Products / Services > Financial Planning > Investment
FIRST STEPS TO INVESTMENT
If you've ever flicked through an investment magazine or listened to the financial gurus on television or radio, you'll realise that the investment choices are many.
In fact, investments can vary enormously in their earnings, how they are taxed, their timeframe suitability, and of course their volatility or risk. It's no wonder that newcomers feel apprehensive.
Before you take your first steps, you need to consider:
Your
investment goals
Are you saving for a world trip, your children's education, your
retirement nest egg, or do you need additional income now? Your investments
need to match the goals they are to achieve.
Your
financial circumstances
How much money do you have to invest - and how much debt? What
are your current and future commitments? How much super do you have? Perhaps
you have surplus income to invest.
Your "risk
tolerance"
Everyone would like high returns but these usually mean greater
volatility - your investments may rise and fall in value over time. How
much volatility and risk are you prepared to accept?
Your
investment timeframe
For longer term investment goals you should consider investments
with good growth potential, such as shares. For short-term goals, choose
investments that are less volatile.
Your
tax situation
Investment earnings are taxable but some investments, such as
Australian shares, offer tax benefits. You should also consider the tax
benefits of income splitting, borrowing to invest (gearing) and for retirement
savings, superannuation.
Seek
professional advice
For specialist advice on investment and on strategies for wealth
creation, superannuation saving and retirement planning you should talk
to a professional financial planner who is licensed to provide advice on
the full spectrum of investments, with access to ongoing training, sound
investment research, and the latest government/legislative information.
Call to arrange a free, no-obligation meeting with our Financial Planner, who can help you take your first steps to investment and provide for all your financial planning and needs.
