Buying a Stake in a Race Horse

It is the dream of many racing enthusiasts to own a racehorse. The problem with buying a racehorse is that it is very expensive. It is not uncommon for the thoroughbred horses to sell for more than a million dollars. This makes it impossible for anyone but the very rich to buy a racehorse outright. However, there are other methods of investing in racehorses. Some of these methods are very affordable.

What some people decided to do was to create groups of investors. These groups allow a small number of people to pool their resources and invest in a racehorse. This is still an expensive venture. The typical partnership might require a person to put up twenty thousand dollars. While these partnerships are attractive to people who have the resources, they are still beyond the reach of average investors.

A new development in the racing world has allowed average people to invest in racehorses. Companies have created large scale investing groups. They sell shares to individual investors for as little as twenty dollars. The group might own several horses. These new groups function in a similar way to a traditional mutual fund. An investor purchases a share and receives a return on their money when the horses win a race.

The barrier to entry is much lower. There is a huge population of people who enjoy horse racing. The average horse racing enthusiast will spend most of their time at the track or the bookmaker. They love racing, but up until now they have not had the ability to get in on the action of ownership. Now they can.

If you are seriously interested in buying a share in a racehorse, then look at the different options available to you. Do you have tens of thousands of dollars to invest? If not, then you’re best option is to find an investment group that is open to small investors. The added benefit to investing in a large fund is that you won’ have to get involved in the bothersome details such as trainers fees and stable fees.

People who are involved in small investors groups that only have a limited number of members will often times have to get involved in the paperwork and billing. This is the advantage of buying into a large investing group. They handle all of the paperwork. This will allow the investor to spend more time at the bookmaker and watching the race.

This post comes from the Bookies Freebets blog, if you’d like to know more about horse racing in general, or how to score free bookmaker bets in Australia, check out their blog weekly for the hot tip.

Placing Retirement Funds in an Investment Property

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An investment property is a great option for anyone looking to put down a little cash to earn back even more, but especially for individuals seeking retirement. By investing your money, you not only have a vested interest, but you also have the benefit of regular monthly income you can count on. However, like most investments, an investment property comes with a few risks. So, before you take the plunge, consider a few things about purchasing an investment property first.

What You Need to Know

When you were purchasing your home, you probably did some research and financial planning prior to it. The same is true and even more so when purchasing an investment property. Before you select a property and invest you retirement monies into it, you need to know a few things.

1. The property must be “eligible.” – Depending on your investment options, certain property types don’t qualify. With most plans, you must purchase a business property, not a personal residence or second home. In most cases, even an occasional rental property doesn’t suffice.

2. You must have the cash. – Your financing options are typically more limited when it comes to investing your retirement funds in a property purchase. In most cases, you are not able to get a traditional mortgage, so you must have enough cash on hand with your retirement funds to make the purchase.

3. Diversifying is still important. – Investing in an income property is one of the best ways to get a regular, consistent return on your investment. However, it is still not the best business practice to put all of your funds in one account. Be sure to make considerations as far as diversifying your assets.

4. The property comes with different rules. – Because an investment property is a different type of purchase compared to a typical home purchase, there are a number of rules that surround the investment. For starters, you cannot live on the property or incur any direct benefit from the purchase.

5. You are responsible. – One final consideration you need to make before committing to a real estate property is the fact that you are primarily responsible for the success of the investment. Compared to investing in stocks or bonds from other companies, you are the sole proprietor in this instance, which can actually be a big plus for most investors. To avoid getting into any unsuitable situations, it is a good idea to guarantee a pre purchase inspection or house inspection prior to the purchase. If you’re looking to purchase in Melbourne, our friends at Home First Property Inspections can help with that.

What You Need to Do Next

Once you decide to place your money into an investment property, there are a couple of things you still need to do.

- Develop an understanding of how real estate works.
- Analyze the market.
- Find an appropriate property.
- Oversee a pre purchase inspection and insure the house inspection is accurate.
- Complete the transaction.

One of the biggest benefits of an investment property is being able to contribute additional funds to your retirement account. While you are limited on how much you can contribute to the account each year, there is no cap on how much a retirement account can earn. That’s worth investing in.

How People Reaching Retirement Age Can Protect Their Finances

Life passes through many stages and you need a good financial plan for each. A child becomes a responsible adult working hard and taking care of his family. Parents see their children grow up and leave the home. Then the senior citizens start thinking more seriously about their retirement finances. Here are tips on how people reaching retirement age can protect their money.

Develop a Plan

When you are young, you can afford to lose money because you can work more, but senior citizens are on a fixed income. Mature adults must make their money before they retire.

Start by developing a retirement plan. You might want to contact a lawyer to review your options. How do stocks, bonds and real estate fit in your portfolio? What are the legal and tax advantages of a superannuation? A professional solicitor can answer these questions.

Now is the time to get started. By setting aside a little money in savings today, you can make your golden years more financially secure.

Consider a Legal Trust

Unfortunately, old age brings diminished mental functions. We never really want to admit it, but there will be a time where we are not the best stewards over our investment portfolio. Create the necessary legal protections now before it is too late.

Estate planning strategies can protect certain assets in your portfolio and designate how you want income to be distributed to your beneficiaries. A legal trust offers another wall of protection against seizure by creditors. A lawyer can help you find a trustee to oversee your estate.

Preserve Your Capital

Inflation and taxes can quickly erode the financial value of your retirement portfolio. A good solicitor can discuss the advantages of different investments to preserve your capital. A gold-backed IRA can fluctuate with changing inflation offering you a nice hedge. Gold is a safe haven during many tough times.

As governments struggle with their own unbalanced budgets, they are likely to increase taxes. When you are retired with a fixed income, taxes can devour your retirement nest egg making it more difficult for you to maintain your lifestyle. Ask a solicitor how you can prepare before your taxes are raised.

When you plan ahead, you can ensure that retirement is truly enjoyable. You will have plenty of time later, now is the time to create your retirement plan. Talk to a professional to discuss your options.

This post supplied by the Alexander Law Caboolture. If you require sound legal advice on what to do when nearing retirement age, do not hesitate to visit their offices.