Gearing up for wealth creation
Investing in the sharemarket can provide significant financial rewards and with the recent drop in high interest rates people are now considering the notion of borrowing to create wealth. Gearing offers a great way to do this very tax effectively and can be carried out through two main strategies, gearing against the equity in the home and margin lending.
To own your own home is considered the ultimate coup in Australian society today and most people think that it is best to pay off the home loan as quickly as possible by using all available funds however, the downside to this way of thinking is that there is no further funds left over to help create additional wealth. A home gearing strategy will allow you to do both and offers a number of positive implications to your wealth creation.