The idea of investment is simple – create a circumstance where less develops into more. After that, there’s a bit to consider.
Like most people you might think you don’t have any investments. However, most people have superannuation and/or indirect investments such as managed portfolios. Some people have direct investments such as shares and property along with term deposits. Some of the big purchases you make in your life are investments, too. It’s important to think about investing now not just for returns later, but also in terms of how your finances are structured to affect your tax position and other relationships. It’s worth investing in a conversation.
Figuring out which investments can best help you deliver your comfortable retirement requires an understanding of:
- What your investment options are;
- How different types of investments tend to perform over long periods of time; and
- Your financial goals, so you can pick an investment mix suited to your specific retirement investment objectives and risk tolerance.
Your primary investment choices can be broken into four general asset categories: shares, property, fixed interest/bonds and cash.
Though each may play a role in your long-term strategy, investing directly in shares, property, fixed interest and cash is not always easy for the individual investor.
Creating the ideal investment mix involves identifying your personal objectives and risk tolerance and diversifying your investments accordingly. That is, choosing what’s appropriate for you and acquiring the appropriate investments.
Monitoring and modifying your investment mix over a long period of time can also be a daunting and time-consuming task.
Your Compass Financial Solutions adviser will determine your profile through a confidential client data collection form and advise you of your best options to achieve your goals.