The beginning of a new financial year is a good time to put things in perspective and review your financial affairs. Here we provide some tips to help you remain on track and keep your financial goals in sight this financial year.

1. Review your investment portfolio

After the market lows of 2008/09, and continued volatility over the last financial year, most investors would have seen the value of their investments change.

If you chose to invest in a mix of asset classes to achieve certain income and growth objectives, and your asset allocation has changed significantly, you may need to review your portfolio. For example, if your portfolio had 40% shares, but its value increased, the shares may now comprise of 45% or 50% of your portfolio, meaning it's overweight in shares.

While this may not be an issue in the short term if the market corrects itself it may leave you investing in a way that is not in line with your attitude to risk. It could also mean that you may not get the results you want over the long term.

Regularly reviewing your portfolio with a financial adviser can ensure it is appropriately allocated to each asset class to achieve your goals.

2. Review your financial goals

If you have added to your family, changed jobs or moved closer to retirement, then chances are you will have different financial goals.

Changes to your situation could mean you need to revise your financial strategy or look to different investments better suited to achieve your goals.

Writing down what you want to achieve in 2010/11 and beyond will give you clear financial goals. You may wish to discuss these with a financial adviser to help you decide how best to realise them.

3. Protect yourself

You've worked hard to get where you are, so it's important to keep your personal insurance up to date to protect your assets and income.

If your circumstances have changed, for example you have a new child or your income has increased, you may find you need to ‘top-up' your existing cover.

If you don’t have insurance or a safety net of cash, you risk having to sell assets if something unfortunate happens such as an accident or illness.

Reviewing your existing levels of insurance (inside and outside of super) each financial year can mean you and your family remain covered should unexpected events occur. Learn more about types of insurance

4. Update your will and estate plan

Did your personal or family situation change during the year? If so, you may want to update your will and estate plan to reflect these changes.

You may also want to review your will if certain people are named to receive certain assets or amounts of cash.

Due to changes in financial markets over the last few years, these assets may now be worth more or less than they were when you prepared your will. For example, if you nominated your son to receive $100,000 and daughter to receive shares which were of the same value, those shares may now be worth more than the cash, meaning an unequal division of assets to your children.

Updating your will regularly can ensure all aspects of your personal and financial situation are accounted for and your current wishes carried out. Learn more about estate planning

5. Consider your debt levels

In the last financial year, the official interest rate has increased from 3.00% to 4.50%.

If you are concerned about rising interest rates, you're not alone – but there may be options available to better manage or even use debt to your advantage.

Even in a rising interest rate environment, not all debt is ‘bad' and can be used to potentially improve your tax and wealth position if structured appropriately. Seek advice from a financial adviser if you want to find out if these strategies are suitable for you.

6. Keep your super in mind

Super still remains one of the most tax-effective long-term investments.

For this reason, it's important to keep your super working to its potential for the long term. You can't control how investment markets perform, but you can control the strategies and the mix of assets underlying your super.

Seek advice from a financial adviser on strategies that could maximise your super for retirement and minimise your tax now. These might include salary sacrifice or making personal contributions to receive the Government co-contribution. If you're 55 or over, you may also want to consider a transition to retirement pension that could gain you significant tax concessions. Learn more about investing in super

7. Take the stress out of tax time

Hands up if you want to reduce your tax liability this year?

You may be expecting to pay a tax liability for the year just past, so why not seek advice now about minimising tax this financial year? By starting your tax planning now, you can implement tax-effective strategies to take effect during the 2010/11 financial year and beyond.

These strategies could include re-organising investments into a trust structure, increasing super contributions, starting a transition to retirement pension or ensuring a redundancy payment is dealt with tax-effectively. Planning ahead is the key to making tax time as stress free as possible.

8. Give something back

If you have a charity that you've worked with or a cause that you're passionate about, why not consider setting up a planned giving program that will keep on giving.

This could be in the form of a charitable trust or private ancillary fund established through your will or during your lifetime.

Your donation will be invested with the income stream given to charity to help them continue their good work. You may also be entitled to a tax deduction for the money you donate. Find out more about charitable trusts

9. Seek advice

Make the most of 2010/11 by seeking advice from finance professionals.

A financial adviser can help you put strategies in place to grow your wealth over the long term. They can provide advice about investing, super and retirement planning.

Perpetual Private Clients helps individuals and families with all aspects of financial planning including investing, super and retirement planning, taxation and estate planning. Find a financial adviser 

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Perpetual Private Clients advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 44 000 001007, AFSL 236643. This article has been prepared by PTCo. It contains general information only and is not intended to provide you with financial or taxation advice or take into account your objectives, financial or taxation situation or needs. The taxation information contained in this document is not taxation advice and should not be relied upon as such. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional financial, tax and/or legal advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The information is believed to be accurate at the time of compilation and is provided by PTCo in good faith.