The Challenges of Investing and How to Overcome Them
Investing is by no means easy. Whilst the benefits are plentiful for those who can approach investing with a thorough, strategic plan, there are challenges that even the most prepared investor must seek to overcome. Yet no challenge is ever too great, and with ample research, planning and a strong financial plan, the challenges of investing can be respected without being feared.
So rather than just merely tell you about the challenges of investing, we have also suggested ways our MWL Financial Group experts can assist you in overcoming them, hopefully leading to you becoming a better investor.
- Acquiring Capital
Whilst we – and many others – will argue that large-scale capital investment is not required (start small and grow), some people may be targeting certain capital investment goals, such as investing an extra $200 per month. However, for someone with a relatively fixed income – such as those on a salary – acquiring the additional $200 per month may be a challenge.
Solution: Speak to one of our specialist Financial Planners, and organise your income and expenses in order to supplement investments.
- Knowing Where to Invest
For many, the stock market represents the great unknown. Knowing where to invest your money and why is an important part of investing. International markets? Domestic companies? Blue Chip? Growth? It can all be a bit overwhelming.
Solution: Speak with one of our specialist Active Investment advisors, and gain insights into how the market is functioning and where to invest your money.
- Being Patient
Investing is a long-term game. Those who chase short-term profits often find themselves out of money in next to no time. As the years go on, measured investment will see your wealth slowly accumulate. So how do you control yourself and be patient in the stock market?
Solution: Revisit your same specialist Financial Planner and our specialised active investment team, and redevelop your goals and expectations. Together, you can come to a workable solution.
- Managing Returns
So you invest in the stock market, and make some money through dividends (also choosing to reinvest some of the returns). However, this now leads to another problem – you aren’t sure of your taxation obligations, franking credits and other new financial elements that you have not had to deal with before.
Solution: Speak with one of our specialist Accountants, for the best advice on tax minimisation and lodging tax returns.
- Long-Term Goals
Whilst investing alone is a long-term game, what about the even longer term? The challenge for many is balancing investment goals with retirement goals, and ensuring that one has enough income from investments to live a comfortable lifestyle – whilst simultaneously ensuring enough money is being put away for farther down the track.
Solution: Speak to one of our specialist SMSF advisors, and gain advice on how best to structure your super to maximise retirement funds.
- Avoiding Negative Returns but Securing Positive Returns
Paper returns are all good and well when investments head in the right direction year upon year however the stock market moves up and down meaning one year of positive paper return could be wiped or turned into a loss the following year. The MWL investment team have a specialised approach to investing whereby positive returns are locked in (through their unique active approach) and in negative market years adopt capital protection strategies to significantly avoid erosion to your portfolio resulting in a super low risk approach to investing in these volatile times.
If you would like to learn more, please contact our Investment team to start your road to wealth today.