Written by:
Joel Simmonds
Head of Advice
We all want to be financially secure, but figuring out the best way to get there can be a bit overwhelming. If you’re ready to take control of your financial future, a solid investment plan is the key you need to unlock the door of success.
Whether you’re just starting out or looking to fine-tune your existing strategy, this step-by-step guide will help you create an investment plan that’s tailored to your needs, so you can achieve your financial goals. Read on!
Before diving into any investment plans, it’s important to get a clear picture of where you stand financially. Here’s how you can do that:
A good place to start is using a net worth calculator or budget planner, which can help you identify how much you can comfortably invest without impacting your day-to-day life.
Once you’ve got a clear idea of your financial situation, it’s time to set some goals.
Ask yourself what you want to achieve with your investment plan. Your goals might include:
Make sure your goals are specific and measurable, like aiming to save $50,000 in five years or having $800,000 in super by retirement.
Investing always involves some level of risk. It’s important to know what those risks are before you commit to an investment plan. Here’s a quick overview of some common risks:
As a general rule, higher-risk investments offer higher potential returns, while lower-risk options tend to provide more stable, but smaller, returns.
It’s all about finding a balance that works for you, while making informed decisions and avoiding unnecessary risk.
Now that you’ve set your goals and understood the risks, it’s time to explore different investment plans. Here are a few options to consider:
Each type of investment has different potential returns and risks, so choose the one that fits your investment priorities, personalised plan and risk tolerance.
Once you’ve chosen your investments, it’s time to put together your portfolio.
Depending on your goals and time frame, you might want to balance higher-risk options like shares with safer investments like bonds or savings accounts. For example:
Remember, if you can’t afford to lose a sum of money, then you probably can’t afford to invest it.
Always do your research and make sure you have all of the information, so you can make informed decisions with careful consideration.
If you need help, reach out to us and our team of expert investment advisors will be happy to help you make these difficult decisions.
An investment plan isn’t something you set and forget.
It’s important to regularly check that your investments are performing as expected. If circumstances change — whether due to market conditions or personal factors — you may need to adjust your portfolio. Keeping an eye on market trends, the economy, and other influences that can potentially impact your investments is key.
Managing investments can sometimes be hands-off, while other times it requires significant involvement. Given the knowledge, time, and ongoing attention needed, many people opt for an investment advisor, which offers peace of mind and a better chance of a successful outcome.
Creating your own investment plan can feel like a big task, especially if you’re new to investing or uncertain about the right approach.
While many aspects of investing can be learned, sometimes it’s worth seeking out professional advice to ensure you’re on the right track. An experienced financial advisor can help you:
If you’re unsure about any part of your investment journey, or if you simply want expert guidance to help optimise your strategy, professional advice can make all the difference.
Click here to learn more about our Investment Advice services.
Creating a simple investment plan is a great way to take control of your finances and set yourself up for future success.
Whether you’re building wealth for retirement or aiming to achieve specific financial goals, the key is to plan ahead, understand the risks, and adjust as needed.
Want to take the next step? Contact us today to discuss how we can help you develop a personalised investment plan that works for you and your goals.
Erin provides insights into our investment advice services, explaining how we help you build a tailored investment strategy.
Discover how we align your investments with your financial goals, ensuring a balanced approach that enables growth while carefully managing risk.
Here’s some of the most commonly asked questions about investment planning we find.
If your questions isn’t answered below, then please feel free to get in touch. We’re always happy to help.
An investment plan is a strategy designed to help you achieve your financial goals through investments. It involves assessing your current financial situation, understanding your risk tolerance, and selecting the right mix of assets to build your portfolio. Think of it like a road map to achieving your financial goals.
A systematic investment plan allows you to invest a fixed amount at regular intervals, such as monthly or quarterly. This helps spread out your investment over time, reducing the impact of market fluctuations.
Diversification helps manage risk by spreading your investments across different asset classes (such as shares, property, and bonds). This means that if one asset class underperforms, others may still deliver returns, helping to protect your overall portfolio.
It’s a good idea to review and update your investment plan regularly, especially when major life events occur (like a new job or retirement). Changes in the market or your personal financial situation can also prompt an update.
If you’re unsure about your investment choices or want to ensure you’re on the right track, seeking professional advice can be a smart move. Financial advisors can tailor a plan to your specific goals, risk tolerance, and time frame.
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This is a publication of Direct Wealth Pty Ltd, a wholly owned subsidiary of Direct Wealth Group Pty Ltd.
General Advice Warning – The information contained in this article is of a general nature and does not take into account your particular objectives, financial situation or needs. You should therefore consider the appropriateness of the advice for your situation before acting on it. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decisions regarding any products or strategies mentioned in this publication.
Disclaimer – While all care has been taken in the preparation of this blog, to the maximum extent permitted by law, no warranty is given in respect of the information provided and accordingly, neither Direct Wealth nor its related bodies corporate, employees or agents shall be liable for any loss suffered arising from reliance on this information.
