Investing

"To many people, investing, is depositing
money with a bank, anything beyond that
goes into the too hard basket, often because
of a lack of knowledge."

Astute investors soon realise they can achieve better returns on their money.

The reason it is important to gain a better return on your investments is the ongoing rising cost of living. Imagine for a minute, if you invest the proceeds from an estate or the sale of a house in the bank and leave it there, after a number of years all you could buy would be a small flat or unit.

Conversely, setting aside money for a world trip in years to come, the rise in living costs will erode the buying power of your deposits or savings to a point where instead of purchasing a trip around the world, your money would only buy “a return ticket to Australia”. This is a problem that people have been grappling with for years, it’s called inflation.

The problem of reduced buying power and inflationary effects on bank deposits was one of the main drivers in the original formation of the profession known as “Financial Planning”.

A professional Financial Planner can assist you to achieve better returns on your money and at the same time increase your knowledge and understanding of investing.

Not everyone is the same. It is important to establish with your Financial Planning Consultant what your goals and objectives are:

• Why you are investing?

• How long are you investing for?

• What level of risk are you comfortable with?

• Do you need access to monies for emergencies or items, such as a motorcar replacement, travel, health care or a change of housing?

"This is when the services of a Financial
Planning Consultant can really help."

Asset Allocation and Independent Research.

It is wise to spread your investments over a range of asset classes, such as cash, fixed interest, property, and equities. Some of the investments may be international as well as local. This overall process is called “Asset Allocation” and is critical in reducing risks and improving returns.

How do you know which investments to use and when? That is where “Financial Research Houses” come in, selecting Investments that consistently perform in the Top Quartile of Investment Funds.

"This means Real Gain, Enhanced Returns
and Lower Risk."