What is the right investment strategy
for me?
You've reached the point where you have some money to invest.
It hasn't come easily so now's the time to make sure you
make the right choices to make your money grow.
Today, as an investor you're faced with a wide range of products
and terms - equities, trusts, emerging markets, listed property,
fixed interest, and on and on they go.
As well, you're bombarded with investment information - radio
and television news reports, the financial papers, stories you've
heard, well meaning friends offering advice and even details of
their own investment plans.
And like all of us, what you want out of all this, is investment
success. How do you know what is your best investment strategy?
Finding Your Best Investment Strategy
Investing in Last Year's Winners
The temptation for many people is to invest into what's doing
well today, or over the last year. Take care. This widely
used strategy is not likely to be the best way to make your
money grow.
Investing in Last Year's losers
A less common strategy is to select the worst performing sector.
This strategy is only for the very brave as it means selling
well performing investments and buying into investments with
a recent history of non (or even negative) performance. It also
may involve payment of capital gains tax and transaction fees
that can make the returns much less exciting than they initially
seem.
Diversified Investing
A better investment strategy is to have a diversified mix of
cash, fixed interest, property and share investments that matches
your own circumstances and priorities. Most likely these are
quite unique, just like you. That's why what works well for
a friend may no work for you, and one-size-fits-all investment
plans can't offer the potential effectiveness of a strategy
tailored precisely to your needs.
Your best investment strategy needs to take you into account
how you like to live now and the lifestyle you want to enjoy in
the future.
Three Key Questions
Answer these Key Investment Planning Questions to help you sort
out the best investment strategy for you.
- How much risk can you afford?
Do you have enough financial security to allow your investment
portfolio to include higher return, but less certain, elements?
- Do you need income now from your
investment, or is having your investment grow your priority?
- How long is your investment for?
Do you want to cash-in the investment in a few years or is the
investment to protect your long-term future?
Do Talk to Your Financial Adviser
Talk through the key investment planning questions you have with
your financial adviser. The answers will help identify your unique
needs and circumstances, the right investment mix and tailored
investment strategy for you.
An investment strategy planned to deliver what you need, when
you need it. That will make you a winner today and tomorrow.
The above material contains comments of a general nature only
and should not be relied upon as giving any specific or general
investment or financial advice of any nature.
Reproduced with the kind permission of ING Funds
Management Limited
© 2000 - 2006 Forsyte Consulting
Pty Ltd unless otherwise stated.
