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Momentum Financial Group

Gearing Strategies

Geelong and Horsham 

Gearing may be used to accelerate the process of wealth creation by allowing an investor to make a larger investment than would otherwise be possible. The borrowed money can be invested in a number of ways, but most typically in line with a sound investment philosophy.

Gearing can be an effective strategy if the after tax capital gain and income return of the geared investment exceeds the after tax costs of funding the investment.

Gearing is generally most appropriate for people:

  • With an assertive or aggressive risk profile, who are prepared to accept investment volatility
  • With a strong, secure cash flow (which is protected by appropriate levels of insurance)
  • On a higher marginal tax rate
  • With an investment time-frame of greater than seven years.

We recommend you read Understanding Gearing.

Talk to investment advisors at Momentum Financial Group to secure a greaing strategy as part of your investment planning. We can also help you with accountants and business coaching Horsham and Geelong.