Top Wealth Protection Tips for 2025

Like many people, you may be worried about money, especially with growing inflation and the rising cost of living. If you’re looking to achieve long-term financial security, it is essential that you manage your finances effectively and safeguard your hard-earned wealth, to ensure that you maintain financial stability in the current unpredictable economic climate.

Here are our top wealth protection tips to help you protect your wealth from potential risks in 2025:

1. Diversify your investment portfolio.

Diversification is key to safeguarding your investment portfolio and protecting it against risks and uncertainties. By spreading your investments across a range of different asset classes, you reduce the level of risk involved. Particularly in times of market volatility, this makes it less likely that any one investment will have a major negative impact on your overall wealth, compared to if you invest all of your money in one asset class.

Aim to invest your money across a diverse range of investment types and asset classes to spread your risks. For example, if you invest in shares and equities, investing in a mix of Australian and international stocks across different sectors (for example, finance, healthcare, and technology) can help to reduce your level of risk.

Also consider investing in bonds or fixed interest securities, which can offer stability, or assets like private equity, venture capital, or hedge funds, which can offer high returns with different risk profiles. Investing in property or property investment trusts (REITs) can also be a great way to diversify your portfolio.

2. Grow your superannuation.

In Australia, super funds are the main way in which people save for retirement. Employers are required to make mandatory contributions to your super fund. Your employer will pay a percentage of your earnings (currently 11.5%) into your super fund, who will then continue investing the money. The money in your super fund will then continue to grow until you retire.

To help secure your wealth for the long term, there are a few stepsyou can take to protect and grow your superannuation. Consider increasing your super contributions through either voluntary payments or salary sacrifice, so that you are paying more into your super.

Also, review your fund’s performance regularly to make sure the investment strategy (for example, conservative, balanced, or growth) aligns with your risk profile and financial goals. If you haven’t already, you might want to consolidate your super into one account. A lot of people have multiple super accounts, which can mean you end up paying more in fees, so consolidating your super all into the one account can help reduce fees.

3. Build an emergency fund.

Building your emergency fund is another valuable wealth protection strategy. Having an emergency fund ensures you are prepared for those times in life when you find yourself with an unexpected expense – for example, a medical emergency, job loss, or unanticipated car repair. Having an emergency fund will mean you do not have to rely on credit cards or loans the next time you find yourself with an unexpected expense to pay. It will also mean you do not have to dip into your savings.

Aim to save up three to six months’ worth of expenses, which ideally could be invested in a high-interest savings account.

4. Minimise your tax liabilities.

There are a number of things that you can do to reduce your tax liability and protect your wealth, by ensuring you get to keep as much of your hard-earned money as possible.

One option is to increase your super contributions through salary sacrifice, so you are contributing more of your pre-tax income into your super. This can help reduce your taxable income while also boosting your super balance. Some other ways to reduce your tax liabilities whilst growing your wealth include investing in tax-advantaged accounts like a self-managed super fund (SMSF) or funds or investments that provide tax-free growth, taking advantage of the capital gains tax (CGT) discount for long-term investments, and leveraging negative gearing when investing in income-producing assets. Establishing a family trust can also potentially lower your overall tax liability.

Although these strategies can all be useful in helping you reduce your tax burden, they can come with varying risk profiles. Consider consulting with an accountant or financial adviseor to ensure you are able to minimise your tax liabilities effectively and in a legally compliant way.

5. Protect yourself against threats.

Cybersecurity risks and scams are a growing concern, with many people falling victim to financial scams each year. To protect your wealth, it is essential that you safeguard yourself against cybersecurity threats like hackers and cybercriminals who may threaten your wealth.

There are a number of things you can do to avoid losses. Ensure that your devices are protected with strong passwords, and enable two-factor authentication (2FA), which adds an extra layer of security by requiring you to verify your identity in another way, such as through an email code, text message, or authenticator app. Install an antivirus program and run regular virus scans, and avoid using unsecured or unfamiliar platforms for online transactions to safeguard your funds. Also, regularly check your bank accounts for unauthorised activity to ensure that any suspicious transactions are picked up early.

6. Ensure you are covered with the right type of insurance.

Life can be unpredictable and there are a lot of things that can go wrong. Therefore, it is important that you make sure you have the right level of insurance coverage to protect yourself, your family, and your assets in the case of accident, illness, or other unforeseen events.

Some of the types of insurance you might want to consider include life insurance (to protect your family if something happens to you), income protection insurance (to provide you with income if you are unable to work due to illness or injury), total and permanent disability insurance (for if you are unable to work anymore due to an injury or illness), and home and contents insurance (to ensure your home and valuables are protected against theft, fire, and other risks).

7. Consider estate planning.

Many people spend their lifetime growing their wealth to pass on to their loved ones. But without proper estate planning, you may find that youryou wealth is subjected to high tax rates, which may mean your loved ones end up receiving only a fraction of your overall wealth.

Making a legally binding will is one way to ensure your assets are distributed correctly amongst your beneficiaries. You may also want to assign a power of attorney, who is someone you trust who can make financial decisions on your behalf if you become unable to do so. Also, make sure that you have nominated a beneficiary for your superannuation to ensure it goes to the right person. You may also want to consult with an accountant to see if another type of asset protection structure, such as a company or family trust, can help you to better protect your assets and safeguard your wealth.

As you can see, there are a number of things that you can do to protect your wealth in 2025. By being proactive and taking a comprehensive approach to wealth protection, you can safeguard your wealth from risks and uncertainties and set yourself up for financial success in the long run.