The 3 Fundamentals of Wealth Creation
1 – Develop a Strategy to Build Assets
The wealthy know that holding quality assets is the key to wealth. They also know that a key component is the development and constant refinement of their investment strategy to determine what asset class they should invest in and when.
If you are borrowing money to acquire the asset, then you need to develop a finance strategy and loan structure to ensure you are not jeopardising your home to acquire the asset and miss out on the potential taxation benefits that the asset may provide.
2 – Income Producing Assets
At some point in your life you are going to stop working which will be by choice or age. Most people retire to the Government Pension which is not usually adequate to live out your retirement years comfortably.
If you want to retire with enough money in your pocket to enjoy those latter years of your life, then you will need to develop a strategy while you are young enough and are earning income to do so.
Your investment strategy should take into consideration capital growth of the asset and one that produces a regular monthly income which will continue to grow with inflation. Your strategy should be designed to permanently replace your income.
3 – Asset Protection
All investment strategies carry risk, the higher the return, the higher the risk. All good investment strategies have a risk management component. Your strategy should cater for various levels of risk and your plan should be adequate enough to protect your investments.
If you would like more information about The 3 Fundamentals of Wealth Creation then please contact Vanquish Finance Group.
Declan Hanratty – Managing Director
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