My son, 31, has put his investment unit on the market. He paid $210,000 about six years ago, and it should sell for $625,000. How should he invest the money he will have made after the sale? He owes $120,000 on his loan.Wow, what a great result for your son. On the raw buy-and-sell price, that’s an almost 20 per cent return per year. Factoring in leverage, it’s more than 30 per cent a year.
My point is, the investment decision comes much farther downstream in the planning process. Encourage him to spend time determining his objectives. And in a shameless plug for my profession, this scenario would be a great example of where the help of a financial planner could be valuable, helping with both defining and prioritising his goals, and the ultimate investment strategy.
We are fortunate to live in a country with one of the highest living standards in the world. Whether we are considering healthcare, community facilities, personal freedom and safety, education, infrastructure, or support for those in need, we are incredibly lucky. This is made possible by the taxes that we all pay.