Things to consider before you invest

Everyone has different personal and financial circumstances and goals in life. And the return we want for our investments and the risks we are prepared to accept vary enormously between people. That means the types of investments suitable to our needs will also vary greatly.

So first it’s important to understand your current position, where you want to get to and then determine how to get there. Here are some basic questions to get you started.

What are your goals for the short, medium and long term?

  • Short term – 1 top 3 years, for example saving a deposit for an investment property 
  • Medium term – 3 to 7 years, such as saving for your children’s education 
  • Long term – 7 years or more, including saving for retirement

What is your current situation?

Your age, your current assets and liabilities, your family circumstances and dependents, and any special needs will determine the way you invest and your reasons for investing. These factors will also play a part in how much risk you are willing to take. 

How much risk are you prepared to take?

To help you choose the right type of investment you first must understand how much risk you are prepared to accept (your risk profile) and how long you are prepared to invest to achieve your goals (time horizon). This will help you determine the type of assets you might invest in.

Can financial advice help?

If you’re unsure about where to start, getting a financial plan and some expert advice is a good way to get started.

What’s next?

Perpetual or Perpetual Group means Perpetual Limited, ABN 86 000 431 827, and its subsidiaries. Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This information has been prepared by Perpetual and contains information contributed by third parties. It contains general information and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional financial, tax and/or legal advice. The information is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. However, the statements including assumptions and conclusions are not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.