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Creating Your Financial Security

What Is Wealth?

Wealth as a concept means different things to different people, but common to all definitions, is the desire to assure your financial freedom and achieve your financial goals.

For some this may translate to following an investment strategy, for others it may mean being able to retire early, paying off their mortgage or something as simple as setting up a savings plan.

Why Build Wealth?

Wealth provides financial security and choice which gives you financial control, which in turn enables you to enjoy the lifestyle you desire and provide for those you love.

If you do not create your own wealth, you will end up having your lifestyle controlled by others, especially in retirement, and as the population ages the range and quality of services available, especially from government, is expected to continue to decline.

When you look at the difference between where you are today and where you want to be reaching financial independence can seem unachievable and it becomes easier to find all the reasons why you can’t, and to look back with regret at past opportunities rather than take action to change your situation.

Starting to create your own wealth today may be one of the most important decisions you will ever make and whatever your financial goals, FAAR is committed to helping you achieve them because it is never too late to start this process.

Leverage

Just as you can borrow to purchase a home or car, you can borrow money to help fund your investment strategy.   Borrowing to invest is known as gearing, which helps you accumulate wealth faster by increasing the total amount you can invest. In other words you are investing someone else's money in addition to your own which can help to provide you with greater growth and potential tax advantages.

Gearing is commonly used for purchasing a rental property or share portfolio and/or investing in managed funds.  It is important to remember that as with any investment strategy there are risks associated with gearing, and for that reason you should seek independent professional advice.

Another option for small investors wishing to build wealth through property is the use of Property Trusts.  Trusts often offer a diverse range of investment options, including residential property as well as commercial and industrial properties and you can invest in a Property Trust through the Australian Stock Exchange.

 

For further information or a consultation please do not hesitate to Contact FAAR

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