General Information about Financial Advice

Investment Tips

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We all need to have financial goals. You may want to provide the best education opportunities for your children or you may want to build an investment portfolio so you can live comfortably in retirement. Whatever these may be, saving to meet those goals is important but regular investing is critical.

 

Saving versus investing

Regular saving is a familiar concept; however, saving in your bank account will only give you a few percent per annum in return. Investing can deliver much more.

 

Saving and investing – make your money work harder

 

Clarify your investment goals and set a plan to ensure you save while investing wisely to make sure you can reach them.

 

One of the easiest ways to keep your saving plan on track is to ‘pay yourself first’. Set aside a part of your pay packet for yourself, before you pay anyone or anything else such as bills, groceries, shopping, car, phone, rent or mortgage. By setting aside an amount straight from your bank account when your pay goes in, you can make sure that you get paid regularly and on time. But how much can you afford to pay yourself? Start by making a budget. List all your expenses and then work out how much you can afford to save each month.

 

Invest your savings to grow

The next step is to make the most of your savings by investing them. The type of assets you invest in will depend on your financial needs and objectives.

 

Managed funds are one way to put your plans into action as they pool your savings with many other investors. You can then access a wide range of quality investments which are managed on your behalf.

 

Diversification can also be important. It means spreading your risk across each of the main investment types (shares, property, fixed interest and cash) with an aim to achieve more consistent returns.

 

Power of Compound Interest

Once you’ve set your investment goals and decided where to invest your money, another reason for regularly investing into a managed fund is access to compound returns. Each dollar you invest earns a return. If you reinvest that return, it can earn more dollars, allowing your investment the potential to grow much faster.

 

Turn your savings into earnings

Turning your savings into an investment which can help you to reach your goals does not have to be difficult. With just $1,000 to start, you can make regular investments of $100 or more each month, switched directly from your Australian bank account to a managed fund.

 

Things to start thinking about …

  1. Is your savings account providing you with a competitive interest rate?
  2. Keep your credit card receipts and check them against your monthly statement. How much are you spending?
  3. Put together a savings plan (your personal budget planner).
  4. How much of your income do you save?
  5. Should you get the help of a financial adviser?

Source | Colonial First State

Adventure Before Dementia

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Ok, you are now retired – Yay!  Now what?  Have you planned what you are going to do?  You now have all this time on your hands to do what you have always wanted to do.  Are you going to sit at home and waste this opportunity?

 So, where will you go?  What will be your big adventure?  What have you always dreamed of doing?  What is on your bucket list?  Is there a hobby you’ve always wanted to get back to doing?

 Now that you are thinking of all the possibilities and have an idea of what you want to do, the next question is……How are you going to fund all those dreams?  You need to ensure that your working life is growing your investments. 

 This is where Fil and Marcia at AFD Financial Solutions can help you to take advantage of all the opportunities available and that your investment is working harder, to enable you to have that adventure before dementia.

Adelaide Financial Advice - Seven Deadly Sins

Seven Deadly Financial Sins for Women (and some men!)

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Seven Deadly SinsSeven Deadly Financial Sins for Women (and some men!)

Unless we’re rubbing shoulders with A-listers or running a multi-million dollar fashion business, we need to invest time and effort if we want a successful financial future.

It seems that today’s woman can be easily distracted by the comforts that short term material wealth can provide and these ineffective money management habits are best described as Seven Deadly Financial Sins.

 

Sin: Sloth

People who stick their head in the sand and are happy to take the lazy approach when it comes to their financial situation may suffer from the financial deadly sin – Sloth.

Rescue yourself by…
Taking charge of your financial affairs, starting with your superannuation and find lost super by logging onto the ATO’s Super Seeker website at http://www.ato.gov.au/super.

Sin: Anger

Finding excuses or others to blame for your financial situation doesn’t make it go away.

Rescue yourself by …
Take a reality check by doing a budget based on your income and expenses. You may be surprised. Visit the budget planner tool on the ATO website. If it helps curb your needless spending ways, then you shouldn’t be angry any longer.

Sin: Greed

People of today live in a ‘now’ society and the risk of this behaviour is that it may trap you into spending more than you earn.

Rescue yourself by…
Building your wealth through sound financial strategies that suit your financial and lifestyle needs. This can give you peace of mind to have all that you want – with a little discipline.

 

Sin: Damsel in distress

Ladies (or fellas) in-waiting on the lookout for a knight in shining armour to rescue them from the burdens of their financial situation is otherwise known as Cinderella syndrome.

Rescue yourself by…
Saving regularly – just $20 per week can add up to over $7000 in five years in an online high interest bearing account.

Sin: Gluttony

Ladies with an appetite for debt and credit cards to feed their addiction may suffer from the financial deadly sin of Gluttony. Online shopping and VIP nights at your favourite department stores feed on gluttonous appetites and before you know it, you’re in way over your head.

Rescue yourself by …
Spring cleaning your debt – start with cutting up store cards and start to seriously consider protecting your wealth.
Income protection insurance will provide you an income when you’re sick or injured and unable to return to work.

Sin: Lust

It can be hard to resist a good deal and retailers enhance their businesses to appear irresistible with ambient music and designer scents – all to put shoppers in the mood for spending money.

Rescue yourself by…
Take control of your financial future and put a portion of your regular income into savings and investments so it’s not all lost through the temptation of impulse shopping.

Sin: Envy

Don’t hold a vendetta, do something about your financial situation if you’re not happy with it.

Rescue yourself by …
Consider an investment plan that works for your short, medium and long term goals.

Be your own fairy Godmother

It’s never too late to rescue yourself and take control of your financial destiny. Your financial planner (hint! hint! ) can provide straightforward and transparent financial advice by helping you with your current situation and implementing a plan to meet your needs in every stage of your life. 

Source | MLC