“Trying to stop thinking in the negative or towards the risks, is like telling someone to stop thinking about a green horse. The more they try to stop thinking about a green horse the more they think about it. The best approach is not to fight thoughts, but to acknowledge them.”
So let’s look at a few investments before tax, fees and inflation:
1. THE STOCKMARKET
Expected return of 12.01% (All Ords accumulation index compound return since 1979). Risk four out of 10.
2. BONDS
10 year return of 5.5%. Risk zero
3. PAYING OFF THE MORTGAGE
Pretax return of 7.81% (Standard variable rate) which grosses up to 10.6% pretax. Risk zero
4. LOTTO
Expected return of one million percent. Risk of 100% loss is 9.99999999999 out of 10.
5. MARRIAGE
Expected average return of one extra income, zero to four kids, two possible inheritances, a free life coach even if you don’t need one, onerous school fees and a dog. Risk = long term love, fulfillment and satisfaction.
6. DIVORCE
Expected return of minus 50%. Risks unknown.
Lawyer
Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.
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