Skip to main content

Asset Allocation And Now to Get Your Money Working Harder For You - Australian Investment Education

With so many options available to the everyday Australian, the notion of asset allocation can be a daunting one. Is it in crypto? Property? Cash at the bank? Needless to say, your money can always be working harder when you allocate your assets correctly.

A few simple questions

Asset allocation can be tough – especially with so many easily accessible places to put your money at the touch of a button. The truth is before you make any decisions you have to ask yourself a few simple questions to get the ball rolling. Firstly, what’s my risk? Any pro knows that weighing up your risk before anything else is paramount. Secondly, what kind of return can I expect?

Chasing returns in assets classes you don’t understand is a recipe for disaster. Of course, this will depend on how much capital you have available and how much time you actually have – sometimes our most scarce commodity. if you want to learn about how to buy back 3-5 hours a week, make sure to check out Winning the Game, a journal for planning your assets. Knowing who you are and what your appetite is like is the first step in any asset allocation plan.

Having a horizon mindset

Let’s get this straight – you can’t have everything you want right now. Most asset classes take time, commitment and a clear action plan to be able to afford. Thus, having a horizon mindset that looks into the years and months ahead is critical. The game of money is one that should played to a plan that allows you to grow your asset allocation pool over time.

Cyrpto – watch out, you may get burnt

If you are yet to hear about crypto and what it is then you need to stop living under a rock. Yes, this asset has some usefulness to it like block chain technology in companies like Kodak for example. However, the fact of the matter is when allocating your assets you simply don’t want to be playing at the casino. Cyrpto is a lot like roulette, you’re only guessing which colour the dice is going to land on, therefore it is best to watch out.

Cash – a lazy place to park your money

The old adage that “cash is king” has never been more false. The truth is, interest rates sit at just 0.75%. So having it as an asset allocation class in today’s world is not a valid option. After tax and inflation, you’re actually losing money. That’s right, unnervingly cash at the bank is simply not safe – it’s not working hard enough. Just like the bond market, the yields on cash are really quite thin even in something like a term-deposit.

Property is an expensive game

The reality is that the property market is overvalued right now. Allocating a chunk of your cash for something that requires upwards of a 20% deposit can seem extremely daunting given property prices are at an all-time high – an expensive seat at the table.

The stock market – income, paid up-front

Like property, there are many facets that make up the inner-workings of stock market
money. Looking to generate regular, immediate and up-front income that is guaranteed is something Australian Investment Education has specialised in for many years. By using a time-tested strategy called Cash flow on demand, their strategy mitigates risk and allocates cash in the right stocks to earn an approximate 2-3% every 4-6 weeks.

Work smart so your money can work hard

The fact is, there is a multitude of places to park your money to earn a return. What kind of return, and at what risk level are the key questions to ask yourself when looking to correctly allocate your assets. Whether it’s in crypto, in cash at the bank, or in the stock market, it is pivotal to have both the correct mindset and strategy to accompany you.

Specifically, if you would like to know more about how Australian Investment Education has helped thousands of people earn an immediate, up-front income in the stock market, check out their website to start winning in the market place.

 

Comments

Popular posts from this blog

Ensuring Your Legacy: The Importance of Estate Planning and Wealth Preservation

Introduction Estate planning and wealth preservation are vital components of financial management that extend far beyond the realm of the affluent. Regardless of one’s economic status, creating a comprehensive plan ensures the orderly distribution of assets and minimizes potential disputes among heirs. This article delves into the significance of estate planning and wealth preservation, exploring key strategies to safeguard and transfer wealth effectively. Understanding Estate Planning Estate planning is the process of organizing and managing one’s assets during their lifetime and determining their distribution after death. It involves a thorough examination of financial holdings, including real estate, investments, business interests, and personal belongings. The primary goals of estate planning are to minimize taxes, ensure a smooth transfer of assets, and provide for loved ones in accordance with the individual’s wishes. One essential component of estate ...

Why Investment News Will Help You Make More Confident Decisions - Australian Investment Education

  Many “would be” investors think the best way to make profitable trades is to get a trading platform, look at the charts and just give it a go. If only it were that easy… Over a thirty year professional trading career and having helped “rehab” thousands of investors, I have learned that there is a lot more to it than that! And that’s where Investment News comes in.

Navigating the Top 5 Market Trends in 2024 - Andrew Baxter

  1. Artificial Intelligence and Tech Stocks Artificial intelligence (AI) continues to dominate discussions in the financial markets . Tech stocks, particularly those involved in AI, have shown remarkable performance. The NASDAQ, driven by companies like Nvidia, has seen impressive gains, echoing the strong performance of 2023. However, this sector’s success also brings volatility. Overvaluation and shifting market sentiment could lead to sudden downturns. It’s crucial to monitor these stocks carefully and consider diversifying your portfolio to avoid overexposure to this volatile sector. 2. ESG Investing Environmental, Social, and Governance (ESG) investing has been a hot topic throughout 2024. However, the enthusiasm for ESG seems to be waning in the face of economic pressures. Countries like the UK have reconsidered their carbon-neutral goals due to economic constraints, and companies like Fortescue Metals have scaled back their green energy projects. While ESG remains important...