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Advantages of property investment

PROPERTY INVESTMENT

Property investment in Australia is perhaps the most common form of investment outside of our superannuation accounts. It seems that our obsession with the great Australian dream (owning our own home) seems to extend to our investing psychology as well. You can’t go wrong with bricks and mortar as they say! Right? Well, sort of… Property is like any asset – it will fluctuate in price depending on what people are willing to pay for it. However, price data for…
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Insurance and Financial Advisers

Financial Advisers and Insurance

If you have ever received financial advice, you would have no doubt spoken about insurances with your adviser. Almost all working Australians have insurance inside their superannuation (check your next super statement if you don’t believe me!). You will likely have two types of insurance; 1. Life cover – an amount paid to you if you die 2. TPD – an amount paid to you if you become totally and permanently disabled You may also have income protection insurance which…
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Why you should see a financial adviser

Why you should see a financial planner

I will admit I have a vested interest in this topic as a financial adviser myself. However, it astounds me how many people disregard the benefits that good financial advice can deliver. Let me clarify what exactly financial advice is. What is Financial Advice? The role of a financial adviser is to help you to generate wealth. This is by helping you in the following areas: 1. Spending 2. Borrowing 3. Insuring 4. Saving 5. Investing If you haven’t already…
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The Home Loan Interest Experiment

The Home Loan Experiment

When you ‘buy’ a house you will incur the necessary evil that is interest. Necessary because there is no way of avoiding interest repayments unless you have saved up enough money to buy a home outright. However, below I explore a way to set up investments so that I pay the bank even MORE interest. Wait. What?! (Both scenarios below rely on a voluntary contribution of $25800 per year and an initial $40,000 home loan deposit)  SCENARIO 1 Okay, so I have $40,000 deposit saved –…
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Starting an Investment Portfolio

Starting an Investment Portfolio

In this article I will be talking a bit about what an investment portfolio actually looks like, how to set it up and what to invest in. Don’t worry if you think this is complicated, this post will go through it step by step and by the end of it you will be able to set up your own portfolio. Anyone can do it. I heard an interesting quote today – ‘money has a time scale – the earlier you…
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Who wants to be a Chinese Millionaire?

Who wants to be a

Have you heard about the best trading software application out there? The set and forget trading software that makes you a millionaire in a matter of months – and you don’t have to know a thing about trading stocks! It was all developed by Chinese mathematic prodigy Jin Li in his basement – he found the algorithm that works! The software is called Chinese Millionaire and you can find it here. Hopefully you applied a health amount of skepticism to…
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The Success Library – Malcolm Gladwells ‘Outliers’

outliers_image

Malcolm Gladwell’s Outliers is a book that examines what makes people successful. In a series of case studies, Gladwell presents the idea that to be successful (that is to become an outlier) you should not only be smart and hardworking but you should be born at the right time, have the right upbringing, be raised in the right country and have a good amount of luck along the way. Gladwell examines people like Bill Gates, Canadian hockey players, pilots and…
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Investing for the Smart and Lazy – Exchange Traded Funds

Investing for the

Picking which stocks you want to invest in can be daunting, especially if you are relatively new to investing in stocks. So the idea of an ETF is a great thing for new investors. In this article we will talk about what ETF’s are, the advantages and also explore some examples. What is an ETF ETF stands for Exchange Traded Fund which means this investment is traded on the stock exchange, like a stock would be, except that a fund will comprise…
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Know When To Quit – Stop Losses and Exit Strategies

KNOW WHEN TO QUIT (3)

One of the biggest fears that people have when considering to invest in stocks is “what happens if I lose all my money”? Obviously it would be very difficult to lose all your money in any sensible investment but in this article we will look at how to protect your capital so that if you were to make a loss, you wont lose any more than 15% of your capital. How a stop loss works The idea of a stop loss is…
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A Little Bit About Bonds

Dont Pay the Bank. Be the Bank!

In this post we will talk a little bit about what bonds are, how you can invest in bonds, the benefit of bonds and what kind of returns you can expect. By the end of this article you will be in a position to consider investing in bonds for your own portfolio. So what exactly are bonds? Well, think of it like this. When you go to a bank and get a loan, you pay the bank interest on that loan. Well…
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