People love lists and if you want to make a list you can’t go wrong with the endless stream of money myths that are floating around.
Here are five to consider:
Number 1: I have an inheritance coming. Or so you think. If that’s your financial plan you might be in for a rude shock.
Warren Buffet intends to give the bulk of his $47 billion dollar wealth to charity.
A prime example, your parent’s plans may differ from yours, so don’t count on everything flowing to you.
Number 2: If I earned more I’d save more. And probably spend more because those tempting purchases seem within reach.
We all leak money, some worse than others and earning more of it doesn’t mean you’ll save a cent more.
One in ten Australian households earning over $100,000 have no savings! Save first and spend what’s left!
Number 3: You can’t go wrong with… which ever asset class you favour. There are plenty of good and bad returns across the spectrum of investing.
No rule says they’re all safe, or all bad. It’s why personal investment success leads some people to assume the following myth…
Number 4: Property beats shares. Because it doesn’t! Russell Investments have studied after tax asset class returns for the past 20 years and Australian shares were on top with a 9.9 per cent return a year.
Property gurus will be comforted to know residential property ran an honourable second, with 8.8 per cent return per year.
Number 5: Great businessmen make great investors: Kerry Packer started with $100 million and was worth a reported $6.9 billion at his death.
Seems impressive! Until you consider for all the wheeling and dealing, had Packer invested that $100 million into the ASX 200 Accumulation Index, it would have been worth $11 billion at his death!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. We think we’re Tasmania’s best financial adviser If you’d like help with your financial future, we ‘re one of only six certified fiduciaries in Australia.
