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Planning your road to riches
March 2008
If
current sharemarket fluctuations are enough to send your nerves into
a frenzy or make you swap the financial pages for tabloid magazines,
you may need to re-think your investment strategy in the year ahead.
2007
wasn't much of a stretch for investors' skills. With returns of up
to 20 per cent it was more difficult to lose than gain - however the
volatility towards the end of the year and into 2008 has made life
somewhat more interesting. The good news is there are continuing
predictions of double digit returns in 2008.
There
are a multitude of alternative investment options available to add
to your share portfolio to ensure a balanced, well performing set of
assets. You or your financial planner will need to assess the
benefits and drawbacks of each with your needs in mind.
As
with the sharemarket, ensure you're comfortable with whatever
investment option you're considering. Ongoing monitoring of your
portfolio is essential. Analyse the results of your investments
regularly and be flexible with shifting your money.
Property
From a simple residential real estate purchase to a complex
commercial property syndicate there's a reason for the old 'safe as
houses' adage. As with equities, if you ensure your investment in
bricks and mortar is for the long term it's likely you'll ride out
the cyclical nature of the property sector and see solid returns on
your original investment.
Property such as factories, shopping centres and office blocks tend
to have the advantage of stability in leasing and are often situated
in prime locations. There are a range of options for investment
including listed property trusts, property syndicates and direct
property investments, all of which provide varying returns.
Agricultural Commodities
We all know the Australian economy has been performing well due
to the mining boom, however the lesser known agricultural
commodities can also prove sturdy performers for your portfolio,
particularly as demand from China and India increases. Australian
agriculture is well placed to take up these opportunities.
With
a broad range of commodity groups including staples such as sugar,
coffee, wheat, corn, meat and dairy as well as fruits such as
mangos, avocados and wine producing grapes, there's a certain sense
to investing in food items that maintain a consistent level of
demand. After all, there's little substitute in sight for feeding
the masses.
Investment Advice
Assess new opportunities by talking to a wide range of
investment service providers and review the movements of your
valuable outlay to ensure it's moving in the right direction.
Take
into consideration your expectations and ability to manage risk and
ask for a detailed, written financial plan tailored to your
requirements. It's a good idea to receive independent advice to
ensure the tax implications of your investments are factored in.
With
regular updates on the performance of your investments, you should
be safe in the knowledge you're doing everything you can to ensure
you're worth more today than you were yesterday.
Email Peter Vickers Investment Services |
