Wealth Creation - An Overview
Wealth Creation is based on the desire to improve ones financial position, achieve financial security and is most often driven by two primary emotional concerns:
- "What are my children going to do in the future?" - The increasing cost of living, especially housing affordability; and
- "How am I going to afford to retire?" - The Government's ability to fund our retirement is reducing year by year. According to the latest Australian Bureau of Statistics figures only 4% of retirees have a family income over $41,000 and 84% of retirees have an income under $21,000!
To Create Wealth you need to identify:
- Your primary emotional concerns & desires;
- Your current financial parameters; and
- Develop a financial plan; a financial solution to your concerns & desires within your current financial parameters.
Financial Security
- To achieve Financial Security we must Create Wealth;
- To Create Wealth we must Invest;
- To Invest we must implement a Plan;
- To implement a plan we only need to start;
- Start Now - before it is too late!
What is an Investment?
- An investment is an income producing asset that will be sold or restructured as required to improve financial security.
- If an asset does not, or can not, produce an income (gold, vacant land, etc) it is speculation not investing; and
- If an asset will not, or can not be sold (family home, art work, etc) it is a life style asset not an investment.
We need to understand:
- What is an investment and what is not an investment;
- The difference between an investment & a tax strategy;
- What makes an investment a good investment; and
- How to choose a good investment.
Why we use Residential Property as our preffered Investment?
Shares: Property has lower risk & higher gearing = better Real Outcome.
Cash: Property has growth & tax advantage = better Real Outcome.
Brand New Residential Property: Generally considered the BEST form of investment available for wealth creation in Australia. By best we mean;
- Higher than average returns,
- Lower than average investment risk,
- We can borrow more against it giving greater leverage;
- Tax effective;
- Easy to understand; and
Simple to do and worry free with our help!