Page 8 Advertisements Column 4

Otago Daily Times, Issue 21976, 10 June 1933, Page 8

Investment Talks by “ The Old Counsellor ” No. 8: THE ACCUMULATION PROBLEM OP THE “IRREGULAR INCOME.” A friend whose Incomes fluctuates from month to month and year to year recently ashed how he could work out an Investment programme that would permit him to make the same financial progress as one with equal but regular Income. This question. I know, troubles not a few Investors and potential investors; owners of business enterprises, salesmen, physicians, dentists, lawyers, writers, and others find REGULAR saving and Investing under fluctuating conditions quite a problem. Isn’t it logical to say, therefore, that, in their case, the need for definite financial planning is often greater than for people who receive so much a month? Seeing that long intervals may on occasion elapse when there will bo very little income, provision should be made for these periods .during times of “ plenty." , Now, however Irregular the Income may bo. It seems obvious that, over a given period, the total spending must be held below the total Income—based on a similar Interval—before any reserve can he established to provide for Investments. The simplest plan 1 have found is to strike, sny, a monthly average of living costs, based on previous experience—modified, If necessary, to create a reserve. Having set your moifthly limit, plan consistently to keep within It, ami over a period a surplus for Investing will then accumulate. The surplus, as it becomes available, should be Invested conservatively. As the surplus Is to stand as a bolter against times of lean earning power, the investments selected first should be readily marketable, or he those whlCh would provide acceptable security if it became necessary to pledge them for loans. After thus providing for an available source of cash when needed, subsequent Investments should be made with the purpose of earning as much INCOME a's Is consistent with safety. The Old Counsellor Securities Corporation (N.Z.) Limited, Public Trust Building, Dunedin. Telephone 11-777.