Mistake No. 1
25
YEARS MORTGAGE: why? For example, if you pay $270, 000 for Each $100, 000 of
mortgage at 10% interest.
CORRECTION:
Get a 15 year mortgage and Increase your payments by only 18%.
Result:
You pay $192, 240 for each $100, 000 of Mortgage. You save $77, 760.
Mistake No. 2
BUYING
WHOLE LIFE INSURANCE POLICIES: why?
The
most expensive type of life insurance.
CORRECTION:
Buy level premium term insurance.
Result:
Save up to 70% on premiums.
Mistake No. 3
BUYING
ENDOWMENT INSURANCE AS AN INVESTMENT:
Why?
Poor investment returns due to high Charges and poor tax efficiency.
CORRECTION:
Keep life insurance separate from Savings and investments.
Result:
Save on life insurance premiums and Improve returns.
Mistake No. 4
BUYING
NEW CARS: why? Cars depreciate 30% to 50% In the first two years.
CORRECTION:
Buy a 2 to 3 years old car.
Result:
Save thousands of Money, Pounds and Dollars.
Mistake No. 5
NO
RETIREMENT PLANNING: why? Over reliance on Government pension.
CORRECTION:
Join your company scheme after a thorough check Or set up a private pension
Scheme after taking advice.
RESULT:
Because pensions have more tax advantages
Than
any other investment, the government is Subsidizing your retirement. Contributions
are Tax deductible and investment profits are free of Tax.
Mistake No. 6
PAYING
ALLOWANCES TO CHILDREN FROM AFTER TAX INCOME: why? Allowances are taxed at the
parents Tax rate.
CORRECTION:
Pay children wages from your small Business, subject to hours and age limits.
RESULT:
Save up to 40% of every $1, 000 of Allowances.
Mistake No. 7
NON
DEDUCTIBLE COMPUTER AND CAR: Why? Its an Expense. Used in a small business, it
can be Deducted.
CORRECTION:
Depreciate within the small business.
RESULT:
Assets for business are deductible over
Time.
Mistake No. 8
BUYING
INDIVIDUAL SHARES, GILTS, PRECIOUS METALS
OR
COMMODITIES: why? Risky.
CORRECTION: Invest in equities or gilts through Unit Trusts to ensure spread of risk.
CORRECTION: Invest in equities or gilts through Unit Trusts to ensure spread of risk.
RESULT:
Lower risk investments and ability to Switch between cash equities or gilts to
match Economic cycle. Benefit from professional Management.
Mistake No. 9
NO
ACCESSIBLE CASH: why? Urgent cash requirements Can interrupt investment or
require expensive Borrowing against investments.
CORRECTION:
Build up cash reserve of 3 months Income in a TESSA, Cooperatives or building
society.
RESULT:
Avoid forced liquidation of investments Or higher interest loans.
Mistake No. 10
SURPLUS
SAVINGS IN BUILDING SOCIETY: why? Low Return.
CORRECTION:
Beyond 3 month's cash reserve, invest Additional funds according to Flexible
Investment Strategy.
RESULT:
Gain reliable long term returns on your Funds. All
The Best.
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