Call us on 1300 794 893

Your Money

Investing – how to get started

My uncle has given me $40,000 and I would like to get started investing for my future. I am 30 years of age, single and live at home. The areas I want to live are too expensive and I have been advised to start investing. I don’t know anything about shares and have been advised to go for a managed fund. What do you think?

With the stock market down, it could be a good time to get in and ride the stock market up, though some more falls are possible. If you are happy to wait a few years for biggish returns then you are in the right place.

If you don’t want to touch the money until you retire, I think superannuation is the best investment as it is treated very well tax-wise. However, there are good investment funds operated by fund managers, who watch the stocks they buy from you on a 24/7 basis.

I would like to see you diversify your funds, say buying a domestic one first, then a foreign share fund and then maybe a property fund. Finally, you should hold cash or a bond bearing a decent interest rate.

With the better than eight per cent bank deposits around at the moment and this is a high rate, you could think about halving your money and putting it in the best fixed deposit rate with a big bank. Go to RateCity or Infochoice to see the rates on offer.

The other half could go into a fund. If you want to shoot the lights out and not be too conservative, you could go for an investment fund with a good track record, great reputation and with a heavy focus on top, blue chip stocks. Possibly you could split your money between a growth fund that will benefit from buying successful companies that will improve with the stock market generally.

The other half might go into a value fund where the fund manager tries to pick shares, which are badly miss-priced and have plenty of upside.

Go to a website called Morningstar and get a short-list of good performers on a long-term basis but remember their track record might not help in the future. Use your search engine and even an adviser once you select a short-list of good fund managers. Good luck.

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: Friday, January 08, 2010

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300