Gearing
Gearing is an aggressive form of investment planning where you can use borrowed funds to invest in a non-super environment. While the basis of it is to increase your return at a greater rate than the cost of the finance, there are risks involved with this strategy. While potential gains are magnified when the markets are good, potential losses are also possible when markets are bad.
At First Capital Financial Planning, we determine whether this strategy is appropriate to your situation and your risk profile, and what level of gearing is best suited to your needs. It is also our responsibility to monitor your investments, and ensure that the strategy is still working for you and the risks are controlled.
