![\"\"](\"http:\/\/internal.clientcommunity.com.au\/uploaded\/level\/2063\/asic.jpg\")
<\/p>\nYour game plan<\/p>\n
‘Plan your life, live your plan.’ Yes, it’s a clich\u00e9. But when it comes to investing your money, it makes a lot of sense to have a plan.<\/p>\n
Putting a plan together involves developing strategies and choosing the right investments.<\/p>\n
<\/p>\n
The starting point is getting an accurate picture of your current financial situation. Use the MoneySmart\u00a0budget planner<\/a>\u00a0to get a snapshot of your income and expenses and the\u00a0asset stocktake calculator<\/a>\u00a0to work out what you own and what you owe.<\/p>\n Confirm your goals<\/p>\n Goals will become the backbone of your investment plan. Write them down, with a timeframe for each goal. See our section on\u00a0goals\u00a0and risk tolerance<\/a>\u00a0for more information.<\/p>\n Understand how much risk you want to take to achieve those goals by reading our article on\u00a0risk and return<\/a>. Your plan will be the pathway you take to achieve your goals. The course you take will be shaped by where you are now and where you want to get to.<\/p>\n Here are some strategies that someone with a short-term goal could consider:<\/p>\n Once you know how much you can afford to save, set up a direct payment to a high interest savings account\u00a0–\u00a0either\u00a0from your pay or from your account after each pay day.<\/p>\n<\/p><\/div>\n Pay off credit cards and personal loans first to free up additional cash to save<\/p>\n<\/li>\n Save a fixed amount each pay period – do a\u00a0budget<\/a>\u00a0to ensure your money is going towards the important things<\/p>\n<\/li>\n Choose a cash investment with good security and easy access such as a high-interest\u00a0savings account<\/a>\u00a0or\u00a0term deposit<\/a><\/p>\n<\/li>\n<\/ul>\n Work out how long it will take to meet your savings targets.<\/p>\n savings goals calculator<\/a><\/p>\n David has just bought a new car for the first time in his life. Over the last 20 years he’s bought a few\u00a0cars that have ended up costing him a lot of money. David has decided he will buy a new car every 5 years, about when the new car warranty expires. He expects the changeover cost to be $25,000.<\/p>\n David has decided to:<\/p>\n invest in a\u00a0managed fund<\/a>\u00a0that allows him to get started with just $1,000<\/p>\n<\/li>\n choose a balanced portfolio, as he wants better returns than a bank savings account, without being too aggressive<\/p>\n<\/li>\n contribute $100 to the fund each week.<\/p>\n<\/li>\n<\/ul>\n Because he has planned carefully, David knows that in about 5 years’ time his investment will be enough to buy a new car. There will also be enough to pay any capital gains tax he incurs as a result of the investment. If markets are down at the time, he will wait until they pick up before buying the car.<\/p>\n If you’re considering topping up your super, ask how long you have until retirement. If it’s more than 10 years, a growth investment option could provide for a better outcome.<\/p>\n<\/p><\/div>\n Making extra supernnuation contributions can be a great way to invest over the long term.<\/p>\n High and middle-income earners can benefit from making contributions out of pre-tax earnings\u00a0– this is known as\u00a0salary sacrifice<\/a>.<\/p>\n Lower-income earners can benefit from making\u00a0after-tax contributions<\/a>\u00a0that attract government co-contributions.<\/p>\n A balanced or growth option will grow your money faster over the long term, provided you can handle your balance taking a dive every now and then.<\/p>\n If you are saving for a pre-retirement goal you will need to invest outside super\u00a0–\u00a0a balanced or growth option in a low-cost managed fund would be a suitable investment.<\/p>\n A good financial plan will outline your needs and goals and set out the best strategies for achieving them. Once you’ve developed your investment plan, your next challenge will be to\u00a0choose your investments<\/a>.<\/p>\n Please contact us on |PHONE| if you seek assistance on this topic.<\/p>\n Source : ASIC Moneysmart November 2019\u00a0<\/a><\/span><\/p>\nUnderstand risk<\/h4>\n
Short-term investment goals (1-3 years)<\/h3>\n
\nSmart\u00a0tip<\/h4>\n
\n
Medium-term investment goals (4-6 years)<\/h3>\n
\n
Long-term investment goals (7+ years)<\/h3>\n
\nSmart\u00a0tip<\/h4>\n