Posts

Investment for Beginners

Investment for Beginners

If you are a novice and not sure where to start with investing, please ask me.  I would rather give you general advice and guidance free of charge than know you have charged ahead and lost your money.

Meanwhile, read on and learn about THREE INVESTMENT SCREAMERS that can cause a lot of financial pain.

  • Speculating v Investing
  • Borrowing to Invest
  • Investing only for a tax deduction

Avoiding these three (3) fundamental investment traps will help get you on the path to long term responsible investing and creating long term wealth.

Speculating v Investing

You get a hot tip from a friend and want a piece of the action.  You do absolutely no research and put your money on a ‘sure thing’ underpinned by nothing but hope and faith.  So many people do this and get into trouble by throwing money at money-mirages.  This is not investing; it is speculating, a very dangerous practice.

Borrowing to Invest

This is widely accepted as a traditional investment strategy, so what could possibly go wrong with making an investment using someone else’s money?  Over the years, I have seen so many people get badly burned doing this – even when buying real estate.  Borrowing to invest can appear attractive when market values are rising and interest rates are low, but what goes up always comes down and vice versa.  The financial pain comes when markets turn and the value of the investment drops below the amount borrowed. Years after the GCF, many people are still stuck with ‘white-elephant’ investments and will be repaying very real loans for years to come.   So the moral of the story is that markets are cyclic so plan ahead for changing market conditions.

Investing only for a tax deduction

The very first rule of ‘Investment 101’ is that if you are investing solely for a tax deduction, you are investing for the wrong reasons.  You only have to look around and see how many promoters of tax-effective agricultural investments are still around.  There is a big difference between investing for a tax deduction and responsible investing with an understanding of the applicable tax rules.

The reason I am pointing out these common traps is that it is easy to inadvertently slip into all three traps even when buying real estate.  It is a popular myth that if you buy property you can’t go wrong.

It can go very wrong and often does, mostly because investors become blinded by distractions other than the core quality and true value of the property being purchased, and the real risks surrounding the investment.  Risk is commonly underestimated because of the popular misconception, “It can’t be that risky if everyone is doing it, right?” Wrong! There is risk with every investment, and when you borrow money, your risk is multiplied.   Know this before you start.

Your investment focus should be on research and asset quality.  You should have a realistic view of all of the risks involved for the return you expect.   Always understand your market and the true value of your purchase.  Do your sums, know your limits and align your investments with your own innate attitude to risk.  In other words, invest in a way that is not going to keep you awake at night.

This is general advice and educational information only, designed to increase your general knowledge of investment.  As a financial adviser, I strongly urge you to seek professional advice before making any decision about investment or before making a major financial commitment. As this article suggests, there are many investment choices and which investment is appropriate for you depends entirely on your goals, individual needs and circumstances.  Please contact me for personal investment advice.

A new age in financial advice

Business consultancy Australia

MyProsperityForum is a fast convenient way to access unbiased financial advice.  If you are busy and short of time, simply subscribe at www.myprosperityforum.com and log in at any time of the day or night.  Ask questions, see what others ask, check out the articles & FAQ.  The forum is ideal for anyone who can’t afford the time, or doesn’t want to make a business hours appointment for financial advice.

Your host is Gary Weigh, a friendly and very experienced financial planner.  He has grey hair and extensive knowledge, the result of 30 years of solving problems and giving good advice to Aussie individuals, families and businesses.

Gary will guide you through the twists and turns of superannuation, savings, investment, sensible building wealth, finance, retirement planning, estate matters and more.  If you are a business owner, he will give you advice on building your business so that you can ultimately exit on your own terms.

You can trust that MyProsperityForum provides unbiased advice and education only.  There are no products for sale in the forum, and no product push.  However, Gary will explain to you how various product types work.  He will also make complex government rules and difficult financial concepts easy for you.

If in the future you decide to purchase a financial product or need a referral to a specialist professional, then simply ask and Gary will make arrangements for you outside the forum.

In MyProsperityForum you have access to expert, unbiased advice 24/7.  Use it short term to gain financial know-how and do your own thing; or use it long term as your trustworthy financial planning companion.  So before you take the next step on your journey to prosperity, run it by Gary in the forum.

If you value good advice, subscribe now to MyProsperityForum only $49.97 per month


How much email marketing is too much?

This is something I wrestle with personally.  At the moment I am busy promoting my new online MyProsperityForum site.  My target market is risk insurance (i.e. life insurance & income protection) advisers, financial planners and home loan professionals.  I am also about to start a keyword and social media campaign to drive traffic directly to the site.

But back to the email issue!  I am emailing other financial professionals to let them know what a great resource this innovative forum is for them personally as well as the enormous benefits for their clients.

Whilst I don’t want to send emails too often, I do want them to know the benefits of using and referring their clients to the forum.  But how much is too much?

I am reasonably well known in the financial planning and business coaching Brisbane communities so I don’t want my emails relegated to the spam box.   That outcome will only serve to tarnish my good reputation.

But I do want to get my messages across.  For example:

  • Non-financial planning financial advisers are regularly asked questions outside their field of expertise.  MyProsperityForum is a perfect solution.
  • Some people, even clients of financial planners, are personal finance DIYs who are very interested in understanding the many tricky financial planning concepts as they apply to both individuals and business owners.  MyProsperityForum is the ideal solution and a service option not available or offered in the past
  • Many people can’t afford to or are reluctant to consult a financial planner.  Again, MyProsperityForum is a perfect solution
  • A lot of people simply want to ask questions of a knowledgeable professional without any obligation or product push.  There is also a lot of value at MyProsperityForum in seeing what other people ask.
  • People want difficult financial concepts (e.g. personal risk insurance, investment, superannuation, retirement, estate planning) explained in plain English.  MyProsperityForum already has such content uploaded in easy-to-read article form

You must check out this website!

Check it out!

MyProsperityForum is one of the most innovative websites ever.  If you are interested in your own prosperity, you can join the forum and ask questions about anything to do with personal finances or business planning.  This includes budgets, debt, investment, insurance, superannuation, retirement, insurance, or even starting a business income.

The beauty of this forum is there is not the usual product push or pressure to fork out money for a financial plan.  It is a safe place to find out how to get ahead financially; and there is always a financial planning expert on hand to answer your questions and guide you.  This site is perfect if you’re a DIY, don’t want to spend lots of money, or if you just want to learn to be better with money.  There is even a private message service if you want to ask a silly question.

There are heaps of great articles already posted in the forum.  To name just a few:

  • The ugly truth about ‘no medicals’ life insurance
  • Improve your personal finances – 10 ways to get started
  • The power of a good risk insurance adviser
  • Putting money away for the kids
  • My top 10 tips for a prosperous retirement

Just in case you don’t get enough value from having a financial expert to yourself and reading the plain English articles, there is also a 220-page e-book called “Recession Riches and Wealth”.

I strongly recommend you check out this unique forum www.myprosperityforum.com