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Investment advice & planning

Great advice can be a top investment when it comes to building a portfolio of assets tailored to your needs.


When it comes to building financial security, few things are more effective than growing your assets. Whilst you will always need to manage your cash to cover your living expenses, as well as provide for options such as holidays and entertainment expenses, you may want to divert some of your money into assets like shares or an investment property. Building up these kinds of ‘growth’ assets can help you achieve your personal goals of growing your wealth so you can enjoy a better lifestyle today – and in future.

The idea of ‘investing’ might sound like something only wealthy people do – in reality most people can start building up their assets with the right advice.

The first step of the process is to start by discussing your investment planning needs and goals with your FinChoice financial adviser.


Get started with investing

Many Australians hold investments but have you ever stopped to wonder if your portfolio is really working in your favour? Professional advice takes the guesswork out of investing.

This quick video gives you some insights into getting started with investing.

The financial planning advice process

1
Discovery

We'll meet with you to really understand your current financial position, as well as help you identify your financial and lifestyle goals. Together we'll determine the areas where you may need our help... and your first meeting is on us!

2
Research

If you choose to go ahead with the advice, we'll do all the necessary research and develop your personalised financial plan.

3
Approval to proceed

We'll meet with you to present your plan and discuss our recommendations. You will get a Statement of Advice confirming the recommendations in writing.

4
Implementation

Once you are comfortable with your plan, we'll put it into action.

5
Review and update

Ongoing advice is also available, where we will continue to adjust your strategy to meet any changes in your circumstances. We'll meet with you at least annually to keep you on track to achieving your goals. If ongoing service is appropriate for your situation, we can also discuss your annual report and any changes in your situation to help you stay on track. 

Understanding investment risk and diversification

A big part of investing involves making decisions on the level of certainty you need and are comfortable with when it comes to the returns you want on the money you have invested.

There are a range of investments available for you to invest in. It is important to remember that all investment markets move in cycles – enjoying periods of strong returns, followed by periods of low returns or even a dip in values.

The thing is, different investment markets don’t all move in the same way at the same time.

When one type of investment market is experiencing rising values, other investment markets may be going through cooler conditions.

This is where diversification can help you and where tailored investment advice can help you take advantage of the cooling period of certain markets, and also help lower your risk during stages of nearing retirement or a change of career.

Two ways to think about investment risk

1

Your attitude towards risk – what is your level of comfort when it comes to taking risks with your money? Will you be able to sleep at night if you know the value of your investments can fall as well as increase?

2

Your ability to take risk – this will be shaped by your personal and financial circumstances as well as your goals. Factors to consider when determining your risk tolerance is your age, income, family situation, the length of time you want to invest your money over and your lifestyle.

Main investment options

“Cash” includes savings accounts, cash management accounts and term deposits. All cash investments are very safe with a low risk of losing your money. The downside is that returns on cash tend to be very low, and you won’t enjoy the benefits of capital growth.

These assets provide a regular income stream, usually in the form of interest payments. They can be actively traded and have the potential for capital growth with their market value varying as interest rates change. An example of a Fixed Interest asset is a Bond and they are generally considered low to medium risk investments.
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Investors can choose to own residential property as well as commercial property (e.g. retail premises and factories). Both types of property can deliver ongoing rental income and long term capital growth. Property values can rise and fall over short term periods, so holding onto your property for the long term, at least seven years, can help to minimise this risk.

Instead of having to purchase an entire property on your own and tying up a large proportion of your money, another way to invest in property is through a property trust known as a Real Estate Investment Trust (REIT). A REIT is a simple way to invest in property as it sees many investors pooling their funds together with a professional manager to invest in a portfolio of different properties.

It’s relatively easy, and very affordable, to own a stake in some of Australia’s largest and most successful companies. It doesn’t take much cash to get started, and as a shareholder you’ll be entitled to receive dividends for certain companies - a slice of the company’s annual profit - when they are paid. Along with dividend income, you also have the potential to make a gain on any increase in the price of your shares when you sell them.

Infrastructure assets include investments in physical assets (e.g. toll roads, airports) and also services (e.g. electricity, gas and water). These assets generally have a stable cashflow as well as the potential for achieving capital growth.

Alternative assets are non-traditional investments that do not fit within one of the above types of assets. They include things such as private equity funds, hedge funds and commodities (e.g. Gold and Silver).

Investment FAQs

Diversification means divesting across a range of asset classes. It is important as it can ensure consistent returns over time and while it will not guarantee against loss, it can help minimise risk.

No, they will advise you about a range of assets that you can invest in.

Your financial adviser will look at your financial needs and goals then work out an investment strategy to help you achieve those goals and needs.

The risks associated with investing include the asset class losing value, uncertainty about the market, and potential financial loss.

Risk vs Return trade off is the principle that the higher return your investment boasts, the more risk there is. On the flipside, low levels of risk means a potentially lower return. It is important to understand the different levels of risk and the reward they may bring as it will influence the decisions you make with your investment portfolio.