New Year’s investment resolutions
Over the holiday season many of our customers will be thinking about their finances and making New Year’s resolutions to improve them.
We have highlighted the top 10 investment tips to help meet your longer term goals.
Top 10 investment tips
- Clarify your investment goals – having a clear understanding of your goals will help you select the most appropriate investments to achieve them.
- Pay yourself first – Set aside some of your pay packet for your longer term goals. List all your expenses then work out how much you can afford to save each month. With the surplus put this money aside first so that you don’t spend it on other miscellaneous items. That way you will be able to meet your longer term goals.
- Set up an automatic payment – to help you organise your contributions to your investment(s) so you save automatically!
- Invest your savings to grow – make the most of your savings by investing them. The type of assets you invest in will depend on your financial needs and objectives.
- Harness the power of compound interest – each dollar you invest earns a return. If you reinvest that return, it can earn more dollars, allowing your investment the potential to grow much faster.
- Diversify your wealth – spread your risk across each of the main investment types (for example shares, property, fixed interest and cash) with an aim to achieve more consistent returns. In other words, ‘don’t put all your eggs into one basket’.
- Choose tax advantaged investments (not tax driven investments) – consider sound investments that can also offer you tax benefits.
- Time in, not timing the market – it’s not timing the market that’s key, but rather the amount of time you’re in the market.
- Get some advice – speak to an expert who can help assess your needs and goals.
- Do something now – the sooner you get your investment started the sooner you’ll achieve your goals.
^Michael – Practice Development Manager
Investment Performance: Past performance is not a reliable guide to future returns as returns may differ from and be more or less volatile than past returns. The ten tips were sourced from Colonial First State www.colonialfirststate.com.au Eastwoods Wealth Management Pty Ltd, ABN 17 008 167 002, AFSL 237853.