Investment planning can be confusing and scary. It is one of the services we offer in our Perth office. When investment planning is done right, your money can make money for you. We cannot offer specific information over a blog; you will have to contact our office in Perth for a consult if you would like specific advice. However, we can provide some general tips to get you pointed in the right direction.
Do You Have Goals Yet?
Our parent company, AMP Financial, has a lot of good information on their website, https://www.amp.com.au/. On their page entitled “Understanding Investments,” they recommend that you formulate short term, medium term and long term goals. Short term is defined as in the next six months to two years. Medium term is the next two to five years. Long term is anything further down the road than five years.
Choosing the Correct Investment Vehicle
On AMP’s webpage called “Choosing the right investment option,” they explain how to decide which forms of investments are right for you. The first factor to take into consideration is your risk tolerance. This is determined by combining your attitude towards risk with the amount of time you have to invest.
Generally, the higher the potential return, the higher the risk. However, that isn’t always the case and our financial planners are experts at finding investments that have above-average risk to reward ratios. Here are some risk-reward factors of popular investments.
If you “invest” in a savings account or term deposit, the risk is extremely low, but the returns are also low. Fixed income investments such as bonds or debentures are low risk, but can provide average returns if they are linked to the rate of inflation.
Equities or shares are seen as very high risk and volatile. They can, however, provide high rates of return.
Call Approved Financial Planners Today
To learn more, call our office in Perth: 08 6462 0888.