For people like us who have spent our lives in regional towns, we’ve seen our havens grow into thriving and bustling cities over the past few decades. Our patch, Orange, is now home to approximately 42,000 people, and the dynamics of the local economy continue to evolve and diversify.
Traditionally, the wealth in regional communities was pictured as large expanses of farmland, healthy crops growing in the distance, bustling shearing sheds, and fat cows billowing around the full dams. Land ownership has been the staple of financial security in the regional centres for generations, however, as regional areas become more cosmopolitan, those of us lucky enough to share the country lifestyle need to think beyond the paddock and build financial security with savvy financial planning and investing in asset classes that work as hard as you do.
The days of wealth being tied up in a single asset, such as a farm or family home, are changing, and most regional populations are no longer employed solely by the agriculture sector. Services, small to medium-sized businesses, health and aged care, construction, education, tourism, and hospitality are all significant employers. People working in these sectors are looking for financial vehicles to accelerate their savings through diversification, investing, and wise money management strategies.
When you’re new to investing and financial planning
Most Australians do some form of financial planning. A household budget is the most common, however, it can be hit and miss depending on factors out of your control. Fuel and energy costs, the spike in food prices, school fees, and interest rate fluctuations make managing the family budget challenging. With professional guidance, there is light at the end of the tunnel.
Even if you’re new to investing or unsure how to go about it, most individuals, couples, and families can begin a long-term financial plan with the right help.
Let’s examine investment options that are flexible and feasible within a range of risk tolerance levels.
Shares:
When you invest in shares, you buy part of the company. Most of us only buy a small portion. It may be a bank, health fund, mining or prospecting company, or even a tech start up. Shares are a common investment vehicle that can offer solid long term returns. Considering shares does require advice and steady management. They will fluctuate in value, and investing with an educated and researched strategy and a clear timeline is essential. Blue chip companies offer stability, while managed funds/EFTs (Exchange Traded Funds) offer a broader exposure strategy where your money is invested in many companies simultaneously.
Investing in property:
Australians do have a love affair with property investment. It is generally a safe investment and provides a rental income stream. We tend to think of property investment as a localised strategy; however, thinking outside and investing in residential or commercial property in growing regional areas or capital cities is well worth consideration. Areas with progressive infrastructure initiatives, reputable universities, healthy population growth, and lifestyle appeal are good property investment options. They may be more expensive to get into, however, the returns are stable and the risk is mitigated.
Managed funds:
A professional fund manager is responsible for buying and selling on your behalf. They pool money from many investors and buy a diversified portfolio of investments. Participating in a managed fund investment is a good option if you seek exposure to a wide range of assets but don’t have the time or expertise to research.
Superannuation:
Superannuation is up there with your home as the biggest investment in your life. With expert advice, your super has the potential to accelerate your retirement savings and set you up for financial freedom. Making extra contributions or creating a Self-Managed Super Fund, if it is right for your circumstances, are investment options that can be done. It is highly recommended to speak with professional financial advisors about your superannuation and how to invest in it for long-term gains.
I don’t have enough money or know enough to invest
The myths surrounding investing are shifting. We live in a time of increasing financial literacy, and people are more open to making their money work harder for them. What once seemed a habit for those who were financially educated, investing, diversifying, maximising superannuation, and seeking mortgage broking services, is now available to the broader community. While there is always a level of risk in investing in anything, not investing can be a greater risk.
You can begin investing in your retirement or planning financially for important acquisitions, such as your own home or your children’s education. The trick is getting started and having an expert work with you to map your journey and help you pivot when required. This is where a professional financial advisor is your life partner. They will help identify and establish your financial goals and create a realistic, achievable and most importantly a manageable financial plan. It is a strategy and one that has built in flexibility that can be adjusted when needed.
When you live in a regional town, having a financial planner who understands the financial challenges of regional living is a must. They have unique insights into the nuances of living and working outside capital cities and keep a close eye on what is happening in them to unearth opportunities you can benefit from.
They’re approachable and place a high price on their reputation, ensuring they put your needs first. Step Up Financial, now Australian Financial Planning Group, offers the best of both worlds. Local insight and old fashioned service married with a team of high functioning financial professionals, is the perfect balance to ensure you get the best investment advice and mortgage broking service to move closer to your financial goals.
We can help
Step Up Financial Group now Australian Financial Planning Group, is a team of qualified financial specialists. We help all Australians create financial stability and resilience every year while building toward a confident retirement. Contact us today for experienced, compassionate, and professional financial planning advice.