The typical life of an average Australian is now living longer in retirement, has a longer lifespan with a longer education but a shorter work life. With your retirement spanning across 15 – 25 years, it makes sense to invest early, so that you can achieve financial freedom in those later years.
Contrary to belief, you don’t have to be wealthy to invest, but you ‘need to invest to be wealthy.’ Let’s have a look at several common and affordable investments in Australia:
Interest bearing investments
These are typically considered the ‘safe’ investments, such as term deposits with your bank or financial institution. They are just slightly better than keeping your money under a mattress, however, it is not the best type of investment for the long term. These are more suited for holding emergency funds or money that you plan to spend within the next few years.
Managed funds are also popular for those who are starting out, but want to rely on the skills of investment managers to help make investment decisions. They are suited to those who want to diversify and access a range of markets with a small amount to start with, and make regular contributions. However, while managed funds may have better returns than a term deposit, they tend to attract much higher fees and you’re limited to having no involvement over the investment decisions.
Shares can be a sound long term investment that pays dividends, but it also comes with more risk. It is not uncommon to hear share prices for a company dropping dramatically during market crashes. Also, if there are issues with the company, or if it becomes insolvent, the share-holders are often the last in line to get paid, so you may not even be able to get your investment back.
Nowadays, an increasingly popular option is property investment. It is considered one of the best and safest ways to invest, as analysis of property price growth over many years has revealed that historically, property prices generally rise between 2 – 4 % above the prevailing inflation rate. While no one can predict future values, investing in quality properties in selective locations is the key to success. With thorough and careful research, property investment is clearly a smart investment choice in terms of income stability, capital growth, and good returns with minimal risk.
When it comes to researching for properties, the process can be rather overwhelming. And similar to other investment options, it can carry its own risk if not done properly, which can potentially cost you money. This is why it’s important to enlist the help of a professional Property Strategist.
Invest Hibbards offer investment options of affordable quality housing strategically located in non-metropolitan cities, delivering the benefits of a well planned and executed investment strategy. Our easy process saves you time, energy, and money. In our 14-Day Insights Program we cover:
- snapshot assessment
- 2 x coaching calls
- personal needs analysis (including tax affordability assessment, property identification and rent appraisal)
- prepare and assist finance test drive PLUS
- quantity surveyors report
- tax variation
This allows you to be involved in your investments, take the step in achieving your financial goals, and provide you with a rewarding outcome. Find out more today: https://www.investhibbards.com.au/14-day-insights-program/
Or call us on: 1300 958 410