Financial Planning

In 2010, Wendy was diagnosed with rheumatoid arthritis, an incurable and debilitating condition that changed her life overnight.

At the time of her diagnosis, Wendy, then 47, was loving life, enjoying peak career success working for a pharmaceutical company, and a newfound romance with David, whom she had met six months earlier. At first, Wendy was unable to comprehend the reality of what lay ahead. Just six weeks after her diagnosis, crippling pain meant Wendy could no longer perform her normal duties at work. When it became clear she would have to leave the job she prided herself on and which she loved, the mum of three was devastated.

Just six months prior to her diagnosis, Wendy had met with a financial adviser who suggested she take out income protection. Fortunately, Wendy listened and now, looking back, says it was one of the best decisions she had ever made. She often thinks about what her life would have been like had she not had the financial support income protection provided.

Rather than worrying about how she was going to pay her share of a new mortgage and meet her medical expenses, Wendy could focus on her treatment, and adjusting to a new life that was never part of the plan. It took three years to get her condition to a manageable level and this is where the income protection really assisted Wendy and her family.

Today Wendy is enjoying working part-time as a first aid teacher and keeps her RA symptoms under control through a strict vegan diet and plenty of exercise, especially swimming and cycling. Her health continues to have its ups and downs but her focus now is on staying well and managing her symptoms.

Hope for the best but plan for the worst

This case isn’t unique and instances like this can be found all across Australia, however Wendy was able to manage her financial situation through utilising her income protection insurance. It can make a significant difference by removing additional stress and allowing you to concentrate on recovery. Income protection is just one component that forms a comprehensive financial plan. It may be important to know which options could be available to try and help protect you and your family’s future, in the event of any unforeseen sickness or injury. If you’re unsure of your financial protection requirements, speak to your financial adviser today. They’re here to protect and build your wealth.

General Advice Disclaimer

The information contained in this article is general in nature and does not constitute personal financial advice. It has been prepared without taking into consideration your personal objectives, financial situations and needs. Before acting on any information contained in this article you should consider the appropriateness of the information having regard to your objectives, financial situations and needs.

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Benefits of Investing in Real Estate

Entrepreneurship is the one and only path through which individuals can realize their financial dreams and one of the easiest and most effective mode of investing comes in the form of real estate. Real estate is a perfect avenue to make substantial financial gains over a long period of time while keeping the costs and liabilities low. Below we discuss some of the reasons that make real estate a perfect investment option for budding entrepreneurs.

Stable Cash Flows

The most attractive feature in real estate is the stable and regular cash flows. Most businesses make millions in profit, but struggle to maintain a healthy cash flow required to meet their financial obligations and continue investing towards their long-term financial plan.

Cash flows from real estate are far more stable and predictable as compared to other businesses in America. This is an amazing advantage to have when an entrepreneur is in the initial stages of his investment. Having an extra sum in your hand can be great for ups and downs in an individual’s life.

 

The Loan Payment

Most individuals hesitate to start their own business due to the high risk of losses or lack of strong financial backing. But in real estate, it is extremely easy to take loans from the bank. These loans would be essentially paid by the tenant and the investor would continue enjoying the increase in the net worth of the asset over time.

Today an investor might owe $200,000 on a property, but next year as the tenant continues to make the payment towards the loan he may only owe $195,000, which means that he gets $5000 wealthier without doing anything. When the loan is completely paid off on the property he would have a substantial asset in his hand that he can sell or continue renting out for a regular cash flow.

Tax Benefits

If a business earns $100,000 during a year and a real estate business also earns $100,000 during a year then the real estate business would be able to keep more of its money. There can be different kinds of perks and tax benefits that ensure that the real estate investors get higher savings on their earnings.

Inflation and Capital Appreciation

There is an established economic principle that the value of money declines over time and commodities become more expensive while for other kinds of businesses this means lesser profits or higher costs, but for a real estate investor the prices of the properties increase in line with other commodities but their liabilities on mortgage payments remain fixed. This amazing feature ensures that the investor earns rent at the market rate that would keep increasing over time while his liabilities remain fixed at a certain amount.

The decline in the value of money would also inflate the price of the property that means the investor would be getting dual benefits out of his money in the form of capital appreciation while having to pay off fixed amount of mortgage payments.

For more information and advice on investing in real estate, please contact our team at Anne Street Partners or call 135 444 today!

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Most people subscribe to the belief that staying busy and working hard is the only recipe to success. However managing your time effectively and working smarter can enable you to work more efficiently and with a lot less stress! Financial planning experts Anne Street Partners have put together some useful tips to help you promote a smarter, more stress free work ethic!

Find out more here: http://www.annestreetpartners.com.au/work-smarter-whilst-your-money-works-harder/

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