy.
Book a free 30min consultation with us to see how we can assist. Visit https://www.nztaxprop.co.nz/book-online for booking. If you’d like to find more about our training courses, visit https://www.nztaxprop.co.nz/tax-accounting-training.
Disclaimer: No liability is assumed by NZ International Tax & Property Advisors Ltd for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.