If you are new to investing, there are plenty of strategies you can take advantage of to grow your wealth and protect it.
Being a “successful investor” has nothing to do with luck. A successful investor considers what they are trying to achieve, they develop (realistic) goals, and then create a plan to help them achieve those goals. The investments they choose align with these goals.
Here's 3 tips for new investors:
Set some goals to achieve
The first place to start is your goals. What are you trying to achieve? And by when? Do you have short term goals, like a holiday, as well as long term goals of retirement?
Once you have your goals, it’s easier to develop an investment plan. Determine your goals, why you want them, and set a timeframe to achieve those goals. This makes it more manageable so you track your progress against your plan.
You need to understand risk and return
Even though your investment goals are very important, you need to consider how much risk you are willing to accept when creating your investment plan. What you need to ask yourself is how do you feel about risking your money? One way to determine this is to ask yourself “if you were to wake up tomorrow and your investment had dropped 20%, how would this impact you?”
One effective way to manage risk is to not put all of your “eggs in one basket” so to speak. This means spreading your money/investments across various asset classes and even within asset classes. This could be things like cash, fixed interest, property and shares.
Having your investments diversified means you will be less exposed to concentration risk. For instance, if one business or sector you've invested in doesn’t produce a good return, you won't lose all your money.
Understand the investment before you invest
Before you take the plunge into any investment, make sure you’ve carefully assessed its suitability.
Read the product disclosure statement (PDS) for each investment product and make sure you understand the product's key features, fees, commissions, benefits and risks. Always seek help from a financial adviser if you’re unsure.
Explore these Altus services which are best aligned with your goal
Our investment specialists can create an investment solution that delivers you the financial outcome you’re looking for, whilst ensuring your tolerance for risk is appropriately managed. Investments can be short, medium or long term and we work with you to ensure the time horizon of your investments is aligned with your liquidity requirements and financial goals.
Financial planning is the first step to building wealth and giving you the financial freedom you desire. Your personalised plan takes into account your current situation, where you want to be in the future, and how best to get there by managing the flow of your finances to achieve the future you’ve always pictured.
There are many elements that are taken into account to achieve your financial plan: your attitude towards risk, your time horizon, investment choice, cashflow and borrowing capacity.
Retirement should be one of the most rewarding parts of life’s journey – a time when we finally get to enjoy our achievements and spend more time with the people we love. And the plan for a better tomorrow starts today.
The truth is the sooner you start to plan for retirement, the better your options are. Our expertise in retirement and superannuation planning, includes specialist knowledge of wealth management and self-managed super funds (SMSFs), and automated online tools like Altus Exchange, all in one place. By planning your retirement early, we can help you towards the retirement lifestyle you deserve.
We can assist in structuring your funding requirements so that they are consistent with your financial plan and optimised for your taxation situation. This can include strategies such as debt recycling to keep you on track over time and keep your borrowings efficient. We factor in affordability and cash flow, and also advise on the best financial structure for your financial situation.
When designing your financial plan its always necessary to ensure that your cash flow is appropriate for your ongoing requirements. It's all part of the mix. Investment, debt, investment returns, your free cash flow and taxation situation need to work in harmony to produce your optimal result.
In addition to our Model Portfolio Series, we also offer Model Portfolio Plus – ‘an overlaying’ strategy that can be effective in maximising your return given your level of risk.
How it Works
In a “Core and Satellite” approach, recommended investments make up two intertwined and complimentary strategies:
1. The core strategy is the Altus Model Portfolio, which is rebalanced quarterly. The Altus Model Portfolio provides exposure to asset classes that are broadly representative of the market.
2. Satellite strategies then added in addition to the core strategy, providing the potential to deliver higher returns at your risk tolerance.
Who does this suit?
This strategy is not for everyone. It may be better suited to more experienced investors who wish to segment their portfolios, and/or have a higher tolerance to risk, and/or a have a
higher net worth.
The way we work is to start with a blank canvas, and help you realise your masterpiece. We will create a strategy that’s right for your situation, so you can achieve the financial goals you’ve pictured.
Once you have your financial plan, your adviser will periodically “check in” with you and review your progress towards your goals. This is particularly important as it keeps your financial plan on track, updated and tailored to you.
Major changes or lifestyle change?
Whether it’s a change in your personal life, such as having a child, economic environment changes, or you have changed Lifestage, we are always evaluating our advice, to ensure it suits your new situation.
Your Ongoing Service Program is designed to be relevant to the goals you are trying to achieve, the stage of life you are at and the complexity of your personal situation. This means if there are any major changes in your lifestyle this will impact your current advice and plan, and therefore, your level of ongoing service, sometimes a new plan is needed.
Back on track
When we review your progress, we will help you make informed decisions about whether any changes to your plan are required.