Empower Blog Cost of Investment

The Impact of Time

In a previous article, we began discussing the “inputs” that will be required for an Investment Strategy by talking about the role of money. Another key factor in any investment will be time, and time influences the outcome of an investment strategy in a number of different ways. The Investor's Time The first aspect of time that we need to c...

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The Impact of Money

In recent newsletters, we have been discussing the “outputs” that we are seeking from an Investment Strategy. Most importantly, we will be looking for ongoing capital growth of our investment asset, i.e. that the value of the asset grows over time, a yield, or ongoing income stream, from the asset, e.g. dividends from a share portfolio or renta...

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The Impact of Capital Growth

In an earlier newsletter, we identified that there are many different investment vehicles available to use in a strategy designed to deliver long term wealth creation, and that these different approaches differ in a number of key characteristics, including : their upfront and ongoing cost in terms of both time and money, the extent to which ...

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You have to Spend Money to Make Money

Let start with a simple question – Can you give me an example of how you have made money without spending any of your own money? Let’s get the obvious answers out of the way first: Inheritance. Good luck to those waiting around lazily to collect someone else’s initial spend to originally make it, not to mention the risk they took. St...

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Holiday Homes as Investment Properties

Its holiday season and that time of the year we all head to the beach or the bush for our Christmas and New Year breaks. It’s a time we get to read the paper from front to back and also even pick up the local papers for a catch up on what's happening in our favourite Christmas holiday destination. It’s also a time we get to wander up and down t...

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To Fix or Not to Fix – ‘The question on everyone’s mind…..’

Depending on long term funding costs and increased demand for fixed loans, fixed mortgages can actually go up when the cash rate / variable mortgages are going down, as we have seen just recently. Fixed interest rates don’t automatically move in the same fashion as variable mortgage rates do. So in my attempt to make an informed comment on thi...

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The Year Ahead…

February is the start of the mid-year reporting season for Publicly Listed Companies, so it promises to be an interesting month regarding stock price movements and overall market sentiment for 2009. It’s fair to say that given the market has retreated by around 40% from its highs of 2007, some analysts have been quoted that they believe the re...

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