Investment Advice


If only securing your financial future was as easy as putting your money into a bank and letting it grow over time. Unfortunately this may not be nearly enough to provide a steady source of income growth and financial protection. If you really want your money to work for you there are a variety of investments options available. That’s where Lambert’s investment advice comes into play.

Even if you have some financial experience the world of investments can be a complicated to navigate. You’re not just sorting out the hundreds of available investment avenues themselves; you’re also diving into the ever-evolving intricacies of taxation and superannuation legislation.

Generally younger people choose more high risk options as they have more time to invest, whereas older people sometimes prefer lower risk options to preserve their capital as they are closer to retirement and do not have time to recover if the investment has a negative return. Your risk profile will determine your asset allocation. The asset allocation within your portfolio are the various investment assets that are selected to maximise your returns at the risk you are willing to take. There are generally five broad asset classes:

•    Cash
•    Fixed Interest
•    Property
•    Domestic Shares
•    International Shares

The first steps to a healthy investment

The best investment options are the ones that are analysed and then compared to your particular financial goals, your situation, and the level of risk you’re willing to embrace. We have a track record of growing and protecting the wealth of our clients that we are very proud of, however there is no such thing as an investment that is 100% risk-free.

Determine your goals

Determining your goals will help you see at a glance if your investments are doing what you want, and if they’re not, you’ll be able to see where they need to be tweaked or changed completely.

How much are you willing to risk

No investment advice would be complete without considering the inherent risks. Solid investment advice can help you recognise a lot of the potential pitfalls of high risk investments and how to avoid them. A well-tailored diversification plan will make sure that even if one section of your portfolio were to take a hit you’d still be seeing healthy returns elsewhere.

Know your investment timeframe

When you invest your money, you need to set a timeframe, that is, you’ll need to decide whether you are investing to meet short term needs such as saving for a holiday, for the children’s education or investing to meet financial needs in retirement.

If you’re investing for the short term, shares are generally more risky because of stock market volatility. Some of your money could be lost as share prices rise and fall from day to day. You simply can’t predict what you’ll get back at the end of your investment period.

Put your eggs in different baskets

When you’re investing, there are lots of different types of types of investments to choose from: cash, fixed interest, property, Australian and International shares. You can spread the risk by spreading your money across different countries, individual investments or investment managers.

The idea is to reduce the impact that any one of your investments would have on the total value of your investments, should it perform badly. Assets move in different economic cycles so when shares do badly, bonds or property might do well, or vice versa. This helps reduce risk and increase your returns.

Don’t play it too safe

People nearing retirement often think they should move their savings into ‘safe’ assets. But in reality, the safer option could turn out to be the risky option. Why? Because it’s common for people to spend 20 years or more in retirement. History shows that riskier assets that may give better growth in the long run tend to experience more highs and lows in the short term. But over time, risks can diminish and they may do better than safer options.

Get expert investment advice
To help answer these questions and start planning for your retirement, please contact us today.