Take responsibility for ensuring that your business profits create personal wealth.
- Your business should be a vehicle designed to create the profit levels necessary to provide you with the lifestyle you desire, both now and in retirement. While you cannot necessarily be expected to have all the skills of a qualified financial planner, you alone must take responsibility for acquiring the professional assistance required to ensure your future financial security. Take note of these tips:
- Educate yourself on the many investment opportunities available in the marketplace today, attend seminars and read extensively because the money you invest in yourself is the best investment you will ever make
- Accept the fact that as Australia’s population ages, the Government will not be able to provide you with an acceptable level of monetary support in your retirement, you must plan to provide for yourself
- Interview a number of licensed financial planners
- Ask for a list of their clients with whom you can speak, in order to check the planner’s level of professionalism and the quality of their after sales service
- Once you have checked their references, select a planner based on the level of comfort you have with their style and their ability to understand your specific needs and wants – short and long term
- Provide your preferred planner with a complete and thorough overview of your current financial situation, a total asset and liabilities statement as well as an income and expenses statement
- Discuss the range of investment and superannuation options available to you and agree on your risk profile, are you aggressive or conservative?
- Understand that an aggressive investment strategy involves high returns and high risk, while a more conservative approach produces lower returns at a greatly reduced risk level
- Learn the advantages and the disadvantages of being involved in the three main areas of investment, property, managed funds and shares
- Develop a savings plan, irrespective of your age, and follow it consistently, remember it is not how much you make, it is how much you keep that counts
- The economy moves in a cyclical manner every seven to ten years and at certain times during that cycle you must place your new investment funds into that area of the economy that is performing strongly at that particular time
Remember the effect of compound interest, would you rather be given one million dollars today or one dollar that doubles in value every day for a month, you do the maths.