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