Investing now: What to know

Coronavirus has changed a lot of the world we now know. One notable change our Financial Planning team has seen is that more and more people are opening the conversation about investing. More to the point, how can they take advantage of the recent falls in the market. 

We sat down with our Financial Planning team to discuss the biggest questions they have been asked around investing in the current market. Here is what they had to say. 

How do you get the most out of your savings? 

Having the savings in account is only the first step, we often seeing our clients asking ‘okay, what is next?’. Making the most of your savings is about building momentum, you worked hard for that money, now make it work for you. Building on your savings is a long-term game, you can’t expect enormous results instantly, you need to give the time to see the change grow.  

1. Diversify
   The old expression of ‘don’t put all your eggs in one basket’ is a fundamental of successful investing. Your portfolio should be diverse and well rounded. Explore not only different industries but risk levels. Make sure what you invest in across the board, has the ability to support any falls in other areas. 

1. Frequency
   Timing is clearly important in investing. There are two sides to this statement, there is the element of seeing opportunities where growth can be predicted, and you want to jump onboard prior to any jumps. Then there is the strategy of ‘dollar cost averaging’, under this method you invest a set amount on set intervals, regardless of the unit price. This works to average out market fluctuations over time.

1. Long term plays
   We get it, the high-risk, high return, short term gains can be enticing, this is why casinos do so well. But there is a reason for the expression ‘the house always wins’, these strategies can deliver mixed results and are often not as stable as a long-term plan. The share market is known for short-term fluctuations, but generally when the right investments are made, your long-term returns are positive. Play the long game and see the reward.

1. What’s the cost?
   Just like any kind of service, there is typically a cost involved. There are many reasons for this, the management's experience, knowledge and time, just for starters. Though, like all other services, there can be more expensive and less expensive providers. It is important to compare your costs and understand what out of pockets you may be up for.  

Our clients, much like most people, are often held back by basic concern. Concern of the market, concern of the what if, this is an important emotion to factor in. Investing should be smart; we shouldn’t simply throw caution to the wind. Therefore, engage with professionals to help you understand what you are trying to achieve and deliver you the most suitable roadmap that delivers on your investment appetite.  

There isn’t a cookie cutter model for investing, it should be personal and tailored. To invest well, you need to invest your time with a knowledgeable team to help you achieve your goals. 

Let us guide you there, start the conversation today. 

Sources: 

https://pivotwealth.com.au/blo... 

https://www.vanguardinvestment...