![]() | |
![]() | |
![]() |
Investing Information |
|
![]() |
Creating Wealth by Gearing Up
Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debt before looking at investment. However, there will arise situations where the investment is a good one and it is necessary to borrow a small amount to make the deal work. The borrowing may be for property or shares. Gearing allows you to increase your investment and potentially obtain a higher return. On the downside, however, if the investment does not pay off you stand to lose a lot more. Negative gearing comes about when the interest you are paying on your borrowing is greater than the income from your investment (for example, from a rental property). You can claim the loss or difference against your taxation and write it off as a deduction against other income. Negative gearing is not necessarily the best investment strategy. Even though you get a tax break it is still costing you money. That is, you may be saving yourself 25 cents in the dollar, but you have to spend one dollar to achieve that. People look at negative gearing because they calculate that they will be able to sell the investment for more than they bought it and in the meantime their losses are deductible off other income they earn. They conclude that the Commissioner of Inland Revenue is in reality helping them fund the growth of the value of their property. If it can be avoided, don't borrow against your home for investment. This applies particularly when the investment is speculative. Things do go wrong and you wouldn't want to find yourself (and your family) out on the street without a roof over your head. If you borrow money to invest, this is known as margin lending. The extra funds raised allow you to invest more, increasing the potential returns, compared to what you would get from your standard savings. It allows you to use other people's money so you can get a significant increase in your wealth from a small deposit. The negative side is when share prices fall below a level and a margin call is made. When this happens you will have 24 hours to respond in one of three ways. You have to come up with the cash, you have to sell assets, or you have to provide additional assets to top up the equity. If you have a margin loan, make sure you fully understand the terms of your loan and also put in place survival strategies in case things don't work out.
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
MORE RESOURCES: Anti-ESG investing Financial Times If You Invested $10,000 in Mastercard in 2013, This Is How Much You Would Have Today The Motley Fool Should You Invest in These 2 Hot IPO Stocks? The Motley Fool Should You Buy Arm (ARM) Stock? | Investing | U.S. News U.S News & World Report Money Investors who bought Bay Area real estate plan 'city of yesterday' Business Insider Police investing fatal shooting in Wilmington's Southbridge neighborhood 1150AM/101.7FM WDEL Analysts Predict A 19% S&P 500 Surge Soon — Lifted By 10 Stocks Investor's Business Daily Despite political backlash, socially responsible investing is still ... Wisconsin Examiner 24 Things I Believe About Investing A Wealth of Common Sense Wealth Management And Investing Leaders: These Are The ... Investor's Business Daily Biden-Harris Administration invests $3.9 million for Ocean ... National Oceanic and Atmospheric Administration Investing $100/week into SHIB in 2023 would be this worth today Finbold - Finance in Bold Charted: What are Retail Investors Interested in Buying in 2023? Visual Capitalist Should Investors Buy UiPath Stock Right Now? The Motley Fool Amazon to Invest Up to $4 Billion in A.I. Start-Up Anthropic The New York Times Investing Lessons From Authors The Motley Fool Community foundations embrace impact investing ImpactAlpha 3 Mistakes High Net Worth Clients Make When Investing The Motley Fool A Quality Executive Compensation Plan Lowers The Risk Of Investing In John B. Sanfilippo & Son, Forbes PhonePe's New Stock Broking App Makes Investing Accessible to ... Walmart Corporate 3 Dividend Growers Investors Can Buy Now and Hold Forever The Motley Fool $100 Oil Is Back! Here's What Smart Investors Should Do Now The Motley Fool President's Investing in America Agenda Provides Resources for ... US Department of the Interior Bearish momentum is building - Citi By Investing.com Investing.com S&P 500: September Slump Deepens as History Suggests ... Investing.com Best Investments to Own During a Recession Morningstar Huge News for Disney Stock Investors The Motley Fool The 2 Stocks Investors Must Watch This Week The Motley Fool Smug S&P 500 Investors Miss Out On 8 Red-Hot Big Stocks Investor's Business Daily 10 Best Investments for 2023 | Investing | U.S. News U.S News & World Report Money Jaspreet Singh: How To Invest Your First $1,000 Yahoo Finance GBP/USD Marks Its Worst Month of 2023 | investing.com Investing.com 'Magnificent Seven' investing playbook: Amazon's opportunities 'the same as its challenges,' analyst says Yahoo Finance Bad News for Tesla Stock Investors The Motley Fool Massive News for Nio Stock Investors The Motley Fool Just Started Investing? Here's 1 Solid Company to Buy With $200 The Motley Fool How Safe Is Investing in Gold? Morningstar Is Now a Good Time to Buy Stocks? Warren Buffett's Sensible ... The Motley Fool |
![]() |
![]() |
![]() |
RELATED ARTICLES
Tyranosaurus Rex Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness. Angels Investors and Their Networks What is an Angel Investor?An Angel is usually a private person who invests in small businesses. The Angel is generally a successful businessperson or entrepreneur who looks to invest in a business that has potential for growing their investment in the future. Stock Market Horizons: Gold $3,000, Oil $70 In the last two decades, even though gold prices have dwindled from $850 to $350 an ounce, there are still market gurus who predict gold price to hit $3000 an ounce. Hecla seems to be quite bullish about the future. The Switzerland of Asia Shines In many respects, Singapore is the Switzerland of Asia.Begun in 1819 as a British trading colony, the Republic of Singapore was founded in 1965 under the leadership of the current Prime Minister's father, Mr. Advice for International Investors on How to Safeguard Their Profits What are the risks?Today, investors are increasingly turning to global markets to find opportunities for profit, giving urgency to the issue of protecting returns from foreign exchange risk. While there are many excellent investment opportunities to be found all over the world, volatility in the currency markets can and does affect the profitability of these investments. Seecrets on Investment: Tired of Making Huge Losses in the Stock Market - Part 1 Over 80% of all individual investors lose money in any given span of ten years. This figure is likely to be higher, given most people's reluctance to reveal their losses. Why You Need To Buy and Sell Gold Coins (Part 3) Putting Rare Coin Market Cycles to Work for You.. The 8 Biggest Mistakes When Designing Portfolios - and How To Avoid Them Are you as good an investor as you think? Do you consider yourself a well-informed investor able to anticipate and avoid nearly all pitfalls associated with investing? Chances are, you are making one of the common errors that could cost you hundreds or even thousands of dollars, or worse yet, your financial independence, control and security."I see people making the same costly mistakes over and over," says Scott Frush, CERTIFIED FINANCIAL PLANNER and author of Optimal Investing: How To Protect and Grow Your Wealth With Asset Allocation (Marshall Rand Publishing; available by calling 1-800-247-6553). Your Worst Enemy To Successful Investing - The Media How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to be aware that for every expert, there's an opinion and for every opinion there's an expert. Reasons For Joining An Investment Club Whether you're a novice investor or an experienced stock picker an investment club may be beneficial to growing your investment portfolio. This article explains what an investment club is, why you should have an investment program and finally why you should join an investment club. Investing and Asset Allocation Sometimes you spend sleepless nights worrying about which stocks to buy and which to sell, which funds to own and which to dump and whether to get into bonds.All of these are legitimate concerns, but the greatest determinant of your success as an investor will not be your sagacity in selecting specific stocks, bonds or funds for your portfolio. Retirement is Never Urgent Until If you're like many people, your retirement savings have not been growing consistently over the years. We're not referring to the wild fluctuations in the stock market, but rather the fluctuations in our short-term needs. Dont Catch a Falling Knife One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is the phrase used to describe the habit of buying stocks that are in "freefall", and is a poor strategy, albeit common among new investors. The Convertible Craze Brightens The Future Of Equities Convertibles are stealing the show with their safe investment image in today's "protective" market. They seem to be overshadowing the stocks and bonds, and this holds true for the mediocre issuers. What Is A Fair Market Value, Really? If Youre Going To Trade, Be Sure Its Worth It! I've been involved in online trading, specifically with stock and index options, for several years. In this time, I've spent a great deal of time thinking about value and the fact that anything, be it a stock or currency or even a house, is worth exactly whatever someone else will pay for it. Online Trading Options Strategies - Rolling Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.Other times, you may have to buy your short call back so that you will not lose your stock. Investment Rowing You have rowed a boat at some time haven'tyou? Yes, put the oars in the water and pull. Ofcourse, you don't know where you are goingbecause you are sitting backwards. Building The Foundation For Wealth You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon. How Eating Bitumen Made Me a Better Stock Trader Stock market trading is a fascinating activity.There are so many layers to it. Profitability And Stock Turn Rate The inventory of the typical store represents the largest single element of its total assets. The sale of goods from this inventory is the merchant's chief source of operating profit. ![]() |
home | site map |
© 2006 |