Sunday, February 7, 2010

Week Eight Reflection

Units covered this week are 16 to 18.


Unit 16: Advanced Graduate Strategy:
  • Always consider the size of the 'pie' and how to expand it.
  • Remember difference between deferred savings and real savings.
  • Building $20k may take awhile.
  • No strategy to pay back margin loan repayments.
  • Dependent on how investments perform against the interest.
  • Keep conservative lifestyle.
  • Borrow more to keep LVR at 33%.
  • Borrow full amounts with parent guarantee.
  • Place extra savings into managed funds.
  • With strong savings home loan repayments can be repaid by investments.
  • Early savings give a lot of flexibility in the future.

Unit 17: Retirement
  • Not a good idea to pull out all superannuation.
  • Be neutrally active by getting a part time job.
  • Leave money in super environment, mainly for tax reasons.
  • Keep things simple.
  • Aim to receive 0% age pension.
  • Asset and Income test change from year to year.
  • Employ a financial planner 10 years before retiring.
  • Any pension gets you a pension card, saving greater than $1000.
  • Invest wisely and live off that.
Unit 18: Estate Planning
  • Establish will when I start working
  • Re-evaluate once i get married.
  • Intestacy can really destroy my distribution of wealth.

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