3 steps to retiring like a celebrity

3 steps to retiring like a celebrity

Red carpet, like a celebrity

When Aussie soap star, Blair McDonough began investing he thought property was the best option, however he’s since learned that “there is a lot more to investing”.

Speaking with the founder of No More Practice Education (NMPE), Vanessa Stoykov, the Home and Away and former star of Neighbours and Big Brother said that while one in five Australians own an investment property, property isn’t always the best path to wealth accumulation.

Mr McDonough explained that this revelation came about after he realised he was unprepared for retirement and that property wasn’t helping him achieve his goals.

 

“What I realised, and what has changed my and my family’s life is that it isn’t necessarily true [that property is the best path to wealth accumulation] – there is a lot more to investing than just property.”

Ms Stoykov added: “Blair was the perfect example of a typical Australian investor. When we began the series, he was trying his best. However, unfortunately he didn’t have the tools to understand what was realistically going to help him and his family long term.”

The television series, Learn from the Money Masters tracked Mr McDonough’s journey from a state of retirement unpreparedness to being “a successful investor”.

Tips from a Summer Bay star

Mr McDonough has since sold his investment property in order to fund a more diverse portfolio and has hired a financial adviser.

“You need to be prepared to make a little bit of an investment when it comes to planning, so that you can have the best help to grow your wealth and security for the future,” he said, explaining his decision to engage an adviser.

He also created a “realistic budget” to help get him and his family on the right path for a comfortable retirement.

These steps were informed by the three key lessons Mr McDonough learnt.

“Don’t put all of your eggs in one basket”

(NMPE) said the actor had fallen prey to an assumption that property was the “only way to get ahead”, as many Australians do.

However, NMPE advised: “Having a wider range of investment options (such as shares, etc.) are a much more stable long-term strategy.

“Don’t be scared of ALL debt”

It’s “important to realise that not all debt is good”, NMPE said. Likewise, not all debt is bad. The education consultancy said it’s “essential” that investors understand the different debt types and how they can impact a portfolio.

“The key is also planning for debt, and being constantly aware of it.”

“Be patient”

Contending that investment strategies need to be long term, NMPE said impatience or shakiness in the face of falling stocks can impact the success of strategy.

Behavioural economist and 2017 Nobel prize winner for economics, Richard H Thaler has identified  the compulsion to intervene as a critical human cognitive bias which can see humans forget the way they misunderstand causality and their own competence. As such, solutions may be put in place which can lead to failure".

“Being patient is easier said than done, but it’s essential," NMPE concluded.

3 steps to retiring like a celebrity
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