There are many ways to accumulate wealth: spend less than you earn, invest in Australian or International equities, direct property or even with term deposits. You may even leverage some of these investments by borrowing funds from a financial institution. All have their advantages, as they do their disadvantages.
What’s important is to understand why you want to accumulate wealth – understand the goals you want it to help you achieve. Once we understand that then we can help find the investments that have a high probability of achieving the returns you need, along with the level of volatility you can tolerate.
Everyone wants high returns, low fees, little tax and no volatility. The reality, no matter what anyone tells you, is that the higher the predicted returns, the higher the likely volatility, fees and often tax. These factors are why it’s important to understand your goals. Without knowing them, how can one determine if the fees, tax or volatility are worth it?