The current market performance, as well as new government incentives, are opening the doors for new investment opportunities, as we see more people take advantage of this, how do you choose the right investment choice for you?
Firstly, it’s worthwhile doing some background research into the types of investment choices available and the different ways to invest your money. In Australia, the dream of owning a home still stands strong and makes investing in the property market the obvious investment choice but you may just find the return on investing in shares as strong as the property market. By researching each area, you will be able to make a more informed and confident choice about your investment selection and may even find new investment types to diversify your portfolio.
The property market in Australia has always been a favourite investment choice, this is because many like the security of a brick and mortar investment. Property can be less complex than other investment choices and for many, it simply feels familiar. Like any investment the property market does go through some volatility, however, over the last 20 years the property has grown at a strong rate of 9.25% per annum. When it comes to property, location, property type, market performance and current interest rates should all be taken into consideration. With new State relief packages such as the HomeBuilder grant as well as First Homeowner Grant, new homeowners may be eligible for benefits up to $40,000, making property an appealing choice for those making their first investment in 2020.
You can read more on property investments here:
There are many common misconceptions around shares: “shares are risky” or “shares don’t perform as well as property” where in fact over the last 20 years Australian shares have performed an average 9.4% putting it above property in terms of performance as shown in the vanguard index below.
When you buy shares, you are essentially buying a part of that company making you a shareholder. You may decide to buy shares with a lump sum of savings or gradually build your portfolio by making regular contributions. The longer you have your shares invested for, the greater the potential gain through market performance and compounding interest, which is why shares are usually considered a medium to long-term investment.
You can read more on investing in shares here:
As shown in the Vanguard Index above there are various ways you may choose to invest your money, from listed property, shares, bonds to cash. The graph shows the performance of each investment type over the past 20 years. Although the performance of each investment type varies and goes through volatility, they do all display a trend of upward growth over the last two decades.
You can read more on ways to invest your money here.
Our Wealth Management approach is focussed on selecting the most appropriate investments for the enhancement and protection of your wealth, based on your personal needs.
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When choosing the right investment for you, your personal preference for risk, your stage of life, your investment horizon and your long-term dreams and goals need to be considered. Many people opt to use a managed fund or collection of investments so they can access a variety of investment types. For many, this is also how our Superannuation is invested. These can be great tools, but they are not always created equally. What one fund calls ‘balanced’ may have more inherent risk than another fund’s more ‘aggressive’ options. Without a bit of expertise in this area, it can be very difficult to select your best options.
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In our client story “fiercely independent and feeling strong” Angela shares her story investing with the help of our Financial Adviser Steve Sewell.
“I am limited in my knowledge of markets and investments, so Steve has been instrumental in putting structures in place to set me up financially. It was a leap of faith for me – to put such responsibility in someone else’s hands, but I trust Steve wholeheartedly, and I don’t say that lightly.”
You can read her full story here.
The work we do with our clients is underpinned by a set of beliefs we have about Wealth Management. These beliefs form our Wealth Management Philosophy. Our role is to ensure you are making an informed and carefully evaluated investment choice that will give you the best chance to live your best possible life.
Speak with us today to discuss the right investment choice for you.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
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