Wealth Pipeline

If you are investing in a currency other than Australian dollars (AUD), you are (or someone is on your behalf is) participating in the foreign exchange (FX) market.  For example, by purchasing a foreign asset, you are selling AUD and simultaneously buying another currency (such as US dollars (USD)) to purchase that asset.

It is imperative that investors focus on after tax investment returns and not pre tax investment returns.  We have put together a few scenarios to highlight the importance of tax when investing.

Should excess savings be used for investment or other wealth creation purposes as opposed to utilising it for an existing home loan?

Investment benchmarking is the process that appropriately compares and measures investment performance. This is quiet a simple procedure which is done by comparing your own investment return against the return of a benchmark over the same period of time.

In this month’s wealth pipeline we will endeavour to explain in layman terms some of the common terminology and acronyms in the world of investments.  As is often the case, each industry has its own jargon which once explained is never as difficult as we first believe.