Want to invest but don’t know where to start? Here are five basic steps for investing.

1. Define your goals

Taking the first step on your investment journey may feel daunting. However, setting clear goals with achievable targets can be a good place to start in the planning process. ‘I want to retire at 60 with an after-tax income of $50,000 which will last at least 25 years’ is one example of a goal.

2. Understand the investment basics

Some of the main things you need to understand include the different asset classes (for example, cash, Australian and global shares, property and fixed interest), how they perform, their relationship between risk and return, and why diversifying your investments (that is, spreading your money across different asset classes to help manage investment risk) is something you should consider.

3. Check your investments strategy options

There are quite a few investment strategies (or styles) that you can use to invest, build wealth and achieve your financial goals faster. But starting a regular investment plan by investing small amounts over time and re-investing distributions back into your investment funds are some simple examples.

4. Decide if you need help from a financial adviser

Strategising, keeping up with changes to tax and superannuation regulations, as well as watching market movements and tracking investment performance can all seem like a bit of a minefield. However, working with a professional, such as financial adviser, can help you navigate the complexities of investing as you work towards achieving your financial goals.

5. Start investing

No matter how much time you spend considering your strategies, watching the share markets or planning which funds to put your money into, until you place those investments, they can’t start working for you. While it’s often said that starting earlier on in life can be beneficial, making a start in investing and allowing yourself as much time to invest as possible can still be helpful.

 

Source: Colonial First State

Discover the benefits of a privately owned Licensee.

PAUL BRONSON

Bronson Financial Services

“At a time of industry upheaval, the support of Capstone has been a godsend. Everything they promised they delivered.If you are looking for a new licensee you cannot beat the Capstone service offering."

JASON DUDENAS

Canyon Financial Planning

“Capstone Financial Planning should be at the top of your list for a Licensee. Grant and his amazing team give a down to earth and personalised approach to supporting practices.”

HELEN STEVENSON

Strategic Retirement Solutions

“I recommend Capstone to any adviser seeking to 'go out on their own'. They are a fabulous licensee!”

BOB CHEN

Everalls Wealth Management

“With Capstone I can operate my business free from conflict. They have no in-house products, a flexible APL, and an extensive list of SMA solutions. I recommend Capstone highly.”

JEANETTE SCHRAM

Nett Assets

“I can highly recommend Capstone for planners seeking an independent licensee that’s not in your face but provide quality support services. Their service and support is second to none and has allowed us to concentrate on providing our clients with a premium level of service.”

BEN DREW

Paradigm Principle

“Having been with Capstone for a number of years, one thing that really stands out is their willingness to help and can do attitude. These are qualities we really appreciate.”

JOEL BONES

IEC Advisory

“The team at Capstone are all genuinely really good people. They are remarkable with their service culture. They really do care what you think, and they are genuine about our joint success into the longer term.”

FIND A CAPSTONE ADVISER