Investment Planning and Wealth Creation
Investment Planning is the process of identifying and implementing effective investment strategies to create and accumulate the financial resources in order to achieve your financial goals.
There are many different strategies that may be used within the Investment Planning and Wealth Creation process, such as dollar cost averaging, using borrowed money to create wealth, tax-effective options to invest for your children, and utilizing losses to reduce capital gains tax.
Margin Lending and Gearing
Gearing (or using debt to invest) simply means using other people’s money to help increase your wealth more rapidly. It allows you to acquire more assets than you could if you only use your own funds, with the expectation that over time, the rise in capital value of the underlying investments will exceed the costs involved.
Margin Lending/Gearing allows you to borrow money for investment purposes by using your approved existing shares, managed funds or cash as security. By leveraging against your existing assets, you can potentially improve your investment returns and reach your financial goals sooner. Potential benefits of gearing may include increased capital gains and diversification and tax savings.