The last blog touched on how Northwood protects clients’ wealth by adding diversity to the unit trust investment portfolios on offer. This week, we will look at creating wealth by adding more diversified investments.
Our clients know that when it comes to investments, we prescribe to the “don’t put all your eggs in one basket” philosophy. We seek to add value and diversity to all our client’s portfolios to creatively manage risks.
An investment tool that works well for many of our clients is Residential Property. This is used to generate passive income in the form of rental income. A Capital Gain is also accrued as property values escalate. This in turn creates wealth and a steady income for our clients.
We encourage every client to become a landlord. To reduce risk, we have a model that protects our clients against tenants who abuse the law.
In many cases, the value of residential properties can escalate by up to 15% over the period of a year. This, combined with the rental income, enables clients to build up estates which exceed inflation rates, and creates genuine wealth and ongoing income streams.
To further improve monthly cash flow, we also encourage our clients to review their day-jobs.
Sometimes a job change, or further education, can make a noticeable improvement to their monthly income streams.
Ultimately, being reliant on only one monthly income in the form of a salary from an employer, is risky. Supplementing your income by creating passive income streams will reduce your vulnerability.