While there are many ways to grow and manage wealth, following a few basic rules will deliver a real boost to your finances.
Here are five tips to get you started:
1. Start early and save regularly
Time is one of the best friends an investor can have. It allows the power of compounding interest (and other returns) to really work its magic.
Regular contributions, of course, give that compounding effect more to work on. Over a long enough time frame the interest and dividends earned on your savings can vastly exceed your total contributions.
2. Make the most of superannuation
New limits have been imposed on both concessional (pre-tax) and non-concessional (after tax) contributions to superannuation. However, super still provides a favourable tax environment within which to grow wealth.
Most wage and salary earners will benefit by first maximising their concessional contributions and then, if income allows, making some non-concessional contributions.
3. Diversify your investments
Diversification is the single most effective way of reducing investment risk.
Whether it’s cash, shares, property, art, gold or antiques, every investment sector goes through good times and bad.
Spreading your money across the main asset classes reduces the impact that a downturn in any one sector has on your portfolio.
4. Avoid scams
A surprising number of people, including many with good financial awareness, fall victim to a wide range of scams. The losses can be catastrophic, wiping out a lifetime of savings.
Heed the old rule that if something sounds too good to be true, it probably is.
And rather than tugging at your heartstrings, any request for money from an online love interest should set your alarm bells ringing.
5. Use a financial planner
Of course, there’s more to growing and managing your wealth than these few tips can cover.
A financial planner will help you find your way through Australia’s complex system of superannuation and tax, investment and insurance.
With both breadth of knowledge and depth of experience, an LDB adviser can craft a financial plan tailored to your requirements.
As your circumstances change and the financial environment evolves, LDB will advise when any adjustments are necessary to keep your plan on course. We can even take the hassle out of managing your wealth with our state-of-the-art portfolio management systems.
Start growing your wealth today
There will never be a better time to commence growing your wealth, so let’s get started. Give us a call on (03) 9875 2900 or complete the contact form below and we’ll be in touch.
