Investing, although riskier than cash, can create wealth over the long term with a strategic investment plan.
Implementation and Cost
- Calculate your net worth using a net worth calculator.
- Figure out your short-term, medium, and long-term financial goals (e.g., retiring with a $1000,000 investment portfolio).
- Understand the risks of investment and consider your risk tolerance.
- Consider what type of investment plan you need based on your goals
- Short term - savings accounts, government bonds, term deposits.
- Long term - Super, shares, property, index funds.
- Income earning (dividend stocks), growth shares (growth stocks).
- Create your portfolio.
- Diversify industries, currencies, and shares to reduce your risk
- Monitor your investments over time.