Tom's Blog

Here is another question from one of my Aussie friends, Anita:

Q: Dear Tom, I need to be financially self-sufficient in 2 years so that I can retire and live a fulfilling life style. My husband and I currently have Real Estate to the value of approx. AUS$1,700,000. $650,000 of that is our family home. $920,000 is owed to the bank, monthly interest is $6,000 and rental income is $3,500/m. Credit card debt is $60,000 some of which is at 20%(Yeah I can hear you gasping) I have now been pre-approved for a further loan of $460,000 @ 7.14%. Question: How best can I use this money on the 30% strategy you talked about when you came to Australia? This loan must repay itself and more.(My preference is for Real Estate.) Extra Question: How can I get a goal plan worked out such as the example of the woman which you demonstrated. P.S. Will your tax tutorials be relevant to Australia, what is an IRA?

A: First thing you do with the $460,000 is pay down that $60,000 of credit card debt that is at 20%. Next thing you do is to get your spending under control so you are not racking up additional credit card debt. After that, you need to create your wealth strategy that builds so much wealth you can spend whatever you want without worrying about credit card or other debt.

Begin by going through the 17 Secrets course you acquired at the Chris Howard seminar in Sydney. This is the same material that others can acquire (though without all of the bonuses) through our School of Wealth Strategy at http://www.provisionwealth.com/products. Once you have been through the materials, consider hiring a ProVision Strategic Wealth Coach. A ProVision wealth coach will give you advice that is relevant to your specific situation, will hold you accountable, and will help you build the team and the systems that will allow you to achieve your 30% investment returns.

Remember, that the key is not the investment, but rather the method of investing. This is what we teach in our School of Wealth Strategy at http//www.provisionwealth.com/products. Be sure to ask any questions you have either through the AskTom link or in our monthly coaching calls. I would suggest waiting to borrow the $460,000 until after you have developed your wealth strategy, unless you can borrow it as a line of credit that allows you to draw down only the amount you need at any one time, in which case I would suggest you obtain the line as soon as possible to pay down your expensive credit card debt.

Again, please feel free to ask these and any other questions on our monthly coaching calls. The next call is tomorrow at 7:00p.m. MST, 6:00p.m. PST. I believe this is in the middle of your day in Australia.

Warmest regards,

Tom

P.S. - See tomorrow's blog for the answer to your question about the tax planning bonus course you are getting with the 17 Secrets course.