By Guest Blogger, Marc Bineham
Money Mento, Keynote & TEDx Speaker | The Money Sandwich
It’s fair to say, most of us aim to be happy, healthy and wealthy. To build wealth though, it should be more than just having money sitting idly in a bank but more importantly, providing us the freedom to do the things that provide real meaning to our life. How good would it be you have the time and the income to do the things that truly matter—spending time with family and friends, travelling the world and creating lasting memories. So, creating wealth through property investment is a really good way to build significant financial security and freedom, now and the future, as well as ensuring your family are well looked after long after you have gone.
So how much wealth is enough for you, your family and how do you get there? Well, here in my view, is some important key steps in helping you reach your goals through property.
Crafting a Strategic Plan
Having a well-thought-out plan, a roadmap if you will, with a clearly defined wealth strategy is crucial. People seldom achieve goals they do not set. Your roadmap should outline short-term and long-term objectives, identify key milestones, and establish actionable steps to reach your financial goals. Without a strategic plan, your aspirations for wealth creation and inter-generational wealth transfer may remain just that—aspirations.
Understanding Financial Concepts
To build wealth effectively, it's essential to understand how to make money and become fluent in the language of finance. You don’t have to spend a lot of time on this but important to be over the basics. Concepts such as debt, tax-effective debt, leveraging and the distinction between growth and income assets can make a huge difference in your investment strategy. Educating yourself on these topics or seeking advice from financial experts and coaches can provide the know-how needed to optimise your investments.
The Importance of Outsourcing
Outsourcing certain tasks is vital since there are only so many hours in a day. Getting sound advice and selecting the right advisors can help you make informed decisions without becoming overwhelmed. Professionals such as financial planners, property advocates and mortgage brokers can offer invaluable insights and help when needed most. ‘You don’t know, what you don’t know’, and we have helped so many clients not make (very) expensive mistakes. It’s amazing that top sportspeople in the world still have coaches, top businesspeople have mentors, and yet when it comes to making million-dollar decisions and wasting so much time every weekend looking through properties and going to auctions, many don’t see the value of outsourcing this. It gives you back time, gets the job done and allows you to focus on the more important things in life.
Structuring Your Assets for Inter-Generational Wealth
When planning to pass on wealth to future generations, the structure in which you hold your assets is critical. Family Trusts allow property you may pass on or help your children invest in, to have protection from potential future divorce for example, while estate planning tools such as Testamentary Trusts can help ensure that your wealth is transferred efficiently and according to your wishes after you have passed. Proper structuring can also provide tax advantages and protect your assets from potential risks.
The Stability of Property Investment
Over the years, property has proven to be a useful and stable asset for wealth creation. Its tangible nature, coupled with the potential for capital growth and ongoing rental income, makes it an attractive investment. The secret for me to financial freedom is ensuring that you have an alternate income stream to your everyday salary. So, if the worst happens and you lose your job or even if you want to have a break, the ongoing income stream from rent, helps provide that freedom of choice. Also, property often provides a level of security that other investments, such as shares, may not consistently offer. Historically, property values in Australia especially the major cities like Sydney, have shown resilience and growth, making it a cornerstone of many successful wealth-building strategies.
Balancing Property and Shares
While property is a strong asset class, getting the right mix of property and shares is essential for a balanced investment portfolio. Spreading your risk or diversification helps mitigate risk and can enhance overall returns. Deciding what mix is right for your situation involves assessing your risk profile, financial goals, and market conditions. It’s another reason why getting good advice is so important.
So, creating inter-generational wealth through property investing requires a strategic plan, an understanding of financial concepts, and the right mix of assets. Outsourcing tasks and structuring your investments properly can further enhance your wealth-building efforts. By focusing on these key areas, you can build a robust financial legacy that supports not only your needs but also those of future generations.
Remember also, and really is an important point to emphasise, creating wealth is not just about having a lot of money or assets. It's about giving yourself the time and income to do what you love to do—whether that’s spending time with family and friends, travelling the world or circling Australia in a caravan. It’s all about creating memories that last a lifetime. You only have one life, so enjoy it and make the most out of it. Best of luck on your wealth creation journey.
Marc Bineham's goal has always been to help Australians live their very best lives through a positive mindset, promoting well-being, and achieving financial freedom sooner. He believes everyone deserves that.
In 2019, a turning point occurred in Marc's life when he underwent open-heart surgery. This prompted a re-evaluation of his 30-year career in financial advisory, including four years as the national president of the Association of Financial Advisers (AFA). While he always loved helping his clients reach their goals and aspirations, he realised that most people simply couldn't afford help or advice, and that had to change.
So a year later Marc decided to write his award-winning book, titled "The Money Sandwich." His goal was to provide readers with the knowledge and confidence to make positive changes in their financial situation. He envisioned it as a complete guide to all things money and finances without the huge price tag.
Through speaking, seminars, workshops, and personalised coaching, Marc enjoys helping people take control of their financial well-being.
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