Investment Services.
Grow Your Wealth.
From share trading or buying a house to collecting fine art or antiques, there are many different ways that people can invest.
Investing simply means purchasing something that you believe will be worth more money in the future. The goal is usually to eventually sell the investment for a higher price than the one that you paid. Of course, that’s not always the case and sometimes the investment ends up being worth less than it was initially acquired for. As such, it’s important to know the risks of different types of investments before proceeding.
While some like the DIY approach to investment, others turn to qualified financial planners for advice on what to invest in, how to diversify and how to make sure investments match their long-term goals.
Starting to invest: What to think about
For people beginning their investment journey or moving into a different type of investment, there are a few things to consider:
Planning and research – When it comes to investments, it’s always important to do your homework. What that entails will depend on the type of asset. For example, if someone is purchasing a home, they may do research on the market conditions, the suburb’s sale history and the home’s structural features and potential defects. This information may help them to make an informed decision. However, they would also probably think about how the home purchase fits with their goals. It may be an entry point to the market or it may be the home they plan to live in forever, which could contribute to their decision about how much to pay for it.
Risk – While there are no ‘safe’ investments, some types are considered riskier than others. If an asset carries a high degree of risk, it means that the investor is more likely to lose some or even all of their investment. Often, there is a higher chance of reward in return for that risk. Before investing, it’s important to think about how much risk you are willing to accept – and how that fits with your broader circumstances. A financial planner can help you to make these decisions.
Diversification – In order to spread the risk and the reward, people often diversify. Essentially, that means they have a broader range of different investments, which reduces the likelihood of every investment losing money at once. Diversification can refer to types of assets – such as a share portfolio and a property – or it can mean a greater range of investments within an asset class – such as different shares.
Where a financial planner can help?
A qualified financial planner can help on a number of fronts. Some clients use them to set up an investment portfolio, while others prefer to do that themselves and instead use the adviser for tax planning, goal establishment and performance tracking. For some, the desire to invest in something new with a recently-received payment may act as the starting point for a financial planning relationship.
Everyone’s circumstances and goals are different, but if you’d like advice on investing, you can speak to a Chelsea Wealth representative today.
Why Chelsea Wealth?
We work with you to identify and prioritise your personal financial goals and help you maximise the chance of your success. We’re here to help you secure your financial future.
Get started with Chelsea Wealth ➝
Contact us.
Newcastle
Ph 02 4032 4400 | fax 02 4032 4401
newcastlewest@chelseawealth.com.au
Penrith
Ph 02 4721 5800 | fax 02 4721 5088
penrith@chelseawealth.com.au