Leverage and Risk When investing, it is important to get the right mix of equity to borrowings – Gearing or Borrowing can be a great friend or similarly it can also be the sword that fatally wounds you. When considering risk factors, things such as age, income...
Compounding Compounding is a product of time, i.e. the multiplying effect of gaining an investment return on your previously earned investment return. That is, interest on your interest. We always recommend that you seek professional advice as this blog is for general information only...
Commodity Trading Commodity trading covers any of a range of markets such as Currencies – Futures – Direct Commodities like cotton, wheat and soya bean and basically anything that has a tradeable market. This type of trading is normally very active and can have very high returns if...
Business As with the other categories, businesses are very diversified and can range from owners buying a job just to maintain their existence, to highly profitable international businesses. They can come in the form of: Wholly owned individual businesses Partnerships Companies – large and small Joint venture...
Property Property is the most understood form of investment as it is tangible – you can walk through it, touch it, alter it, insure it and even demolish it. On the other hand, it can be vandalised, burnt down, flooded or simply neglected. Property comes in...
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 ...