Wealth Strategies

These days there is so much information on investing and building wealth, it’s hard to know where to start. And there is a lot more to it than choosing the right investments.

While choosing a good mix of investments is extremely important, there are also many other strategies to boost wealth, minimise tax and maximise savings. These include:

• budgeting and debt management
• gearing
• investment opportunities
• superannuation strategies
• insurance

What strategies are suitable for you will depend of your financial situation. A financial adviser can help you look at what’s important to you and build a plan to help you make the most of your financial situation.

Adopting Effective Wealth Strategies

Adopting an effective wealth strategy means looking at your unique situation and building a plan around that. This will cover strategies for budgeting, saving, investments, superannuation, insurance and protection and even Wills and estate planning.

The best way to make a comprehensive wealth creation plan is to sit down with a financial adviser. A financial adviser can help you decide where to invest your money, ensure you are taking advantage of financial opportunities, minimising risk and avoiding common mistakes.

Insurance in Plain English

Insuring your family financially against accident, injury and death is an important part of any financial plan. After all, you work hard to build wealth so you should make sure it’s protected in case things don’t go according to plan.

You wouldn’t hesitate to insure your car, so why not think about your other important assets such as your life, your ability to earn an income and your family’s financial wellbeing in the same way?

If something happened to you or your family and you couldn’t work, your finances are the last thing you’d want to be worrying about. That’s why there are a range of insurances available to keep you and your family on track in case of accident, illness and death. Of course choosing the right insurance and level and combination of cover can be tricky so talk to your financial adviser today to ensure you’re properly protected.

Gearing in Plain English

Borrowing to invest, also known as gearing can help you accumulate wealth faster by investing someone else’s money in addition to your own. This is because you benefit from the greater growth of a larger investment.

Although there is a cost to investing borrowed money, if the investment produces a better return than the interest payable on the loan, then you benefit from the up-side. Conversely a fall in the value of your investment will also be magnified by gearing. Entering a gearing arrangement should only be done as part of a considered, comprehensive financial plan including appropriate income protection and other insurances. Although gearing has the potential to build wealth faster, it isn’t for everyone because of the risks. It is for this reason you must seek professional advice.

Income Distributions

Distributions are income payments made to managed fund investors made up of income from the underlying investments held by the managed fund. These could be shares, property, bonds and/or cash, which is why the distribution could include interest earned, franked and unfranked dividends, tax deferred income from property, and any realised capital gains made from selling the investments. Reinvesting distributions is a very effective way to build wealth, it is the power of compounding returns. Talk to your financial adviser.