If we do nothing, nothing compounds into nothing but if we do something, something always compounds into something.
Learn from something:
Even if something fails, you have learnt something from it, no loss in loss.
Why do something:
Cause something gives you greater choices.
We can always do something: Choice!
For the Youngsters: Work hard or Part-time (at School), Start up a business, Cash savings, Shares/ETF, Margin Lend towards property, Risk is good!
For the Richer: Tax structuring, Investment trusts, negative gearing, property depreciations, imputation credits, superannuation, good/bad debt, giving!
For the not so Richer: Super superannuation, insurances, budgets, neutral or positive gearings (Shares), maximise government benefits/rebates, bill budgets
Now Here’s Something:
The Financial Health Index that follows identifies the ‘Something’s ‘ that you can all get started upon, Go On, Do $omething!
The Three Pillars and the passage of time
Generally speaking, the Three Pillars deal with the passage of time in the following ways:
- Focus on tax-effective investments and savings from the moment you enter the workforce.
- Think about starting the savings initially with a share portfolio (for example by moving into Exchange Traded Funds (ETF), which I’ll talk about later on in the book) and speed the process by re-investing the dividends for growth instead of cash.
- Accumulate the savings for a deposit on a rental property or other investments.
- Home ownership. Aim to commence this phase around marrying age (say mid-twenties to thirties), depending on when or if this happens to you, of course. At this point we look at moving all of Pillar 1 into Pillar 2 (your home).
- Superannuation. This really should always be the focus. Although you should always treat your superannuation seriously even when you’re young, this pillar becomes a major focus once you’ve reached fifty.
Dr Steven Enticott is a finance professional, speaker, author, taxation specialist and senior partner of CIA Tax – Melbourne, Australia (17 years).
Dr Enticott is a Chartered Tax Advisor (CTA), a Fellow of The Institute of Public Accountants (FIPA), a Fellow Member of the Taxation Institute of Australia (FTIA), and a member of the International Positive Psychology Association (IPPA).
Dr Enticott holds an Advanced Diploma of Business (Accounting), a Masters of Business Administration (MBA), a Diploma of Financial Services (DiPFS), and a Doctorate of Business (DBA).
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