Cashflow
Cashflow is king
Earned
Cashflow earned during the course of working.
Taxes paid upon earned cashflow from standard to marginal rate.
Cashflow is vital as it indicates the viability of a business (as opposed to Revenue, which indicates the effectiveness of the companies sales and marketing activities).
Earned Cashflow is The Paycheques required to service and pay for the necessities.
Passive
Passive income is income that requires little to no effort and is constantly being transferred into your own account.
Passive Income can be realised through various SPV’s.
Asset Backed, Government Backed Investments such as Zero Tax Property are an ideal vehicle to generate income as they offer MINUMUM returns of 8-10% over 25 years with 0% Tax on the income AND 0% Tax on the rental growth.
Retirement
Retirement Contracts offer another method of cashflow.
Retirement Contracts / Pensions are a tax efficient way of saving for the retirement years but there are a number of various structures that must be considered depending on each individuals Employment Status (Company Director, Sole Trader / Self Employed, Employee) and their age.
There are 4 main types of pension:
- – Executive / Occupational Pension
- – PRSAs
- – Personal Pension
- – Buy Out Bonds / Retirement Bonds
Advice should be sought from a Financial Advisor about the correct type of pension for your particular set of circumstances and income that can be expected from each type.
CONTACT HOSPITALITYWEALTH NOW TO HAVE AN INTRODUCTORY CONFIDENTIAL CONSULTATION, DONE AT OUR EXPENSE, TO SEE HOW WE CAN ASSIST.
Tax control
Special Purpose Vehicles (SPV’s) are an entity created to fulfil a specific, designated activity.
S.P.V.’s isolate risk and ensure that its legal status is separate.
Holding Companies are SPVs and are a way of sheltering income in a tax efficient and legal manner.
S.P.V.’s assist with Asset Protection, Turnover, Cashflow, Profitability and E.B.I.T.D.A. (Earnings before Interest, Tax. Depreciation & Amortisation). All these things must be considered and planned whilst looking at Tax Control.
To create F.I.R.E., you must:
1.Strategise,
2.Income Flow,
3.Tax Control.
Ready to take it to the next level?
Contact us to see how we can help you.
