Seven rules to build financial success

According to Nathan Bell, research director at Intelligent Investor Share Advisor, financial independence brings peace of mind and that while many Australians have put off retirement due to years of poor investment returns there are ways to achieve financial success and weather the impact of tax, the threat of recession and inflation.

Bell advises a cautious approach to debt especially borrowing for products such as margin loans and where possible to avoid personal loans and big credit card balances.

When it comes to investing in shares Bell advises a realistic attitude about the rate of return noting that since the global financial crisis investors need to set more realistic expectations about increasing asset value by more than 10 per cent.

No matter how tempting it is to become involved in the next big thing remember if it looks too good to be true then it probably is says Bell. He cautions against investing in anything that you don’t fully understand saying that it’s better to walk away then to find yourself mixed up in an investment where you don’t have a thorough understanding of the risks.

Source:
http://www.smh.com.au/money/saving/seven-rules-for-financial-success-20130305-2fi7o.html

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