Skilled Migrant Professionals February 2015 | Page 38
Finance
Investing
Boyd Bruining,
Financial Adviser,
Anne Street Partners
Property
investment
Tinashe Rusinga,
Property Investment
Specialist,
Anne Street Partners
Retirement
savings
Michael Michalczyk,
Financial Adviser,
Anne Street Partners
Successful investing has very little to do with good luck, so
how do you know what’s best for your circumstances?
Having a holistic approach to your investment strategy
provides a tailored and diverse structure capable of delivering
the best results for your long-term financial goals.
Firstly, it’s crucial to determine what the most suitable
investment mix is to suit your risk tolerance and long-term
financial goals. These may include managed funds, shares and
direct property investments. Having a diversified investment
strategy provides you with more flexibility and protection, also
you don’t have all of your nest egg is in one basket. Seeking
advice on how best to structure and combine these is a must.
All that you have worked for, and all that you hope your future
will be, is too important to take a ‘piece-meal’ approach.
Taking a disciplined long-term approach to an investment
strategy is highly recommended. It is important to remember
the cyclical nature of all investment markets in connection
with your investment timeframe. Additionally, there are many
other facets to consider including taxation, fees and income
distribution preferences. Getting these factors right will ensure
the investment fits your requirements and is appropriate for
your circumstances.
Property is a popular option as part of a balanced investment
strategy. However, when investing in property it’s important
to be clear on your objectives. Do you want to achieve
short-term high rental returns or long-term capital growth?
Investing in property has many benefits, including the
potential to generate rental income and yield, capital
growth, potential tax advantages associated with negative
gearing, and it’s a tangible asset which you can use as
leverage.
Although the past 10 years may have been a good time to
have invested in the equity market, the property market still
delivered better results and steadier returns.* Additionally,
the risk to be noted with shares is that some types of
shares investment loans have ‘margin calls’ (further cash or
securities required to cover possible losses).
Property may also provide an investor with more security
and control, and may provide added value through
renovation or redevelopment. You may even be able to use
your superannuation in some circumstances.
Interest rates are currently very low and competitive, so
research the best loan that suits your requirements. You
may prefer the certainty of a fixed rate loan, or flexibility of
a variable rate loan with an offset account.
Ascertaining the amount of income you require to fund a
comfortable retirement is the first important step. Without
specific, measurable retirement goals you will have nothing
to work towards, and no way of knowing if you are on
track or not.
Designing your retirement plan with an appropriate
investment mix gives you the best odds for retirement
success. These could include property, managed funds or
equities and fixed interest investments.
It’s important to consider that you may require part of your
superannuation funds prior to retiring. How would you
support yourself if you were only 55 and could no longer
work? So although having a healthy superannuation fund or
SMSF is important, it shouldn’t be your only form of savings.
However, ensuring you have the right superannuation fund
to suit your requirements is definitely crucial.
With long retirement periods ahead and investment
markets as treacherous as ever, the key challenge for
investors facing retirement is to earn enough to live
comfortably, without taking risks that could prematurely
wipe out your ‘nest egg’. The challenge is to balance the
risk of your money lasting as long as you do with the risk
associated with investment market movements so you can
maximise your returns.
* Source: ASX & Russell Investments
Contact an Anne Street Partners specialist today to develop a tailored strategy that could assist you in reaching your financial goals sooner.
We’re here to help!
Phone: 135 444 or Email: [email protected]
www.annestreetpartners.com.au
The information in this article is general in nature and does not constitute advice. The information has been prepared without taking into account
your personal objectives, financial situation, need or circumstances. Before acting on any infor