Investments

Thinking About Investing?

If you’re ready to see your money grow, investing might be just what you need. Everyone’s situation is different, but let’s break down the basics. Before diving in, remember it’s always a good idea to chat with a financial adviser first. At Precept, our advisers are here to guide you through your investment journey.

Setting Your Investment Goals

What are you saving for? Your goals will shape your investment choices:

• Short-term goals: Like saving for a car or a holiday in the next 6 months to 2 years.
• Medium-term goals: Things you’re aiming for in the next 2 to 5 years, maybe starting a business.
• Long-term goals: For plans more than 5 years away, like saving for your child’s education.

Understanding Investment Strategies

Every day, you might hear about different investment opportunities. That’s why knowing a few basic strategies is key. Strategies like spreading your investments (diversification) and investing a fixed amount regularly (dollar-cost averaging) are great ways to work towards your goals.

Picking the Right Investment for You

It’s important to spend time understanding your options. Different types of investments, or asset classes, can help you reach your goals in a way that suits you best. Investing comes with risk, and an important part of the conversation before you invest is your tolerance to risk. Your comfort with risk depends on:

• How long you plan to invest
• How okay you are with taking risks

Some investments are more unpredictable than others. If you’re looking long-term, you might be able to handle the ups and downs of the market. But if your goal is closer, a safer approach might be better. Your risk tolerance will help you decide whether to go for riskier options or play it safe.

Types of Investments

Depending on your risk comfort, here are some options:

• Cash (like savings accounts, term deposits): Low risk, but maybe lower returns.
• Fixed Income (like bonds, debentures): Usually low risk, and can be linked to inflation.
• Property (like buildings, land): Moderate to high risk.
• Equities (shares): Higher risk because of economic and global factors.

Other Investment Ideas

• Insurance Bonds: Good for medium to long-term goals, offering tax benefits. You can invest a lump sum or make regular payments.
• Managed Funds: Your money is combined with other investors’ and spread across different asset classes, managed by professionals.
• Property Investments through Funds or Super: This can give you access to a range of properties, spreading your risk.

Ready to Talk Investments?

If you’re thinking about investing and need some advice, our team of qualified financial advisers is here to help. Reach out to us, and let’s make your money work for you!