Generational Wealth Preservation

Discussion in 'Estate Planning' started by Andrew Allen, 4th Mar, 2007.

Join Australia's most dynamic and respected property investment community
  1. Andrew Allen

    Andrew Allen Well-Known Member

    Joined:
    24th Sep, 2006
    Posts:
    270
    Location:
    Brisbane
    I have this blog post in mind about generational wealth preservation.

    Cos I'm too lazy to do that yet I will post it here.

    Hindenberg had it spot on I think when he plowed all his investing profits into timberland in the late 1800's, his thought was that who could he trust from his heirs to manage the wealth properly? Income producing land was as close to a fool proof vehicle as you could get, and still is in my opinion.

    The Catholic church in Australia is I believe the largest land holder. Take a drive through any area and note the parcels of land they own as well.... nice :O) The church didn't get rich on the back of a mechanical system, algorithimic trading, stock picking or currency trades.... it was real estate. Makes me smile when I see church leaders selling off prime chunks of dirt to developers cos they are cashflow poor, the poor guys have no understanding of the worth of their own history.

    I am Jack's continuing disbelief about what goes on in the fund damagement industry. I feel I have learned a lot in 2 years full time trading (more than 3 years full on learning cos it's still something I would do for fun). My view is buy the farm with funds (index all the way) or be a very good stock picker/trader who channels money into hard assets like real estate like it's going out of fashion (cos it soon will), at least thats what I'm doing slowly at the moment.

    Not nescessarily connected to anything... :)
     
  2. Nigel Ward

    Nigel Ward Well-Known Member

    Joined:
    10th Jun, 2005
    Posts:
    989
    Option B sounds good...

    Use shares for income, property for leverage and as a non-volatile storehouse for wealth, with cash to oil the machine...

    An optimised investment structure...

    Sounds a bit familiar... :D

    Cheers
    N.
     
  3. Andrew Allen

    Andrew Allen Well-Known Member

    Joined:
    24th Sep, 2006
    Posts:
    270
    Location:
    Brisbane
    Actually there wasn't an option B.

    My poor writing.

    What I mean to say was for the income from equities part of the equation either use an index fund or do it yourself if you think you have that skill.

    Agreed mostly about the wisdom of Steve N and the optimised investing structure, excellent course for those who haven't attended.

    Also what I meant to say, and I will say it again... Real estate does rock because it's the most robust vehicle (but not impervious) to human stupidity. Of course if you have to renovate yourself, then real estate is a lot less cool :) ... first time renovator a bit battle scarred.