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Save and InvestSaving is a key principle. People who make a habit of saving regularly, even saving small amounts, are we...
07/11/2018

Save and Invest

Saving is a key principle. People who make a habit of saving regularly, even saving small amounts, are well on their way to success. It’s important to open a bank or credit union account so it will be simple and easy for you to save regularly. Then, use your savings to plan for life events and to be ready for unplanned or emergency needs.

Actions You Can Take
Start saving, form a savings habit, and pay yourself first!
Open and keep an account at a bank or credit union that meets your needs.
Track your savings and investments, and monitor what you own
Plan for short-term and long-term goals
Build up emergency savings for unexpected events
Consult with a qualified professional on investments and other key financial matters
Save for retirement, children’s education and other major items

Hints and Tips
An easy way to save is to pay yourself first. That means each pay period, before you are tempted to spend money, commit to putting some in a savings account. See if you can arrange with your bank to automatically transfer a certain amount from your paycheck or your checking account to savings every month.
People who keep track of their savings often end up saving more, because they have it on their minds. New phone apps are available to help people pass up purchases they don’t really need – you might want to try one!
If you are making investments, it’s good to consult with a qualified professional about your plans. Before you purchase investments, be sure to build an emergency savings fund to cover your needs for at least three months. Keep the savings in an insured bank or credit union account that you can access if you need it.
Many professionals call themselves “financial planners.” Before you hire one, ask for a description of the services offered. A good place to check the credentials of an investment advisor is your State’s consumer protection office, the State’s Attorney General’s office, or the issuing agency for any professional licenses or certifications.

How To Invest: The Smart Way To Make Your Money Grow If you want a shot at becoming wealthy, you need to do more than si...
07/11/2018

How To Invest: The Smart Way To Make Your Money Grow

If you want a shot at becoming wealthy, you need to do more than simply earn money. Most importantly, you need to hold onto the money you earn. And then, you need to grow your money. In order to grow your money, you need to learn how to invest.

When you become an investor, you’ll be using your money to acquire things that offer the potential for profitable returns through one or more of the following:

Interest and dividends from savings or dividend-paying stocks and bonds
Cash flow from businesses or real estate
Appreciation of value from a stock portfolio, real estate, or other assets

As you learn to become an investor, you will begin to devote your limited resources to the things with the largest potential for returns. That may be paying down debt, going back to school, or fixing up a two-family house.

Of course, it may also mean buying stocks and bonds, or at least mutual funds or exchange-traded funds.

Thanks to advances in technology, you can start to invest with as little as $5 a month and a smartphone. It’s our job to help you filter out the noise, learn the basics, and make good investment decisions from the start.

Learn about the different types of investmentsThere are three main types of investments:StocksBondsCash equivalentYou ca...
07/11/2018

Learn about the different types of investments

There are three main types of investments:

Stocks
Bonds
Cash equivalent
You can invest in any or all three investment types directly or indirectly by buying mutual funds. Another option is to invest in tax-deferred options, such as an IRA or annuity.

Stocks
Companies sell shares of stock to raise money for start-up or growth. When you invest in stocks, you’re buying a share of ownership in a corporation. You’re a shareholder.

There are two types of stock:

Common stock. Shareholders have a percentage of ownership, have the right to vote on issues affecting the company and may receive dividends.
Preferred stock. Shareholders are generally entitled to dividends at specified intervals and in predetermined amounts, but they don’t typically have voting rights.
Investment returns and risks for both types of stocks vary, depending on factors such as the economy, political scene, the company's performance and other stock market factors.

Bonds
When you buy a bond, you’re lending money to a company or governmental entity, such as a city, state or nation.

Bonds are issued for a set period of time during which interest payments are made to the bondholder. The amount of these payments depends on the interest rate established by the issuer of the bond when the bond is issued. This is called a coupon rate, which can be fixed or variable. At the end of the set period of time (maturity date), the bond issuer is required to repay the par, or face value, of the bond (the original loan amount).

Bonds are considered a more stable investment compared to stocks because they usually provide a steady flow of income. But because they’re more stable, their long-term return probably will be less when compared to stocks. Bonds, however, can sometimes outperform a particular stock’s rate of return.

Keep in mind that bonds are subject to a number of investment risks including credit risk, repayment risk and interest rate risk.

Cash equivalent
Cash equivalent investments protect your original investment and let you have access to your money. Examples include:

Savings accounts
Money market accounts
Certificates of deposit (CDs)
These different types of investments generally deliver a more stable rate of return. But cash equivalent investments aren’t designed for long-term investment goals such as retirement. After taxes are paid, the rate of return is often so low that it doesn’t keep pace with inflation.

Why Should I Invest?There are only two ways to make money in our modern world: by working, for yourself or someone else...
07/11/2018

Why Should I Invest?

There are only two ways to make money in our modern world: by working, for yourself or someone else, and/or by having your assets work for you. If you keep your life savings in your back pocket or under a mattress, instead of investing, the money doesn't work for you and you'll never have more than what you save or receive through inheritance. Conversely, investors generate money by earning interest on what they set aside or by buying assets that increase in value.

It doesn't matter how you do it. Whether you invest in stocks, bonds, mutual funds, options, futures, precious metals, real estate, a small business or a combination of assets, the objective is the same: to make investments that generate additional cash. As the old expression goes, "Money isn't everything but happiness alone can't keep out the rain." So, whether your goal is to send your kids to college or to retire on a yacht in the Mediterranean, investing is essential in getting where you want to go in life.

Managing Investment Goals
Investment goals diverge, depending on age, income and outlook. You can further sub-divide age into three categories, young and starting out, middle aged and family building, old and self-directed. These segments often miss their marks at the appropriate age, with middle-aged folks considering investments for the first time or the elderly forced to budget, employing the discipline they lacked as young adults.

Income provides as the natural starting point for investment planning because you can’t invest what you don’t have. The first career job issues a wake-up call for many young adults, forcing decisions about IRA contributions, savings or money market accounts, and the sacrifices needed to balance growing affluence with the desire for gratification. Don't worry too much about setbacks during this period, like getting overwhelmed by student loans and car payments, or forgetting that your parents no longer pay the monthly credit card bill.

Outlook defines the playing field on which we operate during our lifetimes and the choices that impact wealth management. Family planning sits at the top of this list for many individuals, with couples figuring out how many kids they want, where they want to live, and how much money is needed to accomplish those goals. Career expectations often complicate these calculations, with the highly-educated enjoying increased earning power while those stuck in low level jobs are forced to cut back to make ends meet.

It’s never too late to become an investor. You may be well into middle age before realizing that life is moving quickly, requiring a plan to deal with old age and retirement. Fear can take control if waiting too long to set investment goals but that should go away once you set the plan into motion. Remember that all investments start with the first dollar, whatever your age, income or outlook. That said, those investing for decades have the advantage, with growing wealth allowing them to enjoy the lifestyle that others cannot afford.

Address

Canberra, ACT

Telephone

+46812400613

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