There are different ways to build your wealth. Margin lending basics explained to get into the stock.
I am hearing stories and I’m sure you are too, about people reaching their 90’s and running out of money. Well, the truth is it can happen at a much younger age.
Sometimes there are circumstances beyond your control that rob you of earning capacity, circumstances like an interrupted work career. Women, in particular, miss out years of earning capacity because caring for the family too often falls on them.
Longevity demands starting your retirement with a bigger pool of investments and savings, and the sooner you recognize this and see what is available, the sooner there is a chance to achieve a bigger nest egg. This kind of clear thinking encourages focus, and with focus opportunities will come to you that you may have previously missed seeing.
How can you increase your capital base?
- Ask for a pay rise
- Do a course that may allow for a higher paying job
- Start a side home based business like dog walking, home tutoring or writing
- Reduce your spending in order to save more.
Some say it’s not how much you earn its how much you save that makes the difference to your bottom line. Having a budget and tracking expenses for three months is recommended. Most people are amazed how much money they are spending on a regular basis on things such as coffee, lunches, take-away food, magazines, and chocolate treats to name a few.
Savings alone may not get you to where you want to end up. It is common practice to use gearing to get ahead. Many of us dream of owning our own home. Most of us don’t have the money and borrow to achieve that goal.
The borrower uses the asset you buy as security for the loan to enable the purchase. This old financial technique can also be used to buy shares or managed funds with the aim of increasing the investment value over time.
Many of us dream of owning our own home. Most of us don’t have the money and borrow to achieve that goal. We use an investment strategy called margin lending. The borrower uses the asset you buy as security for the loan. This old financial technique can also be used to buy shares or managed funds with the aim of increasing the investment value over time.
Seeking advice is always a good first step. Look for an adviser who offers the services you are considering. The ASIC (Australian Securities and Investment Commission) Money Smart website have information on how to choose a financial advisor.
For now I hope this latest episode on margin lending basics may offer some insight. Its one of the ways to build your wealth so you don’t run out of money.
SUMMARY
3:15 Brief History
4:48 Long Term Strategy
5:16 Purposes
7:05 Security
10:00 Lending ratios
13:10 Monitor Investments
16:50 Self directed investors
23:00 Contacts
To connect with Keith online
Have you listened to the last episode of Retire Well Retire Happy Podcast?
Leave a Reply