Constant ups and downs in the market may make an investor wary. But being wary doesn’t necessarily mean sitting on the sidelines. You simply need to know what you’re doing or talk to an expert.
Start by asking yourself two simple questions:
- What would need to happen for you to be happy with your financial progress over the next five years?
- Financially, where do you stand now?
They’re both good questions, and they’re both important. How you answer those two questions will dictate a financial outlook that’s long-term as opposed to one that is simply a short-term investment strategy.
The truth is, to protect your income over the long term, it’s essential you invest over the long term – for example in growth assets.
This graph shows the ups and downs of the Australian stock market since 1900. And it’s clearly heading in one direction – up. You could call it a ‘faith in the future graph’. Fluctuating markets are a fact of life. They’ll never go away. So the sooner you get started, the better your chances of protecting your lifestyle, or your dream, further down the track.
Q: What kind of investment strategy will help you realise your future goals?
A phrase you’ll hear in investment circles is: It’s time in the market, not trying to time the market that matters.
During the past 25 years, the Australian stock market has experienced at least 13 corrections. This is where the market has fallen by at least 10% from its previous closing high. Of particular importance, while these falls can seem very, very significant at the time, they must always be seen in perspective.
It’s necessary to stick to your strategy.
The benefits of good advice
At Sapience we help cut through the fog through focusing on real world full picture financial advice® Together with your Sapience adviser, you can be involved and actively review your financial plan so:
- You will be better protected from financial difficulty
- You’ll feel you have more certainty over life’s risks
- You’ll feel you have more control over your finances
- You’ll have greater confidence in achieving your goals
- You’ll make better informed decisions
- You’ll feel better prepared for the next step
We can help you with:
- Asset allocation strategy and advice
- Direct property investment advice
- Where to invest (quality investments)
- Ongoing information and education
- Changes to your goals or circumstances
Here are some questions that our clients usually like to ask us
- How do I improve my future financial security?
- How do I better protect my family and my business?
- How do I safeguard the future of my elderly parents or my specials needs relative?
- How do I build wealth in the future?
- Is an investment property right for my circumstances?
- Can I purchase an investment property with other family members?
- What can my adult children do to prepare for their first home?
- How can I protect my blended family from the strains of past relationships if I die unexpectedly?
- Can I improve my super with increased salary sacrifice?
Start the conversation with your partner tonight and call Sapience tomorrow.
Shane Oliver, Head of Investment Strategy & Chief Economist, AMP Capital Investors 2011
Graham Harman, Director Capital Markets Research, Russell Investments