‘Disposable income’ is a commonly used term for the amount of income you receive in excess of your expenses. This is a dangerous term, as you should never plan on disposing all of your income. A better way to think of this money is as your investable income. When faced with an increase in investable income, it is very easy (and sometimes tempting) to simply allow your expenses to rise to meet your new income level. This results in a slightly improved short term quality of life but at the detriment of your longer term financial position. The smarter choice is to use this excess income to generate even more excess income, which benefits you both immediately and in the long term. The solution is wealth creation.
Investing is a powerful wealth creation tool that your Count Adviser can assist you with. As a qualified and experienced professional, your Count Adviser can discuss different investment strategies with you and help you understand options such as ‘gearing’ and ‘dollar cost averaging’. Your adviser will also help you decide the most suitable investment platform and managed funds to help you reach your goals sooner.
You don’t need a lot of money to get started, but you do need a good understanding of the different types of investments that will help you achieve long-term wealth. Your Count Adviser can explain all your options and help you with:
- Managed Funds
- Investment Platforms
- Self Managed Super Funds (SMSF)
- Share transactions – DIY or adviser assisted
Here are some initial questions you should consider when investing your money:
- What are my financial goals?
- How much money should I invest?
- How should I invest?
- What are the tax implications?
- How long will I invest for?
It’s never too early or too late to learn how to invest!
How to Create Wealth
1. Select the right adviser for you
This is the most important step when it comes to planning your financial life. Seeking the help of a qualified professional can be critical in the success of your financial plan. You need to feel comfortable discussing your financial goals with someone you can trust. This person should be committed to helping you create wealth no matter what stage of life you are in.
What are your life goals? Financial goals will tend to mirror your life goals. For example, if one of your life goals is to travel, then you will need enough funds for airfares, accommodation, tours etc. Discussing your life goals will help your Count Adviser determine how much wealth you need to realise those goals.
Your Count Adviser will recommend different investment vehicles and strategies to help you create wealth tax-effectively.
The cornerstone of any wealth creation plan is protecting it. No one likes to think about bad things happening but it’s important to consider your loved ones in the event that something unfortunate does happen. What happens if you suddenly fall ill, are involved in an accident, permanently injured or even die?
Income protection insurance, trauma, life and total and permanent disability (TPD) insurance ensures your lifestyle and your loved ones are well taken care of should anything happen to you.
It is inevitable that events in your life will often change your priorities and force you to re-evaluate your goals. Regularly reviewing your financial situation will ensure you are still on-track to achieving your life goals.