So, how do you invest your money?  When deciding how to go about investing those hard earned dollars, you need to decide whether you’ll:

• do it yourself, or
• pay a financial advisor to do it for you

Both options have their pros and cons. However, you can – of course, do a bit of both.

Buy, sell or invest yourself

The advantage of choosing to invest yourself is that you’re in control of all the decisions. It will also save you money by making it cheaper than paying a financial advisor to invest your money. The down-side risk is that you may overrate your expertise and may not diversify.

If you choose to invest directly, it’s important to have a thorough plan and put in the time to research your investments. You should also keep track of how they’re performing.

Use a professional investment manager

If you decide to invest in a managed fund, some managed accounts, exchange-traded fund (ETF) or a listed investment company (LIC) your money is pooled with other investors. A professional investment manager then buys and sells investments on your behalf.

When using a professional, you benefit from their skills and expertise to make investment decisions. However, have to pay fees for this service. These can include management fees, administration fees and entry and exit fees.

See managed funds and ETFs to learn more about these investments.

Investing with a financial adviser

Seeking a financial adviser can assist you further by setting your financial goals, understand your risk tolerance and find the right investments that are suitable to you and your circumstances.

Make sure your financial adviser has an Australian financial services (AFS) licence or is an authorised representative. Check their qualifications on the Financial Advisers Register.

• Decide what it is that you want from the advice. Would you like help with investing money, budgeting or planning for retirement?
• Ensure that you read your adviser’s Financial Services Guide (FSG) to learn about their fees and services, and how they deal with complaints.
• Do your due diligence by comparing the fees charged by different advisers, to make sure you’re getting a good deal.
• Be careful about how much access your adviser has to your investment accounts.

Ensure that you talk to your adviser if you have any questions with regards to their advice and ensure that you understand their explanations in full.

If you’d like the Team at Wealth Planning Partners to assist, we’d be more than happy to help.  Just reach out on 07 5593 0855.