Wednesday, April 2, 2008

My view on asset classes

In the future I intend to have 4 distinct income streams, think of them like 4 different business, which I can withdraw a bit of money from each, when needed. To provided diversification and exposure to other assets.

If I was only in property, the booms are usually 5-7 years apart. That is quite some time to wait. Where as the share market can give you exposure to most asset classes around the world from one place.

In the first box -

Property

This is the best source of leverage and secure lending against.
Pick up quality property's at good prices
My wife wants to get into renovating/building/developing
Try never to sell

The second Box -

My wife's share portfolio, with companies that provided good long term secure earnings that pay out increasing dividends year after year.
Never sell

The third box -

My High growth share portfolio, invested in companies with a proven resource or service that is for a large increase in sales.
Sell after about 2-3 years

The fourth Box -

This bit is abit more fluid not really decided on the format yet, but am leaning towards limited options trading to provide cash flow.
Monthly turnover.
Am a couple of years and alot of research and learning away from starting that.


The point of having a few different boxes, one should be chugging along, one maybe struggling , maybe one booming. Over the years I can pick and choose which to take a income on from that year. It also provides synergy to back each other up, and can transfer funds between, if required or opportunities arise.

No comments: