|
|
Get your FREE
Financial Report!
Get your free financial report from Rival Wealth - a 'snapshot' of your current financial situation so you can start your financial planning and begin to build your wealth!
|
Building your wealth
The range of investment options available today is enormous and is continually increasing.
The effect of the complexity on many people is that, at best, they make ill-informed decisions or they do nothing.
If your investments are made at random, without any sense of purpose it is difficult to ascertain whether or not they will achieve your overall goals and objectives.
Make my money grow
- Do you want a high return and don’t mind if the market fluctuates?
- Or would you rather play it safe and know you will get a steady return?
Putting money into an investment will always have an assumed return with an assumed level of volatility or risk.
You need to make sure you take on enough volatility so your investment grows faster than just putting it in the bank and therefore beating rising inflation, but not too much that you can’t sleep at night.
We will help you achieve your goals through diversification, so that you are ‘not keeping all your eggs in the one basket’. By spreading your investments you reduce the level of risk you are exposed to and increase your return.
Simple though it may sound, this is a fundamental principle in the establishment of any investment.
Want to generate investment income
- Do you require steady ongoing income from your investments?
- Will you need steady returns and don’t want to take undue risks?
Everyone should have the ultimate goal of replacing the majority of their pre-retirement income, salaries from day jobs, by incomes generated from investments when we retire.
With the baby boomers coming to retirement all at once and the superannuation facing an uncertain future, investors may eventually have to rely on their own investments to pay living expenses.
The fixed income markets may be retirees' answer to income producing investments they are going to need. Most people think the world’s stock markets are a big deal and to be fair, they are.
It is also a fact the world’s debt markets dwarf the stock markets.
To reach the goal of having income in retirement, investors need to build a portfolio that can produce an income stream, including dividends, interest, and probably capital gain distributions.
The power of compound interest
People often underestimate the power of investing on a regular basis. The longer you leave your money, the more compound interest that builds.
So the earlier you start saving, the more you make from compound interest. If you can get a rate of return higher than bank deposits, the compound interest you receive will have a huge impact on your long term bottom line.
For example, if you saved $50 per week for the next 10 years, your savings would equal $26,000. At a rate of 6% per annum after taxes and fees, your investment would earn compound interest of $9,268.
Therefore the total would equal a hefty $35,268 in 10 years time.
|
|
|
