Everyone wants to have a comfortable retirement. However, several factors can affect your retirement lifestyle.…
Everyone wants to be wealthy, but it’s not always clear how to get there. There are many options and investment strategies available depending on your investment timeframe and how much investment risk you’re willing to take and the timeframe for your investment of choice.
This makes it difficult to know where to put your money to achieve a worthwhile return. However, by doing some research, there are some good investments for young Australians which will allow you to start saving for the future today.
Here are some of the most popular investments you can consider whenever you’re starting out:
You can buy shares in Australian companies directly through the stock exchange, through managed funds, and through your superannuation. As the value of your shares grows over time through capital growth, they can also pay out part of the profits as income which you can receive known as a dividend. Shares are great investments if you are willing to take investment risk, and they are also one of the most popular investments to make while you are still young, as you have a few decades to ride out any short-term market downturns.
Exchange-Traded Funds (ETFs) offer access to a specific market segment or asset class. This is a great way for young investors to get exposure to a wide range of factors at once. Some of the most popular ETFs with young investors could include oil and gas, agricultural and advanced materials.
3. Managed Funds
Managed funds are designed for investors looking to outsource the selection process to a Fund Manager and are happy to leave their money in for a long time without necessarily knowing what individual shares or companies they are investing in. They work by investing in hundreds or thousands of shares all at once. The Fund Manager decides which companies you should invest in to get a diversified portfolio.
Superannuation is a retirement investment solution in which your employer is required to pay 10% of your gross income into the superannuation fund you nominate. It is a great way to save for your future as it can offer higher profits in the long term and the ability to receive a tax deduction for additional contributions you make.
In addition, there is also the ability to commence saving for your first home deposit under the Federal Government’s First Home Loan Deposit
Scheme. Click here to learn more.
Property is a great investment if you invest in an area that is growing or if you are willing to invest over the longer term.
Investing in property can come in the form of residential, commercial or property trusts. Ideally, you should consider the purpose of your investment to live in, rent out, future development or just a long-term hold with a passive income (rent) and hopefully gain capital growth over time.
The great Australian dream has been to own your own home and buy an investment property with around 20% of Australians achieving this goal. Before you make any decision to borrow or buy your first property, why don’t you ask someone who has been through it before?
Bonds can be a great way to save money and get a steady return from your money. If you have an emergency fund and need to save some cash and have a long time left to save, bonds are among the most popular investments.
They are typically safe investments, meaning they are less risky than other strategies, and you can get a guaranteed return over a set time.
Check out Popular Investments that Match Your Needs!
There are many different ways to invest money, and all of them have their pros and cons. However, by carefully considering your time horizon and risk tolerance, you can make some educated choices that will allow you to start saving for the future.
It’s not easy to make investment decisions, and Newcastle Financial Planning Group is here to help. Our financial planners in Newcastle can develop a tailored strategy based on your financial goals, risk tolerance, investment time frame and circumstances. Get in touch with us today to learn how we can work together to build your wealth and achieve your goals!
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