A wealth creation plan that can also earn money for extra income

The first wealth creation vehicle that generally comes to mind for most people is Real Estate Investing, but are you aware that the same results can be achieved from the sharemarket?

When most people think of the sharemarket, their perception is that you buy some shares and cross your fingers, only selling them at a much later date to profit from any capital growth you might make.

To the novice that looks to be true, but there is much more you can gain from the market than that..............

True wealth and financial freedom requires a balance of three key areas...

1. Income
2. Capital Growth
3. Insurance

All three can be achieved through the share market...

Income

Could be created by options trading (a term for buying and onselling stock options) This could be achieved consistently in a short term using a fairly small amount of your own money.

You could also create an income by trading the shares outright, but you need a much greater amount of money (greater risk) to do this in a longer period of time, sometimes for a smaller return.

Capital Growth

Could be achieved from purchasing shares in very strong companies with the intention of holding them for the long term.

Fundamental research and company selection is vital to your outcome with this strategy.

If you don't know how to do this yourself, any book relating to Warren Buffett's style of value investing may shed some light.

Insurance

Did you know you can insure your shares?

Commonly called hedging, this can be achieved by purchasing a put option with a long term expiry date. A put option gives you the right to sell your shares for a set price, or agreed value, any time before the option contract expires. Just as you would insure your house or car.

So when the market goes through a sharp move or correction, as it has done lately, you have peace of mind knowing you won't lose your money.

Income and Capital Growth

Could be achieved by writing (selling) options over the shares you are holding and collecting premium (rent) at the same time.

Income, Capital Growth and Insurance

Can even be achieved together. You could buy the shares for capital growth, write call options over them for income, and buy a put option near the share price for insurance.

By doing this you could earn a consistent income without the risk of ever having to sell your shares, which in turn allow you to gain maximum capital growth.

This can be the perfect vehicle for wealth creation that will also earn money for an extra income. And the exciting thing is, armed with the right knowledge, anybody can do it!

Do you know when the average person reaches retirement age they will have only enough money reserved to give them a mediocre annual income to fund a mediocre lifestyle for the rest of their lives?

Why do people fail to achieve wealth? Generally because they lack the knowledge for effective structuring of their finances and they have no financial, or wealth creation plan in place for the future.

If you are failing to plan you are planning to fail!

If you'd like more information please contact Jules Dawson at Jule Corporation on:

Tel: 1300 557 881 (within Australia) or International : 61 2 6626 6881

Email: info@julecorp.com or visit our website at: http://www.julecorp.com/