Bank of Mum and Dad
30/05/2024
Market Update – June 2024
20/06/2024
As you enter your forties, you step into a phase of life with significant wealth-building capacity that can span decades. This presents a prime opportunity to adopt a growth-focused approach to your investments.
Research perfectly illustrates the benefits of investing in growth assets over the long term. As shown in the Vanguard Index Chart, if, in 1993, you’d invested $10,000, by 2023, your investment would have grown to:
- $176,155 if you invested the money in US shares; or
- $138,778 in Australian shares
Conversely, if you’d invested that $10,000 in defensive assets, you would have earned:
- $49,394 if you invested the money in Australian bonds; or
- $34,737 in cash
Growth assets such as US and Australian shares have traditionally enjoyed strong long-term returns, while defensive assets, bonds and term deposits, have experienced much lower returns. That’s why most people in their forties should be growth-focused.
At the same time, if your tolerance for growth assets and volatility is lower, you can protect your downside by diversifying your assets to defensive investments.
Remember, the key to successful investing lies in striking the right balance. This balance must be tailored to your unique financial circumstances, goals, and risk profile appetite. It’s not a one-size-fits-all approach but a strategy designed to align with your specific needs.
Want to know the right investment strategy for you? Let’s discuss it.
This is general advice only. Please speak to a licensed professional for personal advice related to your specific situation. If you want expert advice on achieving your goals, speak to Affinity Private Advisors today by calling 1300 769 304, emailing enquiries@affinityprivate.com.au or filling in this online form.
The information contained in this article is current as at 23/04/2024. Any advice or information contained in this report is limited to General Advice for Wholesale clients only.
The information, opinions, estimates and forecasts contained are current at the time of this document and are subject to change without prior notification. This information is not considered a recommendation to purchase, sell or hold any financial product. The information in this document does not take account of your objectives, financial situation or needs. Before acting on this information recipients should consider whether it is appropriate to their situation. We recommend obtaining personal financial, legal and taxation advice before making any financial investment decision. To the extent permitted by law, Affinity Private Advisors does not accept responsibility for errors or misstatements of any nature, irrespective of how these may arise, nor will it be liable for any loss or damage suffered as a result of any reliance on the information included in this document. Past performance is not a reliable indicator of future performance.
This report is based on information obtained from sources believed to be reliable, we do not make any representation or warranty that it is accurate, complete or up to date. Any opinions contained herein are reasonably held at the time of completion and are subject to change without notice.
.
