A cash bond is a type of investment used by some investors when they approach their debt serviceability limit with banks, and is a way of increasing serviceability by “ticking the boxes” of a lenders debt serviceability criteria so that you can borrow more money to invest. In order to do this you need to have at least some equity available to use, either through borrowings from a line ... »
When immersed in your job, business and daily routines it’s easy to lose sight of the purpose of wealth building. Below is the classic story of a Mexican fisherman and an American investment banker. We hope this simple story helps give you some clarity in the pursuit of financial freedom. And a worthwhile reminder that you don’t need to be that wealthy to live a happy, meaningful and f... »
Although our preference is to use self-managed super funds (SMSFs) as early as possible, there is a cheaper alternative to SMSFs that provides some of the benefits of SMSFs (but not all) and at a much lower cost, and it is worth mentioning as it may be appropriate in some circumstances. To start off with, and to make the comparison more worthwhile, let’s look at the annual costs of running a... »
In our article, Transferring $2M Into Your SMSF, we explained why we are not big fans of borrowing to buy residential property inside a self-managed super fund (SMSF). In this blog post, we explain one exception to this general point of view, that is partly a lifestyle decision and partly a strategic financial decision. Although a SMSF cannot purchase a residential property from a member, there is... »
Here are questions about insurance we think you should ask your insurance advisor: How much insurance do I need? What are the premium costs? Do the premium costs and amount of insurance increase with inflation? What is the difference between level and stepped premiums? For how long and up to what age am I covered for? Can I get “own-occupation” cover? What is total and permanent disability (TPD) b... »
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