{"id":1714,"date":"2020-09-15T17:49:00","date_gmt":"2020-09-15T06:49:00","guid":{"rendered":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2020\/09\/15\/how-to-find-the-right-investments-to-help-reach-your-goals\/"},"modified":"2020-09-15T17:49:00","modified_gmt":"2020-09-15T06:49:00","slug":"how-to-find-the-right-investments-to-help-reach-your-goals","status":"publish","type":"post","link":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2020\/09\/15\/how-to-find-the-right-investments-to-help-reach-your-goals\/","title":{"rendered":"How to find the right investments to help reach your goals"},"content":{"rendered":"<p>To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance.<\/p>\n<p>Get an overview of the different types of investments so you can find the right ones to reach your financial goals.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"299\" src=\"http:\/\/internal.clientcommunity.com.au\/uploaded\/level\/2061\/goals-1.jpg\" width=\"569\" \/><\/p>\n<h3 id=\"jumpAnchor0\">Types of investments and returns<\/h3>\n<p>Investments can be classified as defensive or growth investments.<\/p>\n<h3>Defensive investments<\/h3>\n<p>Defensive investments are lower\u00a0risk investments. They aim to provide income and protect the capital invested. Defensive investments include cash and fixed interest investments.<\/p>\n<p>They&#8217;re typically used to:<\/p>\n<ul>\n<li>\n<p>Meet short-term financial goals (up to two years).<\/p>\n<\/li>\n<li>\n<p>Diversify a portfolio.<\/p>\n<\/li>\n<\/ul>\n<table border=\"1\" style=\"width: 100%;height: 214px\">\n<tr>\n<td>\n<p><strong>Investment<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Characteristics<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Risk, return and investing time frame<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Cash<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>\n<p>Includes bank accounts, high interest savings accounts and term deposits.<\/p>\n<\/li>\n<li>\n<p>Used to protect wealth and diversify a portfolio.<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>\n<p><strong>Average return over last 10 years:<\/strong>\u00a03% per year<\/p>\n<\/li>\n<li>\n<p><strong>Risk:<\/strong>\u00a0very low risk of losing money<\/p>\n<\/li>\n<li>\n<p><strong>Time frame:<\/strong>\u00a0short term, 0\u20133 years<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Fixed interest<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>\n<p>Includes government bonds, corporate bonds, debentures and capital notes.<\/p>\n<\/li>\n<li>\n<p>Used to earn a steady rate of income and diversify a portfolio.<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>\n<p><strong>Average return over last 10 years:<\/strong>\u00a03\u20134% per year<\/p>\n<\/li>\n<li>\n<p><strong>Risk:<\/strong>\u00a0low risk of losing money<\/p>\n<\/li>\n<li>\n<p><strong>Time frame:<\/strong>\u00a0short term, 1\u20133 years<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/table>\n<h3>Growth investments<\/h3>\n<p>Growth investments are higher risk and offer a higher potential return compared to defensive investments. They aim to give capital growth and some provide income (for example, dividends for shares or rent for property). But, price of growth investments can be volatile over short periods of time.<\/p>\n<p>Growth investments are typically used to:<\/p>\n<ul>\n<li>\n<p>Earn a higher rate of return (but this comes with higher risk).<\/p>\n<\/li>\n<li>\n<p>Meet longer term financial goals, five years or more.<\/p>\n<\/li>\n<\/ul>\n<p>Growth investments include shares, property and alternative investments.<\/p>\n<table border=\"1\" style=\"height: 242px;width: 100%\">\n<tr>\n<td><strong>Investment<\/strong><\/td>\n<td><strong>Characteristics<\/strong><\/td>\n<td><strong>Risk, return and investing time frame<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Property<\/strong><\/td>\n<td>\n<ul>\n<li>\n<p>Includes investing in residential and commercial property.<\/p>\n<\/li>\n<li>\n<p>Used to earn a steady rate of income (rent) and offer capital growth.<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>\n<p><strong>Average return over last 10 years:<\/strong>\u00a06.3% per year<\/p>\n<\/li>\n<li>\n<p><strong>Risk:<\/strong>\u00a0medium to high<\/p>\n<\/li>\n<li>\n<p><strong>Time frame:<\/strong>\u00a0long term, at least 5 years<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Shares<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>\n<p>Investing in a company. You get to vote on management and share in the profits.<\/p>\n<\/li>\n<li>\n<p>Offer capital growth and some provide income (dividends).<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>\n<p><strong>Average return over last 10 years:<\/strong>\u00a06.5% per year (Australian shares)<\/p>\n<\/li>\n<li>\n<p><strong>Risk:<\/strong>\u00a0high<\/p>\n<\/li>\n<li>\n<p><strong>Time frame:<\/strong>\u00a0long term, at least 5 years<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Alternative investments<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>\n<p>Includes private equity, infrastructure, commodities and other investments that don\u2019t fall into the investment classes above.<\/p>\n<\/li>\n<li>\n<p>Most aim to provide capital growth. Some have the potential for steady income.<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>\n<p>Most alternative assets are high risk.<\/p>\n<\/li>\n<li>\n<p>Returns differ depending on the type of alternative investment.<\/p>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"jumpAnchor1\">How to choose your investments<\/h2>\n<p>Before you invest, make sure you research your investment to understand:<\/p>\n<ul>\n<li>\n<p>How the investment works.<\/p>\n<\/li>\n<li>\n<p>How it generates a return and the type of return expected (capital gain or income).<\/p>\n<\/li>\n<li>\n<p>The risks involved for the investment.<\/p>\n<\/li>\n<li>\n<p>The fees and charges for buying, holding and selling the investment.<\/p>\n<\/li>\n<li>\n<p>How long you should invest to receive the expected return.<\/p>\n<\/li>\n<li>\n<p>Legal and\u00a0<a href=\"https:\/\/moneysmart.gov.au\/how-to-invest\/investing-and-tax\" target=\"_blank\" rel=\"noopener noreferrer\">tax implications<\/a>\u00a0of the investment.<\/p>\n<\/li>\n<li>\n<p>How the investment will contribute to your\u00a0<a href=\"https:\/\/moneysmart.gov.au\/how-to-invest\/diversification\" target=\"_blank\" rel=\"noopener noreferrer\">diversified<\/a>\u00a0portfolio.<\/p>\n<\/li>\n<\/ul>\n<p>You can find this information in the\u00a0product disclosure statement (PDS)<\/p>\n<h3 id=\"jumpAnchor2\">Decide how you&#8217;ll invest<\/h3>\n<p>When it comes to investing you need to decide whether you&#8217;ll:<\/p>\n<ul>\n<li>\n<p>do it yourself, or<\/p>\n<\/li>\n<li>\n<p>pay a professional to do it for you<\/p>\n<\/li>\n<\/ul>\n<p>Both options have their pros and cons \u2014 and you can, of course, do both.<\/p>\n<h3>Buy and sell investments yourself<\/h3>\n<p>The advantage of investing yourself is that you&#8217;re in control of all the decisions. It can also be cheaper than paying someone to invest your money. The risk is that you may overrate your expertise and may not diversify.<\/p>\n<p>If you invest directly, it&#8217;s important to plan and put in the time to research your investments. You should also\u00a0<a href=\"https:\/\/moneysmart.gov.au\/how-to-invest\/keep-track-of-your-investments\" target=\"_blank\" rel=\"noopener noreferrer\">keep track<\/a>\u00a0of how they&#8217;re performing.<\/p>\n<h3>Use a professional investment manager<\/h3>\n<p>If you invest in a managed fund, some managed accounts, exchange-traded fund (ETF) or a listed investment company (LIC) your money is pooled with other investors. A professional investment manager then buys and sells investments on your behalf.<\/p>\n<p>When you use a professional, you benefit from their skills and knowledge to make investment decisions. But you have to pay fees for this service. These can include management fees, administration fees and entry and exit fees.<\/p>\n<p>See managed funds and ETFs to learn more about these investments.<\/p>\n<h3>Investing with a financial adviser<\/h3>\n<p><span>A financial adviser can help you set your financial goals, understand your risk tolerance\u00a0<\/span>and find the right investments. See\u00a0<a href=\"https:\/\/moneysmart.gov.au\/financial-advice\" target=\"_blank\" rel=\"noopener noreferrer\">financial advice<\/a>\u00a0for more information.\u00a0<\/p>\n<h3>Invest through your super<\/h3>\n<p>If your goal is to save for retirement, contributing more to super is generally the best way to do this.<span>\u00a0See\u00a0<\/span><a href=\"https:\/\/moneysmart.gov.au\/grow-your-super\/super-investment-options\" target=\"_blank\" rel=\"noopener noreferrer\">super investment options<\/a><span>\u00a0for more detail.<\/span><\/p>\n<p><span>Please contact us on |PHONE| if you seek further assistance on this topic.<\/span><\/p>\n<p><span style=\"font-size: 10px\"><a href=\"https:\/\/moneysmart.gov.au\/grow-your-super\/super-investment-options\" target=\"_blank\" rel=\"noopener noreferrer\">Source : Moneysmart.Gov.Au September 2020\u00a0<\/a><\/span><\/p>\n<p><span style=\"font-size: 10px\"> Reproduced with the permission of ASIC\u2019s MoneySmart Team. This article was originally published at <a href=\"https:\/\/moneysmart.gov.au\/how-to-invest\/choose-your-investments\" target=\"_blank\" rel=\"noopener noreferrer\">MoneySmart<\/a><\/span><\/p>\n<p><span style=\"font-size: 10px\">Important note: This provides general information and hasn\u2019t taken your circumstances into account.\u00a0 It\u2019s important to consider your particular circumstances before deciding what\u2019s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete.\u00a0You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.\u00a0 Past performance is not a reliable guide to future returns.<\/span><\/p>\n<p><span style=\"font-size: 10px\">Important Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.<\/span><\/p>\n<p><span style=\"font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-size: 13px\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance. Get an overview of the different types of investments so you can find the right ones to reach your financial goals. Types of investments and returns Investments can be classified as defensive or growth investments. Defensive [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-1714","post","type-post","status-publish","format-standard","category-general-articles","entry"],"_links":{"self":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/comments?post=1714"}],"version-history":[{"count":0,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1714\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/media?parent=1714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/categories?post=1714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/tags?post=1714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}