Strategy Tailored For You
Investments
Whether you are investing inside or outside superannuation getting the balance between risk and return is essential if you want to create an investment that achieves your goals with limited surprises.
Minimise risk
The risk of your investments losing value can be minimised by employing a diversified approach to a portfolio of quality investment funds, both inside and outside of superannuation.
What is diversified? Is that what I have?
Diversified means spreading your money around asset types, such as; shares, property, fixed interest investments and cash. One step further is to diversify who you have invested your funds with. For example, you may want to employ several fund managers to manage your investments rather than just one.
Your funds may already be diversified within your superannuation fund, although this may be limited to just the asset types, depending on the fund you are invested in. Although your assets could be diversified, does this mix fit with your ability to sleep at night, or do you lie awake at night worried about the impact fluctuations may have on the value of your investments. Many of us haven’t looked at how our funds are invested for some time. Over time the concern about the performance of our investments may change, and so your mix of assets may need to change to suit.
Remove investment risk altogether
Yes, you read correctly, you can now remove the risk of your investments losing value for good! Investments are now available which protect the original value of your investment. So despite what happens to our markets (like a global financial crisis), your investment cannot fall below a protected value, provided you remain invested over an agreed term. Further to this, each year on your anniversary (the date you commenced the investment), if markets have performed well and your investment is now worth more, then your protected value increases to this new level automatically and cannot be reduced except by withdrawals you make.
So you can see that these days there are various assets we can invest in and various methods in which we invest. A financial planner can recommend the most appropriate asset mix and investment approach to suit your needs and achieve your goals.