Accounting & Financial Advisory for Individuals & Businesses

Gearing

Borrowing money to invest is commonly known as gearing.  Gearing can accelerate both profits and losses of your investment because you are investing funds that you would not ordinarily have access to without borrowing.  For gearing to be successful in the long-term, you should invest in assets that produce a total return that exceeds the after-tax costs of financing the investment (such as the interest on the loan).

Contact IEC to see if gearing is appropriate for you.

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