Accountants Advice – an insight into Saving and Building Wealth
Saving – Putting Cash in the bank that loses value once inflation eats into it
Financial Planning – Making your Savings work a bit better for you. Includes:
- Managed Funds
Investing – Includes Borrowing money and letting other people pay the interest on it.
Investing is the next step up from Financial Planning
– It is not taught to you by Financial Planning Organisations
– It is not encouraged by Financial Planning Organisations
Investing is how the average person achieves Financial Independence.
If anyone can convince me that you can achieve a greater dollar return on your original amount of cash using either saving or financial planning, when compared to borrowing for a sensible property investment, I will buy them a bottle of Penfolds Grange.
Building your wealth must be done sensibly, for example
Storm Financial Group included a lot of dangerous lending using financial planning products. BAD
Commonwealth Bank Financial Planners weren’t, and probably still aren’t, allowed to recommend their clients purchase an investment property. Commonwealth Bank is the biggest lender in Australia for housing. Is owning a house suddenly an inherently dangerous thing? It doesn’t make sense, or is there another hidden reason why they won’t allow it? WEIRD
Mum and Dad, empty nesters. Subdivide and build in your back yard. You now have 2 homes, each now worth around the same as the original, providing a rather large increase in equity and a good additional income source. SIMPLER THAN EXPECTED AND OFTEN VERY PROFITABLE
In Australia from now until around 2024 you can fight it and miss out, or you can follow the trend.
Ensure you become educated about the Investment Cycle so that you aren’t caught out by the next major crash, due after the property market next peaks around 2026.
Ph 03 9720 9880