At Rocket Wealth Management, we can work with you to identify
potential savings from existing debt, or create a budget to assist with cash flow problems.
Are you finding it
difficult to reduce
Australians on average have some of the highest levels of debt in the world.
- Bank overdrafts
- Bank loans
- Benefit overpayments
- Catalogue debts
- Council tax arrears
- Credit and store cards
- Friends and family debt
- Energy debt
Many people don’t have a budget in place or don’t realise they could be benefiting from strategies which reduce debt more quickly, resulting in large savings over the remainder of the loan. At Rocket Wealth Management, we can work with you to identify potential savings from existing debt, or create a budget to assist in cash flow problems.
Debt management is an individual process for everyone. There are many factors which need to be considered, such as existing debt, disposable income, interest rates, or unexpected events.
Our services will provide you with a strategy and structure to assist you in achieving your financial goals.
Should you borrow to invest?
Borrowing to invest can allow you to invest in assets you wouldn’t otherwise have been able to. It can help spread your money across different investment types, which can help reduce risk. This greater exposure gives you the potential to magnify your returns, but can also magnify your losses. If you have built up equity in your home or investment portfolio, you may be able to borrow against this equity.
You could also take out special investment loans – often called margin loans. You can also borrow a lump sum with regular amounts to add to your investment – known as instalment gearing. Since the interest costs are usually tax deductible, gearing can be a tax-effective strategy. With margin loans, lenders allow a maximum gearing level known as the debt to asset ratio. You might have to offer more security or even sell some of your asset holdings at current prices to bring your gearing down to the right level.
Retirees should consider how comfortable they are taking on more debt or focus on eliminating their debt. Margin loans should only be considered by investors who are comfortable with an above-average level of risk. As any investment professional will explain, an opportunity should not be considered for its tax effectiveness. It needs to be measured by how strong the underlying asset is, and its potential for growth. Tax-effectiveness is a method which helps improve investment viability – it should not drive the decision. For more information about how Rocket Wealth can guide you through various ways to minimise debt, contact us today.
Ready to talk? Book an appointment today.
With our experience in finance and mortgage broking, our aim is to deliver the right strategy for your circumstances, and make the process as simple as possible.
Our Past Clients
“We are super impressed with the results we’ve had after working with Ben at Rocket Wealth Management. They added a level of personalisation & have simplified the process of wealth management for us. The work ethic, great communication & keen attention to what the customer needs individually set them aside from the others. The whole system has actually been a breeze to use. We’ll definitely be suggesting Rocket Wealth Management to our family & friends in the future.”
“We were unsure what we should do in our situation, we had a heap of questions and were unsure about what we should do. Rocket Wealth Management helped us, gave us great ideas that he hadn’t thought of and now feel so much better and more relaxed and happier about our situation and where we are heading.”
“I very much appreciated the personalised advice and ongoing support given by Rocket Wealth Management”