Your place in the wealth scale

New research on 30,000 wealthy Australians has revealed “Income, saving and – most importantly – time are the most
important elements of wealth creation” – well surprise, surprise! 🙂

Doug Turek of Wealth Benchmarks has been researching wealthy investors since January this year. In the latest edition (5th December 2007) of The Eureka Report, Doug presents some of the findings of his research, which he plans to publish in a book in June 2008. The article is available for subscribers only but you can get a free 14 day trial so you may be able to read it if you act quickly.

Following are a few quotes from the conclusions in the article:

“Successful people create a “virtuous” wealth-building circle of earning, saving and investing and reinvesting.”

“The key message, which is a timeless anecdote about finance, is that we build wealth patiently and purposefully. There is a rich reward for those who get it right.”

“Other factors apart from age and income drive financial freedom or impact it. I observe, for example, a
marital separation knocks off on average 20% of lifetime wealth.” (Matt’s note: there is much value in investing in relationship development as well as wealth education.)

“Knowing the right asset allocation for you and managing your portfolio to this target is a critically important investment discipline. This work reinforces my suspicion that too many Australian investors neglect this fundamental and focus instead on tactically or ad hoc accumulating shares and other investments.”

Check out Doug’s site Wealth Benchmarks to conduct a free benchmark of your net worth against the average Australian.

Author: Matt Hern

Certified Financial Planner professional, Matt Hern has three times been awarded as one of Australia's Top 50 Financial Planners by The Australian Financial Review Smart Investor. He is passionate about guiding you on the right financial choices to achieve what you really want. Matt Hern is an Authorised Representative of Charter Financial Planning Limited AFSL 234665. All information is general advice only.