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Wealth building – how to save for a house

I am 22 years of age and want to build up my wealth to buy a house by the time I am 30 years of age. I received $10,000 from an inheritance and would like to use that to build up my savings. I am a bit worried about shares following this last year.

Don’t be worried about shares generally but about bad companies specifically. You could easily invest your money in an investment fund with a good five-year and even 10-year record. Make sure they are linked to a big financial institution and that their fees are not too high compared to the average.

Vanguard has an index fund which tracks the ups and downs of the overall stock market index, which might be worth looking at.

Their fees are not high compared to other funds. Ideally, you should mix up your investments, say 30 per cent in a fixed deposit at a bank.

The rest could be put into an index fund. I can’t give you advice as I don’t know your circumstances but lots of people have used the approach I have described and done well, but there are always risks with all investments and remember to check the fees, the long-run returns and the safety of the institution behind the fund.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Monday, February 22, 2010

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