What are Some Investment Options Outside of Super?
When it comes to investing, you have two options – inside or outside of super.
Super, being a longer-term investment designed to fund your retirement, comes with a number of advantages such as being lightly-taxed (which can mean, more money to invest in your financial future) but does have some constraints including not being able to access your super, generally, until you have reached retirement.
While super is a popular option for many, there are also a number of investment options to consider outside of super – you just need to find a mix that fits your needs.
Managed Investments
While you’ve probably heard of managed funds, there are other types of managed investments such as managed accounts and Exchange Traded Funds (ETFs). The main appeal of managed investment, is that they take the hard work out of selecting which assets to buy and sell and when to do it – a professional investment manager can do so for you. Like all other investments, however, there are risks associated with the above. In addition to the risks that apply to investing generally, for managed investments specifically, risks also include the possibility that the investment manager may not perform as expected against their respective benchmarks. Here are the types of managed investments you could consider: Managed funds – investment vehicles where the money contributed by a large number of investors is pooled and managed as one overall portfolio by a professional investment manager. Investors purchase units in the fund, which entitles them to an interest in a pool of assets with the unit holders. Exchange Traded Funds – ETFs are listed on the share market, which means they can be bought and sold like shares. They also allow you to invest in a range of asset classes or sectors.
Cash Investing
It’s no surprise that many may be tempted to stash their cash in an account – doing so gives you the ability to access your money at short notice. Your money can also usually be accessed with low, or potentially zero fees applying to withdrawals (except in some cases, for example, early access to term deposits). Keep in mind though, in the investment world, lower risk can mean lower returns, and the key downside of cash is that your money won’t generate capital growth (so unless you earn more than the rate of inflation, after tax, and reinvest those returns, inflation can lower the purchasing power of your money).
Investing in Shares
As an investment, shares have lower and fewer upfront costs, which is why they’re quite popular among investors. There are no ongoing costs and depending on the share you choose to invest in, shareholders can earn regular income through dividends as well as enjoying the potential for long-term capital growth. Having said that, it’s important to understand that share prices rise and fall and the payment of dividends and the return of capital are not guaranteed. As mentioned above if you aren’t sure which shares to add to your portfolio, remember you can choose managed funds, managed accounts or ETFs where you pick the type of portfolio that suits your investment goals.
Investing in Property
Over time, a well-located property could generate long-term growth and income returns. Another major appeal of owning property is its perceived stability relative to the share market, where values can vary as a consequence of how easy it is to buy and sell shares. A property investment, on the other hand, can give you a tangible asset that delivers a sense of investment security as well as capital growth. Keep in mind, however, that the upfront costs of property can be significant, with stamp duty, legal fees and optional costs, such as pre-purchase pest and building inspections, potentially adding roughly 5% extra onto the property’s purchase price. And while the tenant too wears some of the property costs, related to direct usage, it’s the landlord who generally pays the majority of costs such as repairs, maintenance and insurance, which is why property is generally regarded as a longer-term investment.
Whatever stage of life you are at, goals you may have or investments you are considering to support you in getting there, your Newcastle Advisors are here to support you, with the information, advice & guidance you need to make an informed decision.
Should you have any questions, please contact your Newcastle financial planning advisers (using the button below)
Our Newcastle financial planners also have offices in Sydney and help clients across the local areas including Newcastle Financial Planning(Merewether financial planning, The Junction financial planning, The Hill financial planning, Bar Beach financial planning, Newcastle West financial planning, Hamilton financial planning, Adamstown financial planning, Redhead financial planning, Whitebridge financial planning, Kotara financial planning, New Lambton financial planning, Mayfield financial planning), Maitland Financial Planning (Morpeth financial planning, Lorn financial planning, Rutherford financial planning, Aberglasslyn financial planning, Metford financial planning, Beresfied financial planning), The bay (Medowie financial planning, Fern Bay financial planning, Fullerton Cove financial planning, Anna Bay financial planning, Nelson Bay financial planning, Shoal Bay financial planning, Tea Gardens financial planning, Hawks Nest financial planning), Lake Macquarie Financial Planning (Cardiff NSW financial planning, Glendale financial planning, Speers Point financial planning, Fennell Bay financial planning, Bolton Point financial planning, Coal Point financial planning, Toronto financial planning, Valentine financial planning, Belmont financial planning, Eleebana financial planning, Warners Bay financial planning, Caves Beach financial planning), Hunter Valley Financial Planning (Muswellbrook financial planning, Scone financial planning, Pokolbin financial planning, Cessnock financial planning, Singleton financial planning, Broke financial planning, Rothbury financial planning), Central Coast Financial Planning (The Entrance financial planning, Bateau Bay financial planning, Berkeley Vale financial planning, Tuggerah financial planning, Wamberal financial planning, Terrigal financial planning, Erina financial planning, Avoca financial planning, Gosford financial planning, Woy Woy financial planning, Picketts Valley financial planning) & Sydney Financial Planning (Castle Hill Financial Planning, Rouse Hill Financial Planning, Dulwich Hill financial planning).
Looking for a Financial planner or a Financial adviser in Newcastle, Looking for a Financial planner or a Financial adviser in Merewether, Looking for a Financial planner or a Financial adviser in The Junction, Looking for a Financial planner or a Financial adviser in Maitland, Looking for a Financial planner or a Financial adviser in Nelson Bay, Looking for a Financial planner or a Financial adviser in Hunter Valley, Looking for a Financial planner or a Financial adviser in Central Coast, Looking for a Financial planner or a Financial adviser in Lake Macquarie, Looking for a Financial planner or a Financial adviser in Warners Bay, Looking for a Financial planner or a Financial adviser in Sydney, Looking for a Financial planner or a Financial adviser in Castle Hill, Looking for a Financial planner or a Financial adviser in Rouse Hill, Looking for a Financial planner or a Financial adviser in Northern Beaches, Looking for a Financial planner or a Financial adviser in Central West, Looking for a Financial planner or a Financial adviser in Grenfell, Looking for a Financial planner or a Financial adviser in Coffs Harbour, Looking for a Financial planner or a Financial adviser in Grafton, Looking for a Financial planner or a Financial adviser in Port Macquarie, Looking for a Financial planner or a Financial adviser in Dulwich Hill, Looking for a Financial planner or a Financial adviser in Bondi, Looking for a Financial planner or a Financial adviser in The Entrance, Looking for a Financial planner or a Financial adviser in Terrigal, Looking for a Financial planner or a Financial adviser in Gosford, Looking for a Financial planner or a Financial adviser in Woy Woy, Looking for a Financial planner or a Financial adviser in Singleton, Looking for a Financial planner or a Financial adviser in Coal Point.
Best financial planning in Newcastle, Best financial planning in Merewether, Best financial planning in The Junction, Best financial planning in Maitland, Best financial planning in Nelson Bay, Best financial planning in Hunter Valley, Best financial planning in Central Coast, Best financial planning in Lake Macquarie, Best financial planning in Warners Bay, Best financial planning in Sydney, Best financial planning in Castle Hill, Best financial planning in Rouse Hill, Best financial planning in Northern Beaches, Best financial planning in Central West, Best financial planning in Grenfell, Best financial planning in Coffs Harbour, Best financial planning in Grafton, Best financial planning in Port Macquarie, Best financial planning in Dulwich Hill, Best financial planning in Bondi, Best financial planning in The Entrance, Best financial planning in Terrigal, Best financial planning in Gosford, Best financial planning in Woy Woy, Best financial planning in Singleton, Best financial planning in Coal Point.
Best financial planner in Newcastle, Best financial planner in Merewether, Best financial planner in The Junction, Best financial planner in Maitland, Best financial planner in Nelson Bay, Best financial planner in Hunter Valley, Best financial planner in Central Coast, Best financial planner in Lake Macquarie, Best financial planner in Warners Bay, Best financial planner in Sydney, Best financial planner in Castle Hill, Best financial planner in Rouse Hill, Best financial planner in Northern Beaches, Best financial planner in Central West, Best financial planner in Grenfell, Best financial planner in Coffs Harbour, Best financial planner in Grafton, Best financial planner in Port Macquarie, Best financial planner in Dulwich Hill, Best financial planner in Bondi, Best financial planner in The Entrance, Best financial planner in Terrigal, Best financial planner in Gosford, Best financial planner in Woy Woy, Best financial planner in Singleton, Best financial planner in Coal Point.
Looking for a Financial planner in Newcastle, Looking for a Financial planner in Merewether, Looking for a Financial planner in The Junction, Looking for a Financial planner in Maitland, Looking for a Financial planner in Nelson Bay, Looking for a Financial planner in Hunter Valley, Looking for a Financial planner in Central Coast, Looking for a Financial planner in Lake Macquarie, Looking for a Financial planner in Warners Bay, Looking for a Financial planner in Sydney, Looking for a Financial planner in Castle Hill, Looking for a Financial planner in Rouse Hill, Looking for a Financial planner in Northern Beaches, Looking for a Financial planner in Central West, Looking for a Financial planner in Grenfell, Looking for a Financial planner in Coffs Harbour, Looking for a Financial planner in Grafton, Looking for a Financial planner in Port Macquarie, Looking for a Financial planner in Dulwich Hill, Looking for a Financial planner in Bondi, Looking for a Financial planner in The Entrance, Looking for a Financial planner in Terrigal, Looking for a Financial planner in Gosford, Looking for a Financial planner in Woy Woy, Looking for a Financial planner in Singleton, Looking for a Financial planner in Coal Point.
Looking for financial planning advisers in Newcastle, Looking for financial planning advisers in Merewether, Looking for financial planning advisers in The Junction, Looking for financial planning advisers in Maitland, Looking for financial planning advisers in Nelson Bay, Looking for financial planning advisers in Hunter Valley, Looking for financial planning advisers in Central Coast, Looking for financial planning advisers in Lake Macquarie, Looking for financial planning advisers in Warners Bay, Looking for financial planning advisers in Sydney, Looking for financial planning advisers in Castle Hill, Looking for financial planning advisers in Rouse Hill, Looking for financial planning advisers in Northern Beaches, Looking for financial planning advisers in Central West, Looking for financial planning advisers in Grenfell, Looking for financial planning advisers in Coffs Harbour, Looking for financial planning advisers in Grafton, Looking for financial planning advisers in Port Macquarie, Looking for financial planning advisers in Dulwich Hill, Looking for financial planning advisers in Bondi, Looking for financial planning advisers in The Entrance, Looking for financial planning advisers in Terrigal, Looking for financial planning advisers in Gosford, Looking for financial planning advisers in Woy Woy, Looking for financial planning advisers in Singleton, Looking for financial planning advisers in Coal Point.