Creating Real Wealth

A young redhead boy is apple picking with his family in an orchard in autumn. He is smiling and giving an apple to his mother.

Income Solutions mission is to create wealth for our clients.
Wealth is the absence of financial worry, an income you don’t outlive, and a meaningful legacy to those whom you love.


If you are healthy…. You are wealthy! And while this is a great sentiment and for any of us who have been experiencing illness recently it will certainly resonate. However, today we know that it is not as simple as this, as in recently quoted studies our health and wellbeing can be, up to a point, directly linked to our income

We need money for our essential needs, and to participate in a community we need access to resources to make this possible, hence the creation of wealth in financial terms is required to fully embrace life in all its stages.

As it is Income Solutions core ‘Mission’ to create wealth for our clients, it is worth exploring the actual concept of wealth and how it might differ to simply being rich or having access to a high Income. The creation of wealth is working towards a sustainable income, as opposed to being rich and having access to money. Robert Kiyosaki, the author of ‘Rich Dad Poor Dad’ has encapsulated this concept very succinctly in the following quote:

“The rich have lots of money, but wealthy don’t worry about money”

In our Mission Statement we make clear that we view wealth as being the ‘absence of financial worry’ and in the above statement by Kiyosaki he states that the ‘wealthy don’t worry about money’. Core to this is that fact that wealthy people work towards obtaining a long-term sustainable income, live within their means and save and invest money in income producing assets such as an investment portfolio.

Creating real wealth usually involves avoiding debt for discretionary spending and instead borrowing less than you can afford to buy income producing assets.

A formula for achieving an ‘income that you don’t outline’ is described in a video Titled ‘Your Tree’ presented by Income Solutions founding Adviser David Ramsay Using the analogy of an apple tree to describe an asset, he explains that the income your asset produces, the ‘apples’ it grows that you have access to picking will serve you better than ‘lopping off a branch’, and thus decreasing the size of your principal asset. Having an asset that generates an income without eating away at the principal ‘the tree’ will ensure your asset stays in tack not only throughout your lifespan but also as an asset for future generations, thus creating a meaningful legacy for those you love.

At Income Solutions we believe achieving wealth is achieving peace of mind A mind free from financial worry provides real wealth for our clients as they can then focus on what they care about most.

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Two Simple Steps to Building Wealth

“Never Spend all that you earn.
Always borrow less than you can afford.”
~ Peter Thornhill

The above advice has never been more relevant in the current climate of the rising costs of living and interest rates. However, it doesn’t really matter what the current financial parameters, if you keep spending more than you earn, borrow to the brink of what you can afford and don’t invest wisely and with expertise to help your money grow, most likely you will eventually run out of it!

This is not only great financial advice for people on low or restricted incomes, but people on higher incomes can also often be tempted to spend more than they earn and think it will not catch up with them, however the law of mathematics ensures that it usually does! This same mistaken confidence can also propel people into borrowing to the very limit of what they can afford rather than borrowing enough for what they need, forgetting that interest rates over the long term will not remain static but will steadily be adjusted both up and down over the long-term.

By adhering to the above simple two financial principals, you may be able to develop plans to invest in both yourself and to begin establishing investment plans and goals. Secondly, by borrowing less that you can afford you further free up income that would be going towards interest payments and have the peace of mind of not being under financial stress each time interest rates might rise even .05%.

At Income Solutions it is often stated that an investment in yourself is the best investment you will ever make
Mindfully using some of your savings to invest in your career, education or general wellbeing will improve your focus and give you the tools to work towards your long-term goals. Working in partnership with our clients we have never come across anyone who has told us they regret studying or training to improve and update their qualifications or skills.

Also, consider making your money work as hard as you, history and figures show an investment in a balanced share portfolio (SP500*) over the last 20 years will provide larger returns than simply parking your money in a savings account or term deposit:

– $10,000 invested over 20 years in shares (*SP500) = $50,913.05 ~ a return of 8.06%
– $10,000 invested over 20 years in term Deposit = $18,208.00 ~ assuming a 3% return
(3% is generous considering the current Term Deposit rate is approx. 1% and less for funds over $250,000)

And while past performance may not be a predictor of future performance, history can provide us with a guide to make informed decisions and choices. For further information refer

As a client of Income Solutions you will be provided with a proven and successful investment framework that has been developed over 30 years together with qualified and experienced expertise from financial planners and advisors who are licensed and compliant to the highest industry standards.

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Social Media and Unlicensed Financial Advice

“Receiving advice from a qualified professional is almost always going to be a better option than trusting an amateur dishing our stock tips in a video synched to the latest rap tune”
Aleks Vickovich, Wealth Editor ~ Australian Financial Review March 22,2022

ASIC (The Australian Securities and Investment Commission) is concerned about the unlicensed financial advice that is being posted by ‘Finfluencers’. Most influencer’s post information and advice about money and investing on a variety of social media platforms, however they usually do not have a financial services license.

It is not only ASIC who is speaking out about the dangers of unlicensed financial advice and social media content, Judith Fox, CEO of Stockbrokers and Investment Advisers Association has also welcomed more stringent compliance regulations for ‘Finfluencers’, pointing out that investors have absolutely no recourse if they are burned by the advice given.

A worrying trend has developed where some ‘influencers’ will talk about stocks that they themselves own, their followers will then buy the stock themselves at a higher price, and then the ‘influencer’ will sell their stock at the higher price, leaving others with worthless stock! This practice is now known as ‘pumping and dumping’. Further, many are paid by financial services organisations to promote their products and services and they are under no obligation to disclose conflicts of interest or the fact they are getting paid to promote or advertise products.

When comparing unlicensed and licensed financial advice it should be noted that all licensed advice is given by individuals who have a relevant bachelor’s degree, and often further specialist training, subscribing to arduous licensee training, compliance, insurance and dispute resolution requirements.

It is the Law that financial advice is only given by a licensed financial adviser whose clients have access to the Australian Financial Complaints Authority and ASIC, who will ensure compliance and auditing obligations are meet. Accountability for stock and investment advice can be enforced when dealing with a licensed financial adviser.

On the other side of the equation, those giving financial advice on social media platforms who are not licensed are breaking the Law but it is often difficult for ASIC to hold them accountable for the financial advice they are giving, which allows for very little readdress for those investing their money based on this online advice.

At Income Solutions, we believe that obtaining compliant and specialist expertise to create wealth is key to ensuring the money you invest is appropriate to your individual circumstances and goals, is secure and invested for maximum returns within the principals of best practice.

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Risks Associated with Online Trading Platforms


“Everyone is entitled to take risks. However, we advise first-time investors to focus on long-term goals and not make rash decisions based on a fear of missing out on market falls or gains. We also recommend learning about trading before you start or getting advice from someone you trust.”
Quote: Greg Yanco, Executive Director, Markets at ASIC

The Australian Securities and Investment Commission is concerned about the number of investors using online trader platforms who are unaware of their risk exposure. While it can be seen as a positive development that more people are taking an interest in the markets, it is important the inherent volatility and complexities of the market are fully understood before handing over money to trading platforms, especially first-time investors.

At Income Solutions, we believe that the recommendation made by ASIC Executive Director Greg Yanco, that people learn and educate themselves in understanding the share market, together with getting financial information from a trusted advisor has the potential to not only save you money but increase your investment portfolio into the future. To demonstrate this point, at Income Solutions when working in partnership with our clients to develop a financial plan, one of the important financial strategies that we ensure they understand is the difference between Speculation and Investing as research shows that applying this financial strategy potentially increases long term financial outcomes.

There is currently a lot of misinformation around trading strategies online that are the result of online scams and unlicensed advice, or the product of social media campaigns where trading companies are sometimes paying for favorable comments on forums such as Reddit or Facebook. For these reasons financial advice and education needs to be supplied by licensed and credentialed financial advisors who are regulated through ASIC and meet stringent compliance obligations and requirements.
While online trading may be a relatively new financial option, the Aesop’s fable written in the mid-6th century comes to mind of the ‘The Ant and the Grasshopper’
The ants demonstrating that a consistent and considered approach to planning for winter (or your financial future) brings about the best results rather than the ad hoc approach of the grasshopper who wanted quick outcomes without a lot of planning or effort.

While an online trading platform may be a convenient and quick vehicle for people to ‘have a crack’ at owning shares, it is worth considering whether this approach is what is needed when planning and investing in your financial future. While it may take a little longer developing a financial strategy and plan and stopping to seek compliant and trusted financial advice the outcomes in the long term may well prove to be worth it.

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The Power of Striving

“When we strive to become better than we are, everything around us becomes better too.”
Paulo Coelho

Striving to be better, either in our career, health, finances, or personal outlook doesn’t just change and improve ourselves as individuals, it makes the lives of the people we love better and makes our interactions with those that we are connected to better as well.

The positive focus you generate when embarking upon striving for improvement in no matter what aspect of your life, has the effect of consciously or subconsciously providing inspiration to others.

When applying this concept through the prism of striving for financial security we can provide examples of how this affects other people:

– The negative impact of financial stress on family life is well documented and by striving to be financially responsible and working towards financial independence we can create a more harmonious family environment for ourselves, partner and children.

– Being financially independent gives us the freedom to contribute either our time or resources to causes or people we are passionate about helping.

– Focusing on improving our financial situation and planning long term for our retirement frees up limited community and government resources for people who do not have the capacity to do similar.

The examples, when applied are broad and varied, but striving to be better in whatever areas of our lives we wish to focus on has the wonderful corresponding effect of also changing and improving the lives of others around us, making the act of striving a powerful act of love for either family, friends, or our community.

Behavioural Coaching Provides Long Term Gains

In what is normally a sedate period on the investor markets, the recent January global markets have been displaying some turbulence, mainly due to predictions around rising interest rates and speculative concerns when viewing inflation rates globally (1). History has proven that during market changes and fluctuations the value of good financial advice is quantifiable (2).

Financial advisers will take time and use their expertise to evaluate and diversify your portfolio, discuss with you your financial objectives, and provide behavioural coaching to ensure financial decisions are made with clarity and not subject to what is happening in the moment, or reacting to commentators who are focusing on short term monetary gains, rather than long term financial objectives.

Table Taken from Vanguard refer link below (2)

The above table shows that in 2007, at the beginning of the Global Financial Crisis the investor who stayed committed to stocks and a predetermined asset allocation gained $41,000 by 2014, while those that withdrew their $100,000 investment and redistributed to Bonds or Cash lost 10% and 29% of their investment respectively.
Financial Advice provides behavioral coaching that ensures you can adhere to the facts and figures of investing. Working together with an Adviser, share market fluctuations can be an opportunity for long term gains.


Benefits of adviser


Man walking a tightrope with a safety net — Image by © Alberto Ruggieri/Illustration Works/Corbis

On 3 March 2021 we posted a Blog titled ‘The Value of Advice’ highlighted in this article was the fact that a professional Financial Adviser will inform, guide and provide options and choices for people to control with greater clarity their financial future, and today this has never been more evident than in a pandemic.

In a recent article appearing in ‘Professional Planner’(1), The 2021 Russell Investments Value of an Adviser Report states that Financial planners who applied a long-term strategy to investing have achieved an increased value to their clients Portfolio of approximately 5.2% during these recent COVID induced turbulent times.

By guiding clients to not pull out of their investments in March 2020, financial advisers have assisted their clients in avoiding poor investment calls that would have been simply a short-term response to a volatile market that has since forged a strong recovery. The COVID market has been one of dislocation and recovery, and during this period many investors sold out of key shareholdings following dramatic falls and then faced financial barriers to re-enter the market when it sprung to life.

Financial advisers were largely responsible for ensuring their clients were not among those who pulled approximately 40.6 billion out of their investments and superannuation.
The above 5.2% figure is made up of several elements:

– Preventing behavioral mistakes
– Advising on appropriate asset allocation
– Optimizing cash holdings
– Tax-effective investing and planning

The wealth management provided by an Adviser reflects a longevity of market experience.

The difference is some investors can be tempted to ‘market correct’, often making decisions when the markets are volatile, trying to time the market. While investors who are educated by their Financial Planner to know that the market will always have its ups and downs will stay the course, and evidence has shown this is what will pay off over time.


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