Wealth

Case study: a set-and-forget investment strategy

Learn why time-poor Vera and Kim built a set-and-forget,professional managed and diversified investment portfolio.

When life gets busy, you want peace of mind that your investments are working to support your family’s financial goals. This was certainly the case for time-poor couple Vera, 47, and Kim, 46. Here’s what they did to create a set-and-forget investment strategy, so they could get on with everyday life.

A balancing act

It’s fair to say life is frantic for Vera and Kim. Between holding down full-time jobs, looking after two energetic kids and, increasingly, caring for ageing parents, there’s not a lot of time to spend on themselves — let alone their finances.

The power of financial advice from a licensed adviser

Vera and Kim decided to pause for a moment and get their finances in order, once and for all. They spoke to a licensed financial adviser about the steps required to set themselves up financially, from saving for the kids’ education to diversifying their investment portfolio. It was the financial health check they needed to gain some peace of mind.

Diversification is the key

In the initial meeting with their adviser, Vera and Kim spent time talking about what matters to them in life. This helped their adviser develop a portfolio of assets that allows them to achieve their goals. The adviser recommended they consider:

Investing in the Australian Unity PRO-D Balanced fund, as this is a diversified managed fund, as this is a diversified managed fund which provides stable income and some capital growth over the long term. Given their kids are still relatively young, this fund’s time horizon is appropriate to help them save towards the kids’ education.
Putting money into a tax-effective education savings fund, which allows them to adjust their contributions as their circumstances change.
Using their wealth to contribute to effective social outcomes, as being socially and environmentally responsible is important to the couple. They decided to spread income across the Altius Sustainable Bond Fund, Healthcare Property Trust and several social infrastructure funds.

Two young woman holding hands and walking along the beach

Taking control and living life

Because their investment portfolio is diversified, Vera and Kim are comfortable with market rises and falls over the short term. This provides them with a set-and-forget approach that suits their busy lifestyle — except, of course, for once-a-year check-in with their licensed financial adviser to review their portfolio and make sure it’s still fit for purpose.

Tips for getting your finances in order

As life gets increasingly busy, it can feel like there’s not enough time in the day. Listed below are some tips for putting your investments on autopilot.

Tips for creating a set and forget investment strategy

Get personalised financial advice when it counts

An experienced and licensed financial adviser can take the stress out of wealth building and help you identify strategies and products that support your goals, whether that’s saving for your kids’ education, providing for a child with a disability, generating an income, or providing you with a comfortable retirement.

Choose investments that can help you achieve a specific goal

If you have a specific goal in mind, there may be an investment opportunity to help you get there. For example, education savings funds are a dedicated way you can put money aside to give your children the best education possible. Or if you’re interested in real estate, a property fund can allow you to enter the market without the hassle of purchasing an investment property.

Look for assets that meet your values

Socially responsible investments are becoming more and more common, and they are an excellent wealth creation opportunity if supporting the community and the planet is important to you.

Broaden your range of assets

A diversified portfolio will give you confidence that your assets can ride the ups and downs of market cycles. The old cliché of not having all your eggs in one basket still rings true, especially when it comes to your nest egg.

Perform an annual check-up

While your investments can be set up to ride the waves of the market, it’s important to review your investment strategy each year to ensure it’s still suitable. Be prepared to tweak it as your outlook and circumstances change.

Think about your estate

While your estate may fall into the very-long-term-planning bucket, making sure your loved ones are protected in the event of your death can give you peace of mind. Working with an estate planning lawyer can help structure your affairs so that your possessions and financial assets are distributed as you wish.

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Important information

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