Are you a new investor looking to dip your toe for the first time? It certainly makes good sense to take control of your financial future and build yourself a diversified portfolio over the long term. However, it can be a little confusing when you’re trying to decide how exactly to break into investing. Here are a few simple tips to get you on your way.
What money will you use?
If you already have funds earmarked for investment, then you’re ready to start on your investment journey straight away. If you don’t have money available, then you need to start saving money specifically for investing. A good place to start is by creating a budget. A sum of $400-500 a month can easily turn into $5,000 – $6,000 or more a year. That total begins to build into something significant for investment purposes.
Shares or property?
Investing in property or shares are two of the most common ways to build wealth outside of superannuation and which is best is often subject to debate. But it’s not a debate that advocates of either investment will ever win because it really comes down to which is most suitable for your personal situation. To help you decide which is best for you, check out the benefits and risks of each here. Keep in mind you may not want to put all your eggs in one basket and to take a long term view.
What about investing within super?
Superannuation offers some excellent opportunities for the new investor. A relatively small amount of extra money paid in over a long period can have a significant impact. But it’s important not to do that at the expense of pushing down on your main home loan or developing a portfolio of investments. Getting yourself an account with the best super fund for you is also a hugely significant consideration. Consider the options for leveraging purchase potential from within your super fund. The same assets are available within and outside super, so think about property and share acquisition within super using pre-tax options.
Get the right advice
If your time or expertise is limited, a sound investment would be to speak to a financial advisor who can tailor specific strategies circumstances now and into the future.