Investment Planning
Define your goals
Without clear long-term financial goals it's easy to spend your money on lifestyle purchases without thinking too much about the future.
To set investment goals you need to be as specific as possible about what it is you want to achieve in the future. For example, you know you want to retire, but when? You know you want to send your kids to school, but to a private or public school? You can do this on your own or with the help of a financial adviser. If you are married or in a long-term relationship, spend some time together discussing your joint and individual goals.
Setting a plan
Once you've decided what you want from your money, the next key to successful investing is to establish some very clear and realistic timeframes. Exactly when do you want to buy a house? Or when do you want to retire?
Your investment time horizon is the number of years between now and the time when you expect to withdraw a large portion of your investment — in other words, how many years your money will be invested. The time over which you intend to invest will determine which investments are right for you. Generally, investors with a longer investment time horizon have a greater risk tolerance because they are more ale to ride the ups and downs of volatile investment markets in the hope of earning higher returns.
Staying the course
No matter what type of investor you are, it is important to keep your plan on track. Sitting down regularly and reassessing your goals, time frames and asset allocations allows you to fine-tune your strategy and keep your risk within acceptable levels. As your circumstances change so may your investment goals and timeframes.
Need a financial adviser?
Just as you need to take care to maintain good health for your future, care must also be taken in getting the right financial planning assistance to help make sure you have the savings you need for the lifestyle you want. A skilled professional can help you identify investments that not only achieve the greatest absolute return over the years, but also subject you to the lowest overall taxes along the way.
To get in touch with a financial adviser, contact us on 1800 458 272.
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