To manage your wealth effectively and efficiently you need a complete overview of your financial position, know what is happening to it, and have ability to access and transact on it quickly and easily.
You should be able to pinpoint your wealth position, at any time. Your wealth position is not just a matter of knowing your bank account balance, but tracking all of your investments, including shares, managed funds and other assets such as artworks, property, and cars.
Investing to grow wealth can generate a lot of paperwork. Share certificates, fund application
forms and bank statements should all to be organised. It is very important to reduce paper work wherever possible. When using an online sharebroker you do not need to send share certificates to your broker when you sell your shares. The transaction process is entirely online and confirmation can be sent to you electronically. Purchasing and administering a managed fund online is another way of reducing paperwork while accessing an investment opportunity.
Connecting accounts and electronic transactions enable you to make your wealth fully work for you.
Another strategy to assist wealth creation is to use your credit card for your day-to-day purchases and bill payments. You then pay the card off in full when due.
Cards that give you an interest-free period create the opportunity to leave your money in a more effective interest earning or reducing account, such as a home loan. If you have a credit card that has a rewards program you will also earn reward points.
How to protect your Wealth?
To protect your wealth it is important that you have appropriate insurance.
The most common type of insurance is that used to protect your assets. Examples of this type of insurance include home and contents, car, and loan insurances.
Health insurance provides coverage for medical expenses. You usually get a choice of the benefits, but the more you are covered for the greater the premiums will be.
Travel insurance will cover you against some medical expenses you incur while overseas, as your regular health insurance may not cover you in other countries. Travel insurance can also protect your luggage and against cancellation of your trip. Some travel insurance can be used for domestic travel as well.
Life insurance provides for payment of a lump sum benefit in the event of your death. Often you can also choose to include benefit payments in the case of total and permanent disability or severe health trauma.
To maintain wealth some may invest money in Shares. Investing directly in shares has some advantages compared to indirect investment, such as in managed funds, including no on going fees while holding the shares investment in shares can offer high liquidity - shares are generally easily traded as there is usually someone wishing trade a share in a particular company at any point in time you control the share that you invest in you can diversify by investing in a wide variety of companies from many different industry sectors.
The advantages and disadvantages of Property Investment: