Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired live on Friday 28 February 2025. The topic for this week is: The Gearing Strategy. You might have heard about it through residential property investment but did you know that there are 3 key ways gearing can work when investing? In this episode Luke explores these 3 ways and some of the important issues you might consider when using the gearing strategy to help you grow your investments. Of course gearing doesn’t come without risk, so as always, seek advice if you need help.
Thank you for joining us live on 2CC, YouTube or your favourite podcast streaming service with ‘The Strategy Stacker – Luke Talks Money’.
Key topics covered include:
- What is gearing?
- What are the three key ways you can go about gearing and how do they work?
- Gear an investment against a home or investment property
- Gear against a margin loan (also called margin lending)
- Gear using an investment asset that is internally geared (that is, it’s managed within the investment such as an Exchange Traded Fund or a Managed Fund)
- What is a margin call and what do you have to do when it happens?
- What is your asset allocation and why should you consider it when gearing?
- What time frame is appropriate for using a gearing strategy?
- What is your income profile and why does it matter?
- What is your true attitude towards risk?
- What is your loan to value ratio when using the gearing strategy?
- Luke shares his top issues to consider before you use a gearing strategy for your investment portfolio.
Our podcast is also available on Apple Podcasts, Spotify and YouTube – ‘The Strategy Stacker – Luke Talks Money’
Are you considering using the gearing strategy to help you grow your investment portfolio?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement (including transition to retirement). Simply make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation.
Luke will return to 2CC to talk about other ‘Money Matters’ next week, we hope you can join us. You can also catch up with ‘The Strategy Stacker – Luke Talks Money’ podcast at a time that suits you.
We look forward to your company again. Luke’s book Smart Money Strategy is out now.
