Generally speaking, when most people talk or think about investments what they are really thinking about is a ‘Pension’ perhaps not people’s favourite choice of word but we’ll look into that in a moment. For now, let’s focus on a ‘provision’ that hopefully makes you some money along the way and enables you and your family to live a comfortable life when you decide to retire.
Why long term?
Well, if you want a quick whim, you are probably better off going to the bookies and placing a bet on the 3pm Grand National, you stand just as much chance of losing money if the sole purpose is to ‘make a quick buck’. If you are interested in providing an income for yourself and your family after you retire then look into long term investments for Australians, a lot of care and thought needs to go into the process, the money needs to last you a while after all.
History tells us that long-term investments are the most secure if invested properly of course. Take the property market, as an example, it fluctuates regularly, but there is normally a ‘boom’ every 12-13 years. In this very general example, it is clear to see that if you bought a house on ‘boom’ day one, then you are looking at least a 12–13-year commitment, the longer the better. A controversial view, perhaps, but historical facts don’t lie, on that note you might be interested in this controversial blog about things people say or do regarding covid.
Play the long game
As long as the current dip in the market is not lower than the previous technically you are still in profit, ideally, you’d want your investment to dip now and then but always remain higher than the last peak. Hard to do, but there are some really amazing methods used to achieve long-term growth, just looking into it could get you hooked. With a long-term investment, you get the chance to either make the investment instruction yourself directly to the fund managers or you can build a relationship with an IFA (Independent Financial Adviser).
On the subject of funding, the latest government updates are well worth a read and a must know if you are in this for the long run. One of the great things about long-term investments is that you can take a more cautious approach when it comes to a ‘risk strategy’, if you are in no rush then the ball is in your court and you tend to have more control over what is happening.
With most things in life, logic plays a massive part, if you want your investments to last a long time, then they need to be worked on over the long term, work with a company that you trust who will be paid based upon results or even on a retainer so that you have an extra peace of mind that your funds are being regularly reviewed. Waiting for a 12 monthly statement just won’t cut it, what happens within those 12 months? Anything potentially so takes it seriously and work with a team or a person who is in this for the long term, vested interest is always a bonus.