Have you been thinking of different ways to grow your wealth? The start of a new year is always one of the best times to assess and review your investment portfolio, yet then again, we’re in the middle of the year. Is it too late for you to seek for financial services for future trends?
If you’re panicky and overwhelmed with the latest global happenings (e.g. coronavirus crisis) that are unfolding today, take a deep breath and introspect of all the little things you can be grateful for. As the adage says: when life gives you lemons, make lemonade. Use this as an opportunity to invest and do more instead. You can seek advice on reputable companies offering financial services in Melbourne.
Almost everyone is seeking comfort, sheltering at home in a collective effort to flatten the curve. These unprecedented times, we have seen stock market values of some of the most stable companies plummet precipitously. When fear and panic sets in, like it has for so many people due to COVID-19, a few only see a window of opportunity to fast track their paths toward financial freedom. We know you’re reading this because you are part of the few.
Rise above the occasion. During these challenging times, it’s indeed extremely difficult to start investing. More and more people seek instant financial gratification as a security blanket to face life’s uncertainty.
The biggest question now is: Why invest? Now more than ever, investing can help you with a lot of things – yield additional source of income, help fund your (early) retirement, or secure your financial disposition in the future.
You may be thinking twice if now is the right time to invest. Perhaps, you’re tempted to sit back and wait until all this is over, but until when? It’s a known fact the coronavirus pandemic is far from over. That is why knowing how to deal with your investments is paramount.
When beginning to invest money, it’s good to start with the basics. You may even consult financial services in Melbourne to seek the best advice.
Every financial advisor will help you set the goals of your investments and determine where to invest money to best achieve each goal.
The financial services industry remains steadfast despite the looming slump markets. This means that even with a few seeking to invest during this time, financial services are essential as always.
For beginners, investing differ in range with varying levels of risk and potential return. When you invest money, you are either buying a portion of a company or a commodity with the belief that the value of that company or commodity will grow over time.
Investing is not a get-rich-quick scheme. So, if you want to earn fast dollars, this is not the way. Rather, it is a way to consistently grow the wealth you already have.
The good news is that even though investing is a way to grow your wealth, you don’t have to have a lot of money to get started. You can start small and the returns can be excellent, provided you choose the right investments.
Are you excited to invest and wondering where would be the best fit for you? When deciding where you should invest your money, there are various investment vehicles you can explore and invest in to diversify your investment portfolio.
Investment vehicles can either be low–risk, such as certificates of deposit (CDs), money market funds or bonds, or they can carry a greater degree of risk, such as stocks, shares, and private equities.
These options include:
It’s a good way to start investing. Just like your regular savings account, high-yield online savings accounts are accessible vehicles for your cash. For instance, a Rabobank Online Savings High–Interest Savings Account earns 2.25% in interest annually.
What’s great about these investments is that they are low-risk and very liquid. You can add or remove funds at any time.
For investors looking for cash flow, corporate bond funds can be an excellent choice. It is a good strategy to reduce your overall portfolio risk consequently earning better returns.
These types of bonds often reward investors with higher returns than government and municipal bond funds.
Property investments come with more responsibility. Unlike most investment vehicles, you need to actively manage your rental housing. In this case, you may use it as a part of your overall strategy to begin building wealth.
If you wish to pursue on rental housing, you need to carefully pick a property to buy, maintain it and deal with tenants. You can excel in growing your wealth if you make sound and smart purchases.
Given that your vacancy rate is low, it can generate ongoing passive income and can be a good long-term investment if the value increases over time. However, rental housing is the least liquid investments. You might run in some problems if you need some quick cash.
It’s great that you thought about securing your future in this uncertain time. One thing you shouldn’t forget is to go gradual and diversify.
As the market values plummet and stock market crashes, you need to be prepared for volatility. Start small and invest in different asset classes across major sectors.
It’s best to follow these investment strategies to build your wealth this year.
Your journey towards financial freedom starts by asking the right questions. If you’re seeking professional financial services in Melbourne, talk to Financial Services for Life.
Financial Services for Life is a leading financial advisory company in Melbourne. We offer financial service specialising in investment planning, lifetime financial planning, superannuation and pension, retirement planning, budgeting, tax minimisation, and more.