by Mark Nielsen

There have been market drops across the world such as the big corrections in China and hiccups in the US.   This shows, more than ever, that everyone needs to make their own enquiries about the stability of their investments and financial future.

What makes investigating your own financial future so difficult is that there are as many diverging opinions as there are financial planners, accountants and investment gurus.   The problem is, who do you trust?   Some may side with David Koch or Paul Clitheroe because as media personalities they have a reputation and are trusted.   I doubt anyoneDavid Koch thinks they would lie to us but how do we know they have a complete grasp of the world economic climate;   surely it’s too big a subject for anyone.

At some point each of us has to take responsibility for making decisions for our financial well being.

Real estate agents are certainly one group in society that claim something like a ‘pseudo’ insight into the state of the economy and a crystal ball like ability to interpret where the real estate market is heading that apparently exceeds that of mere mortals.   There is a real danger in taking the word of any one ‘expert’.

Paul Cliteroe

In the modern capitalist system market adjustments are not a disaster but a necessity.   The problem is when the adjustments are too big and last for too long.   Paul Keating, the 24th Australian Prime Minister talked about the recession of the 1990’s as “The recession we had to have”.

No one benefits from these things but governments are far more savvy than they were when the world went into recession after the stock market crash of 1929.

Then as now the ownership of land and buildings remains a great security.   The amount of debt you hold must be a decision you are comfortable with and we always urge people to allow yourself a buffer to live not just survive.

Like many real estate agent I remain sceptical about shares with their continual ups and downs.   The phrase, ‘It’s as safe as houses’, tells me if I want to be safe stick with houses.   Why risk the stock market.

Whether we make extra contributes into our superannuation or just simply watch the balance grow from the standard employer contributions we still have some control on how it is invested.   Super funds should all give individual members a facility to choose our investment option from the most risky high yield international shares to the blue chip Australian shares and down to the most secure 100% cash options.

The writer has personally chosen the safest cash options for superannuation in the last few days because I can’t see any reason to ignore all negative advice when I can so easily change back to higher yield options later.   There can be a small cost to change options more than once a year but this will depend upon your super fund.   Many advisors will say it is not wise to continually try to chase the market as you can easily be left behind yet many people are happy to try to play the market when deciding whether to fix a home loan or not.

One of the best options can be to start up your own Self Managed Superannuation Fund (S.M.S.F.) because it can give you much greater control of your money.   S.M.S.F.’s have the ability to use your money to buy an investment property.   Owning an investment property then enables you to access all the options for negative gearing including claims for depreciation which can create a profit.

We are not financial planners or investment advisors or accountants so we urge you all to make your own enquiries to ascertain what is right for you.   But having said that we are people who can think, draw conclusions and make reasoned judgments based on the best advice we have at the time.   So we urge you all to do the same.

Foreign Buyers Couple buying a house Financial Freedom
Foreign Buyers Couple buying a house Financial Freedom Free Appraisal
Call Us
Office: 8186 2777
Mark: 0414 969 490
See us on FaceBook
See us on FaceBook