Financial Pearls of Wisdom

These are indeed weird times, and it is easy to end up catastrophising and worrying about the future.

Instead of worrying, have a read of the following tips and if necessary, act now. After all, it’s your future – and it could be here sooner than you think.

1. What do you want and how will you get it?

What are your goals and objectives for your future? Write out a plan that sees you enjoying the fruits of your labours. Then make sure your finances can achieve your goals. If not, do something about it now while you still have time. Be realistic and set achievable timeframes.

2. It’s not just about returns; remember the risks

Every investment has some degree of risk. Cash is considered the safest as there’s a good chance your money will still be in the bank when you need it. To achieve higher returns and make your money work harder, you need to take appropriate risk. Understand the differences between the various investment assets available and make your decisions wisely.

3. Share it around

To help reduce risk, share your investments across several asset classes - and within those asset classes as well..

4. Don’t forget super...

Superannuation will be your bank account when you are no longer working so you should be considering ways to boost your superannuation balance prior to retirement. But be aware the tax benefits are not always equal so make sure you have a balance of inside-super and outside-super investments.

5. ...or tax

Tax is the trickiest area of all. Always make sure you get good advice on investing tax-effectively

6. Retirement can last another lifetime

With medical technology and improved lifestyles we are living much longer than previous generations. The older you get, the longer you’re likely to live. Being prepared for a longer retirement means that your money must last longer, so don’t be too conservative with your investments.

7. Stay cool

You are in this for the long term so when markets fluctuate and investments unexpectedly fall in value, don’t panic and sell. Sit down with your adviser, review your portfolio and stay focused on your long-term goals and objectives.

8. Keep learning

You are never too old to learn. Financial advisers have an important role in giving you tailored guidance, but you still need to make your own informed decisions about your financial plan. Make sure you understand everything and if not, ask us questions or do some research.  

Please Note:

The views expressed in this post do not constituent advice in any way.

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