One of my first jobs was at a financial advice firm. It quickly became apparent that being financially ‘healthy’ and creating a comfortable life reaches far beyond having your investment ducks in a row. There’s moving parts – tax, estate planning, debt structuring, asset structuring, cashflow management. None of these moving parts draw people in like investing does.

Investing can be exciting. It can particularly be exciting for people who are drawn to the eye-watering returns that they see in investing groups and marketing material from fund providers.

This month, I focused on some topics peripheral to investing that contributes to financial health. I also focused in on some of the building blocks for investing and some of the most common questions from investors who are starting out.

Financial health

The average Aussie now earns enough to push them over the Medicare Levy Surcharge (MLS) threshold. This means that they’re up for more tax unless they take our private health insurance. My article goes through the financial considerations.

One-third of Australians’ wealth is held in property. There are two main reasons that property has been a good investment – the capital appreciation and the leverage that has increased this return, and the tax benefits on investment properties. Overall, equities have also had impressive appreciation over the long-term. What about the second part of the equation? I put togetheran article of the main tax deductions that shares have.

Your net worth should be reviewed every 6-12 months. As we have just entered the new financial year, it may be worth reviewing or putting together your net worth. It gives you a clear snapshot of your financial health.

Building blocks

A two part series on lessons that I wish I knew earlier as an investor, and resources I keep going back to.

How hard is it to pick between two identical ETFs? I look at exposure to the ASX 200 as an example, and look at how investors should compare their options.

Most Aussies have superannuation. A large question is how much is a healthy balance to have at your age. Superannuation providers love to publish these lists because investors love to read them – they love to know how they compare to the average Aussie. I look at how much you should have in your super.

New investors are inundated with the amount of investment products to choose from when they first start out. One common toss-up is between micro-investing apps and ETFs. I compare them here.

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