Business & Community / Entrepreneur

What are Your Investment Options in Australia?

Thinking about investing in Australia? Then you are definitely on the right path towards future financial security. Here are several ways you can start investing in Australia with long-term goals in mind:

Easy Cash Investments

Cash investments are usually the easiest to do for most people. Cash investments include savings accounts and savings tools like certificates of deposit (also known as fixed deposits). Finance advisors recommend investing around one-third of your income each month in a savings account. Even if you manage less than that, it’s better than not saving at all.

Fixed deposits offer slightly better returns than savings accounts, where returns tend to be low. A fixed deposit with compound interest that renews yearly is a great way to invest for future years. The money would grow on its own with little to no input on your part.

Pool Your Money with Other Investors in a Fund

While savings accounts are easy enough to handle, the returns are typically very low. If you want better returns on the long term, you can consider managed funds Melbourne. As the name suggest, this is an investment scheme where a professional manages your money on your behalf. You don’t have to do anything. In return, the fund manager will take a commission. If you want your money professionally invested, then the commission is quite worth it.

In this type of investment tool, the fund manager purchases assets on your behalf. These assets are usually shares that may rise and fall over time. There are different types of these schemes, such as exchange traded funds (ETFs) that specialize in certain asset classes. Your money would be well diversified in a professionally overseen fund. However, it only works if you find a reliable and trustworthy fund manager.

Annuities for Retirements

Annuities are highly popular in Australia, though this system can be a bit complicated. In simple terms, an annuity is a financial contract between you, the investor, and an insurance company. Under this contract, you pay the insurance company a certain amount of money over the years. In return, the insurance company guarantees you a minimum income once you retire.

Annuities are attached to your super. You can use regular funds to begin an annuity plan. This is a long-term investment usually done to secure income in retired years. If you want to retire comfortably, it’s highly recommended to invest in annuities.

Real Estate Investment Trusts

Want to profit off the lucrative Australian property market but don’t have the capital to actually invest in property? Then you can consider a real estate investment trust, or a REIT. A REIT is essentially a company that owns property assets at various locations. You can buy shares in this trust, where your money is tied to the real estate market. In other words, you can indirectly benefit from the property market through a REIT.

Last but not least, you can also invest in gold. That is to say, you can purchase gold bars and tradable coins (not commemorative coins or jeweler) for safekeeping. If the value of the dollar goes down, the price of your precious metal assets would go up.

Likewise, there are many ways to investment. The above are some of the well-known investment pathways in Australia that regular income earners can consider.

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