$1 Million for Life: How to Make It, Manage It, Maximise It

427 Pages·2011·2.307 MB·English

by  Ashley Ormond

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Want to build wealth that will last you a lifetime? $
Then $1 Million for Life is the book for you! In this
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step-by-step guide to financial freedom, investor and
best-selling author Ashley Ormond outlines dozens of M $$11 M M IILLLLIIOONN
practical ways to increase your wealth by tens of thousands,
or even hundreds of thousands, of dollars. It doesn’t matter I
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how much you earn — it’s what you do with the money you
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have that makes the difference.
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Inside you’ll learn how to: FFOORR LLIIFFEE
• save money and pay off debts quickly N
• use low-cost, tax-effective ways to invest in shares

• invest in residential and commercial property F
• maximise the performance of your superannuation O
• protect your investment plans and your lifestyle.
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There are no get-rich-quick schemes or trading

systems — just practical steps almost anybody can take. L
$1 Million for Life gives you the tools to build enough wealth I
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so you can start doing what you really want to do for the rest How to make it,
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of your life.
manage it, maximise it
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Ashley Ormond is a successful investor and former
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senior executive at major global finance and banking
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groups. He has degrees in economics, law and l
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finance, and has been a director of several companies.
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He is the principal of Investing 101 Pty Ltd, which

holds an Australian Financial Services licence, and lives O
in Sydney with his wife and two children.
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o Ashley Ormond
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The best-selling author of
How to Give Your Kids $1 Million Each!
www.johnwiley.com.au/trade
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Praise for
How to Give Your Kids $1 Million Each!
‘Ashley Ormond shows parents and grandparents how to set their offspring on course to
understand, and benefi t hugely from, the two Golden Rules of investing — start early and be
disciplined. It’s a simple but effective approach which just about any family can use to learn
about money and build long-term wealth.’
Dr Don Stammer, economist and investment commentator
‘A timely and practical introduction to investing with a distinct focus on long-term strategies — it
will be particularly useful for anyone with an independent approach who wants to broaden their
investing plans to include the future fi nancial security of the whole family.’
James Kirby, editor, Eureka Report
‘A well-researched and informative piece, without the complexities of fi nancial jargon.
‘Topics ranging from savings and infl ation, right through to fi nding the right equity investment,
all are visited in this highly referenced guidebook. He outlines a number of effective growth
assets to ensure a great return in the long run, enabling substantial fi nancial backing for the kids
and more control over their lives … one of the most basic yet useful reference books out there on
the market.’
Ailene Belesina, Your Mortgage Magazine
‘The book is a great way to teach your children the value of money and to get them involved in
the savings routine from a very early age.’
Karina Barrymore, Herald Sun
‘His plan is simple, effective and smart.
‘This book should be read by all parents — I’m an instant convert and am starting the plan
immediately for my two bundles of joy.’
Tania Grieg, Fitness Life Magazine
First published September 2007 by Wrightbooks
an imprint of John Wiley & Sons Australia, Ltd
42 McDougall Street, Milton Qld 4064
Offi ces also in Melbourne
Typeset in ITC Giovanni 10.5/14 pt
© Ashley Ormond 2007
Reprinted November 2007
The moral rights of the author have been asserted
National Library of Australia Cataloguing-in-Publication data:
Ormond, Ashley.
$1 million for life: how to make it, manage it, maximise it.
Includes index.
ISBN 9780731407002 (pbk.).
1. Finance, Personal. 2. Wealth. 3. Saving and investment.
4. Tax planning. 5. Estate planning. I. Title.
332.02401
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing
for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a
retrieval system, communicated or transmitted in any form or by any means without prior written permission.
All inquiries should be made to the publisher at the address above.
Cover design by Brad Maxwell
Cover image © iStock International Inc./Vaide Seskauskiene
Wiley bicentennial logo: Richard J Pacifi co
Microsoft product screenshots reprinted with permission from Microsoft Corporation
Printed in Australia by McPherson’s Printing Group
10 9 8 7 6 5 4 3 2
Disclaimer
The material in this publication is of the nature of general comment only, and does not represent professional
advice. It is not intended to provide specifi c guidance for particular circumstances and it should not be relied
on as the basis for any decision to take action or not take action on any matter which it covers. Readers
should obtain professional advice where appropriate, before making any such decision. To the maximum
extent permitted by law, the author and publisher disclaim all responsibility and liability to any person,
arising directly or indirectly from any person taking or not taking action based upon the information in this
publication.
Contents
Acknowledgements viii
Preface xii
1 The problem 1
2 Step 1 — money sense 26
3 Step 2 — own your house outright 72
4 Step 3 — superannuation (part I): how to use super 115
5 Superannuation (part II): maximising super performance 138
6 Step 4 — invest outside super (part I): shares 171
7 Invest outside super (part II): property 239
8 Invest outside super (part III): other asset classes 288
9 Step 5 — protection in case things go wrong 317
10 Step 6 — do what you love doing 338
11 Putting it all together 359
References 392
Index 394
Acknowledgements
Thanks to the many thousands of readers of my fi rst book — for their feedback and encouragement
to write this second instalment. I also need to thank the hard-working team at John Wiley &
Sons for getting the book from idea to fruition. A big thankyou also to Phil and Bob who kindly
reviewed drafts of the book.
Once again I thank my wife and family for putting up with me while researching and writing
this book. Now that it’s fi nished I’ll have to fi nd another excuse to spend days on end ‘up in
the attic’.
viii