Investing small sums earlier in life will make a substantial difference in future year
Ever heard that investing earlier will benefit you later in life? This isn’t a new idea or breakthrough in finance; merely a principle of investing. The more you invest earlier the greater the potential outcome.
Saving up your first $5,000 will undoubtedly be the hardest task, but once it is invested you can begin to take advantage of compounding interest. This will ensure that as you continue to invest your account balance will grow at an accelerated rate. If you haven’t had exposure to investing in the past, deciding what to do or which stocks or investments to choose can be quite daunting. This is where we can add value by working with you in this area to help achieve your goals and objectives.
Investing has never been easier than it is today with simplified investment options available across a wide range of asset classes (ie. Australian Equities, Credit Securities, International Property and Alternatives to name just a few).
- Be sure to have emergency funds available outside of your investment funds should you be required to meet any unplanned large expenses or medical costs.
- You may not have access to your account funds once invested. Typically investment funds are held over long periods of time to ensure they ride out volatility in the market. Therefore, if you require access to your funds you may need to consider other options such as a high interest savings account or other liquid investments. Alternatively, should you have an offset account facility with your current lender, you may consider placing these funds here to reduce the interest costs of your loan.
Below we explain some options you have available and how you can get started investing.
Late last year we published an article, “The ETF market is fast becoming bigger” regarding the growing space of ETF investments. This type of investment option can allow you access to a multitude of investment markets (both domestic and international) and in most cases are available for minimal balances.
If you prefer the idea of having your investments managed directly by you then share trading may be better suited. Share portfolios often aim to hold between 10-20 stocks; however with a small balance of $5,000 the fees associated with buying and selling stocks would not make it feasible. Starting with a few share companies and building your portfolio over time may be the answer in the short-term – until such time as you have accumulated sufficient capital. However, with such a high concentration of your portfolio in only a few stocks you will likely see large fluctuations in the portfolio’s total value.
These are just two of the many investment products you have available to begin investing. Contact us to discuss what other options you have available.
Unsure as to what is the best option for you?
Total Advice Partners are available now to assist you with all of your enquiries. Please feel free to contact us at any time to discuss your situation and financial needs. We are happy to provide comment on all major asset classes and assist with investment discussion.
(P) (07) 3284 7875 | (F) (07) 3284 4790