Methodology
Foundational portfolio
Our goals based advice process works to build your foundational portfolio. This process is broken down into 3 phases. Laying your foundation, build your structure and reap the rewards. What stage you are in depends on your financial situation but the end goal is the same, to develop a portfolio to fund your lifestyle. This is an overview of some of the key points.
Laying your foundation
- Set and maintain a budget; create surplus cash-flow through living within means
- Set long term lifestyle goals i.e. How much does your ideal lifestyle cost in today’s dollars?
- Build deposit towards first investment property (target $75-$100K)
- Alternate option is to demonstrate savings track record and utilise parents equity to act as guarantor for deposit gap
- In Superannuation utilise employer contributions to build a growth focused portfolio (Australian & International Shares/ETFs)
- Review your estate plans
Build your structure
- First Property – Own Home or Rent-vest?
- Owning your own home is lifestyle decision. Use cycles knowledge to determine if it is a good time in cycle to buy family home. For example, If you live in Brisbane the time to buy might be different than if you lived in Sydney
- Continue to buy capital city rental properties, utilising the growing equity to the point where gross assets are sufficient to sustainably fund lifestyle (once debts paid off).
- 5% rule. For example $2m of assets for $100Kpa lifestyle costs (combination of income & capital growth)
- Maximise concessional contributions to super
- Deploy all surplus cash-flow (after concessional contributions) towards debt reduction between property purchases (either offset account or paying down loan/s). Your capacity to purchase each additional investment property will be a combination of capital growth & debt reduction
- Regularly (annually at a minimum) review your budget & lifestyle goals
- Cycle considerations – there will be times to pause the growth strategy to ensure debts are manageable through market downturns and ensure you are not over extended
Reap the rewards
- You now have a self-sustaining portfolio funding your lifestyle, where work is optional
- Your choice – pay down debt or keep building!
- Aggressive/ambitious investors may want to continue to grow their assets base
- You can now consider more speculative investments such as developments, commercial property, private equity/venture capital, alternative assets (eg cryptocurrency, precious metals etc)
- Continue to maximise concessional contributions while still employed, up to $1.6m cap (per individual)
Investment methodology
Flack Group’s knowledge and understanding of how the economy moves through a repeatable, scientific process of Boom then Bust enables us to advise you on your investments.
By combining this knowledge with your goals and life stage we are able to work with you to establish your own economic cycle action plan.
We apply our intricate knowledge of this process to provide dynamic advice on both your asset allocation and investment strategy depending on your specific circumstances, where we are in the cycle and what we expect to occur next.
Dynamic investment advice is provided to clients on property and share market investments within the context of the Flack Group Economic Cycle Action Plan.
By understanding how the business and investment cycles interact and what to expect during different times in the cycle, allows us to make decisions based not on emotions but upon sound economic theory.
Economic cycle action plan

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