Smart Investments in 2023 Australians Should Watch
There are many ways for Australians to invest — ASX 200 Funds, emerging market ETFs, REITs, or managed funds. There are many valid, profitable investment options to consider, no matter their financial goals.
The breadth of options is where financial planning comes in, as an expert’s thorough look or guidance can determine the right asset(s) for your goal(s). Here are some smart investments in 2022 Aussies should discuss with their qualified financial adviser today.
ETFs
ETF stands for an economic term called exchange-traded fund, which represents a group of companies put together to invest in the companies in the group. A person buying an ETF makes a small investment in each company captured in the portfolio. They are a reasonably straightforward financial planning option that covers various market sectors. Some ETFs seek to replicate an index, such as the top 200 companies on the Australian Securities Exchange (ASX). You can invest in ETFs using online share trading platforms like this.
Managed Funds
A managed fund pools a client’s money like an (ETF) but is actively overseen by a manager, an overseer who decides what stocks to buy and sell to get the best returns for them. This person will determine the fund’s portfolio based on strategies that might call for financial planning in high-risk Australian shares or low-risk government bonds.
Real Estate
Despite the trend that many Australians are generally missing out on property market investments, there are still ways to get in on the action. To get a foothold in the property market, you must save up a sizable chunk of your income as a deposit. This steady savings program, combined with historically low mortgage interest rates, gives you an advantage over other potential buyers.
Of all the advantages of investing in property, three stand out:
- You can live there rent-free.
- Potentially sell the property for a profit at a later date.
- Rent it out for an incremental profit.
Sometimes, the oldies are still goodies. The fundamental investment method of buying low and selling high remains true today, but dividends can also be paid by companies making a profit. These payouts can include an extra bit of money if you’re a shareholder in that company. Buying and holding shares are not always the most beginner-friendly financial planning strategy, but it is often customisable to fit your needs and interests.
Superannuation
While you won’t be able to access your retirement savings until you retire, you’ll have more to live off of if you invest more money into your super now. Current regulations allow you to invest up to $27,500 a year (including employer and personal contributions) into your superannuation fund.
If you want, you can also consolidate your superannuation accounts to reduce account fees and adjust your financial planning strategy on how you invest in real-time. That way, you’re maximising this fund for long-term use.
Financial Planning Starts Now
Want to live a comfortable life now and in your retirement? Start your financial planning journey today and discuss these smart investment options with a professional financial adviser. With the world slowly returning to normal, these options are slowly gaining momentum, waiting for Australians to take a chance and invest in them for a secure financial future.
If you’re one of these, inquire about financial advice on the Central Coast with Central Coast Financial Planning Group! We manage your assets accordingly for each stage of your life, ensuring you choose a smart investment strategy tailored to your personal circumstances, so you can make 2022 the year you start creating wealth. Book your initial meeting today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
