The importance of keeping a record of your investment purchase history

While your focus is often on selecting the right investments, in our experience, an aspect that is generally neglected is the importance of maintaining a detailed record of the purchase history of investments. Keeping a record, or "Asset Registry," not only offers clarity and organisation but also provides several key benefits that contribute to a more informed and successful investment journey.

1. Tracking performance:
   Recording the purchase history of your investments allows you to monitor their performance over time. By maintaining a comprehensive log of when and at what price you acquired each investment, as well as any changes made from corporate actions over the years, you can easily calculate returns and assess the overall profitability of your portfolio. This insight is invaluable in you making informed decisions about whether to hold, sell, or adjust your investment strategy.
2. Tax planning and reporting:
   Accurate and organised investment records are crucial when it comes to tax planning and reporting. The purchase history of your investments helps in determining your cost base, which is essential for calculating capital gains or losses. This information is vital for filing your Income Tax Returns and can potentially result in tax savings. Having a clear record also facilitates a smoother process in the event the Australian Tax Office requests information to support the amounts reported in your tax returns. Your investment journey is a learning process, and documenting your purchase history serves as a valuable educational tool. We can provide you with a flexible and convenient tool to use and build on as you continue on your investment journey.
3. Estate planning:
   Keeping a record of your investment purchase history in an Asset Registry plays a pivotal role in estate planning. It allows for all your information to be summarised in one area, easily accessible by the Trustee of your estate. It will provide your beneficiaries with a clear understanding of investments, aid in any tax calculations and minimise the costs for the administration of your estate.

Our team is here to help you in creating and managing a comprehensive record of your investments. We can help you navigate the intricacies of taxation, and can assist you in obtaining advice from a qualified financial planner.

For assistance building an easy to use Asset Registry catered to your needs, please contact your usual Mazars advisor, the authors or our specialists via the form below or on:

Author:  Richard Russell and Andrew Politini

Published: 29/02/2024

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