Managing your finances to meet your day to day requirements as well as your long-term goals can be a complex task. There are all sorts of issues you need to consider such as taxation, legislation, protecting your wealth and assets, associated costs and the inherent risks of investment.
When undertaking a financial plan it is important that you understand how these issues will impact on you and what you should expect over time.
Debt can be a very useful tool when used properly.
Using debt, you could buy a house you may not be able to afford outright. You just need some equity and you can borrow the rest, assuming you can make the repayments.
Debt can also be used to buy investments with potential to grow in value, like shares and property. This strategy, known as gearing, may help you to build an investment portfolio faster than you could have otherwise.
To help repay the loan you’ll have income generated by your investments and possibly some tax deductions. So, for many people, servicing an investment loan can be an achievable outcome.
- Gearing & lines of credit
- Margin lending
- Debt management strategies
- Savings plans (incl. education) & cashflow planning