Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Let the Magic of Compounding work for You
Many investors are too impatient to benefit from the enormous power of compounding. Sadly, many consumers experience the power of compounding in a negative manner, when their debt balloons as a result of high interest borrowings on things such as credit cards when they fail to repay the debt with the required period.
In the positive sense, compounding occurs when an investor chooses to reinvest income as well as letting their capital grow. Adopting this investment approach for example through a portfolio of high quality shares, becomes an extremely effective wealth creation strategy.
For example, if you were to invest $10,000 at an 8% annualised return comprised of both income and capital growth, an investor would accumulate $21,590, $46,600 and $470,000 over 10, 20 and 50 years respectively. Patience, a key ingredient of benefiting from the power of compounding is a virtue than can improve over time and with experience.
As C.S. Lewis the Irish Novelist said “Experience: that most brutal of teachers. But you learn, my god do you learn”.