As ethical issues such as climate change gain attention in the media, more people are considering the impact of their investment decisions. Ethical investing has been named a major trend in the financial industry in 2019.
Everyone would love to have a crystal ball to tell us what will happen in the world of investments. Knowing when to expect ups and downs in the market and being ready to act accordingly would certainly make it far easier to strike it rich quickly.
Financial experts used to think that long-term portfolio performance was due 90% to asset allocation and 10% to timing and selection, but recent studies have shown that investor behaviour can account for up to 50% of the portfolio performance.
Diversification is a strategy that spreads the risk of your investments across a range of asset classes allowing you to build a balanced investment portfolio. In other words, it’s not putting all your investment eggs in one basket. Diversification makes good sense as an investment strategy because it usually results in more consistent returns and provides protection from market fluctuations.
Shares that pay dividends are a popular option with Australian investors as they often provide a reliable source of return. This can provide a welcome cash injection or be used to reinvest for further growth. Choosing to invest in companies that pay dividends can be an excellent way to build wealth as part of a long-term investment strategy.
Becoming a smart investor is about using your head, not going with your gut feeling. But how do you know if you’re making the best decisions for your financial future? It helps to take a look at the kind of thinking that often informs our decisions when it comes to investing – so you can ask yourself, ‘Am I making the smart choice?’
Borrowing to invest is an effective tool you can use to build wealth. You’ve probably heard it referred to as ‘gearing’ – either positive or negative. Gearing offers huge potential to build your wealth faster and is a great way to plan for the future. Watch First Financial adviser, Roel Burghouwt discuss this strategy.
How do you stop from panicking when a news headline shouts of recession? Suddenly the retirement plan you’ve been working towards for years looks like it’s about to halve in value. But will the story you read today have a substantive impact on the health of your investment portfolio tomorrow? In this blog we take a look at investing in the age of the 24-hour news cycle.
Relying on your superannuation alone to accumulate enough wealth for retirement is increasingly unrealistic, especially with the changes to super contribution rules. So it’s more important than ever to consider investments outside of super.
It’s a simple question. But with a market choice of over 5,000 managed investments and around 2,200 stocks, the answer is most definitely not. Which is why working with a financial adviser is the best decision you can make.
