When it comes to building wealth and securing your financial future, property investment has long…
When you think about your future, you may be considering how you grow your money.
When it comes to growing your money, I am a huge fan of the concept “Work smarter, not harder”.
While working hard in a good-paying job is enormously beneficial to your finances, you may like to also think about growing your money through investments.
There are so many investment options out there, and it may be hard for you to choose which one is suited for you. In this article, we will discuss the different investment options available in Australia to help you make smart decisions to build your investment portfolio.
Ready to work less and live more? Let’s get started…
Investment Option #1: Cash Investments
Cash investments are probably the most uncomplicated type of investment because you can just put your money in a savings account or term deposit and make it grow by constantly adding more.
However, the returns on cash investments are often much lower compared to other types of investment products. You need to wait a long while for your money to grow a significant amount.
Investment Option #2: Fixed Income Investments
The Australian Government and some private companies offer fixed-income investments, often in the form of bonds. This type of investment will allow you to earn a set income for a specified period, provided that the principal amount will be settled at the end of the term.
One example of this type of investment is the government bond. Government bonds can provide you with interest payments, and once they reached their maturity, you can withdraw the principal amount you invested.
Purchasing shares in a company can be a tremendous opportunity, but it comes with risks, too. There’s no certainty that your invested amount will increase—the potential returns depend on the company’s future performance. Your investment will only prosper if the company’s shares grow in value, and you can even receive a portion of the company’s profit in the form of a dividend. However, if the company fails, you will lose your investment.
Investment Option #4: Managed Funds
Managed funds have a higher chance of success if you have an efficient and effective wealth manager. This type of investment works by pooling your assets with other investors. Managed funds are an excellent start for investment beginners because you can diversify your investment with a much smaller starting balance. Your fund manager can spread your investment across various financial products, offering much-needed diversification.
Investment Option #5: Investment Property
Properties in Newcastle – and all around Australia – are booming at the moment. With all-time-low interest rates, it has proven to be an opportunistic time for investors to purchase an investment property to help grow their wealth.
If you want to rent out your investment property, you can earn rental income and would then be entitled to tax deductions. If you are planning to renovate and resell, you may be able to potentially benefit from capital growth and increase your investment returns.
Financial stability and security are certainly attainable through wise investment decisions.
While investing can seem complicated and time-consuming, it doesn’t have to be that way with knowledge and expert guidance. It’s a great idea to consider investing while you’re young, so you’ll have more time and energy to build your investment portfolio.
Need some investment advice? If you are looking for an investment adviser in Sydney, the Central Coast, Newcastle, or Port Macquarie to help you with your investment planning, Coastal Advice Group is here to help!
Our financial advice team can help you establish direction for your investments to achieve your financial and lifestyle goals. Schedule your meeting with us today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers and Coastal Advice Port Macquarie are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.