Shares Shares are normally highly liquid. They have both income and growth characteristics and come in a myriad of styles. Shares are intangible and are a notional way of dividing up a company’s performance and profits into small parcels that are offered to investors to fund...
Cash By cash we mean the holding of liquid money at short to medium term rates. The following are some examples of cash investments: Cash management accounts Term deposits Registered mortgages Government bonds Promissory notes Bills of exchange Annuities (Swiss annuities) Cash investments are considered low risk...
I = INVESTMENT Sometimes in the investment world you are going to make good decisions and sometimes you are going to make bad decisions. However, there is one thing that is certain. The higher your level of knowledge on a particular topic, the lower your risk...
Save 10% of Your Gross Income Although this is such a simple strategy, it can be the most powerful and successful strategy. The following example shows clearly how, just using this one tool, a tradesman could do what he loved to do for 40 years in the...
The Wealth Formula Here are some helpful tools that can be applied (regardless of which wealth creation course of action you decide to take). Wealth or financial freedom is a product of planning, saving, investing and time. Put simply, this is: W = (P + S + I ...
According to your latest figures, if you retired, you could live very comfortably until about 2 pm tomorrow. It is clearly obvious those who don’t want to be living on the poverty line in the future, need to be making sound financial decisions in order to...
Frightening Statistics It is now a common realisation that Australians have to plan for their own future and retirement as our economic situation is not going to handle the explosion of ‘Baby Boomers’ hitting the pension market. In the 1950’s and 60’s there were eighteen taxpayers...
Accumulating your GST in a credit facility If you accumulate your GST and pay it every three months, put your GST money in there. Loan it in. Put it in your line of credit facility so you’ve got less money owed on that nondeductible debt for...
Where does the money flow? If your money’s all over the place and it’s sitting in bank accounts maybe in one where the rent’s come in, and another one, which is a savings account, where does your money actually flow? What you want to do is...
Tax deductions on your investment properties Other things that you might like to look at from a cash flow perspective is your tax deduction on your investment properties. If your investment property through depreciation and perhaps negativity on a cash flow basis, means that that property...