Let’s face it, life is a struggle; we graduate, start work and have to toil for at least 40 years before we receive our super, and the sad fact is that a pot of money is not enough for you to enjoy a comfortable retirement. Every Australian adult needs to think about generating wealth over their working years in order to enjoy a secure retirement, and in this article, we take a closer look at various ways you can generate wealth.
Real Estate Investment
One very effective way to build wealth is to buy a second property and rent it out; the rent pays the mortgage, and eventually, the loan is paid off, and you own the property outright. Talk to the Fresh Start Advisory in Sydney, and financial professionals can help you set up such an investment, plus they can manage your investment portfolio and ensure that you get maximum benefits. It makes total sense to have someone else pay the mortgage, and when the loan has been paid off, you have the equity in the real estate. Many small investors buy rental properties to generate wealth, and you can use a property management company to handle everything related to the property upkeep and the tenants. They charge a small commission for their services, and if everything goes well, you can expand and acquire another property. Of course, you will have to pay taxes on the profits and hiring a local accountant keeps that in order. Here are a few tips to minimise liability as a property owner.
Stocks & Shares
Some private investors choose to acquire stocks or shares, and you really need to have some knowledge of the markets before investing in this type of thing. Of course, you could engage the services of a financial advisor, a professional who can advise you and manage your investment portfolio, while taking a commission on the returns.
Private Collections
Some people choose to invest in art or luxury watches, which appreciate in value over time; again, you need to have a degree of knowledge about the items you acquire, be able to store them safely and keep an eye on their value, being prepared to sell when the price is attractive. This could be regarded as a hobby as well as an investment strategy, and profit would very much depend on numerous factors.
The Importance of Financial Advice
If you are looking to start building wealth for the future, it is important to engage the services of a financial advisor, someone who has extensive experience in managing investment portfolios for clients. A Google search can bring up a list of reputable financial institutions, and they would be happy to share a Zoom call so you can gather essential information. In order to create a financial plan, the professional would need to ask a lot of questions and develop investment goals and a plan of action.
