3.EMERGENCY
FUNDP38
2.REGULAR
INCOME P36
COVER STORY
So you have
$200aweek
to invest but
where should
youputit?The
best place can
vary depending
on your end
goal.Weget
the experts to
put together
portfolios
aimed at
helping you
achieve a
different
financial aim.
1.HOME
DEPOSIT P34
5.RETIREMENT
WEALTH P42
4.KID’S
EDUCATIONP40
S
avingforahomeislikelytobethebiggest
financialoutlayyouwillmakeforone
single item. According to CoreLogic, the
average house in Sydney, for example, has
increasedinvaluefrom$650,000in2012
toover$1,066,000in2017–a64%riseinfiveyears.
Putting aside the affordability and housing bubble
debate,togetonthepropertyladderyouhavetosaveup
adepositofbetween10%and20%ofthepropertyvalue.
Investing in a balanced low-fee portfolio of exchange
tradedfunds(ETFs)isonesmartwaytomaximise
yoursavingsandgetyouclosertoyourpropertygoal.
There’salottoconsiderbeforeyoubuyahome.First,
is it right for you or are you suffering FOMO (fear of
missing out) just because everyone else is doing it?
If buying is definitely right for you, consider the
practicalities. Where do you want to live and where
can you afford to live? Can you cover the repair and
insurance costs? When interest rates go up (and they
will) can you service your mortgage?
INVEST EARLY AND REGULARLY
Startinvestingearlyandregularly.Investingjust$200
aweekmightnotsoundlikeabigamountbutitwill
make a real difference in the long-term.
Investingearlymeansyoucantakeadvantageof
compound returns, which is simply earning additional
returnsonprofitsthatarere-invested.Settingaside
a small amount on a regular basis can help you reach
your goal faster.
Assuming growth of 7% a year, the initial $200 invest-
mentwithweeklytop-upsof$200wouldendupbeing
around $60,000 after five years with compounding. If
aftertwoyearsofinvestingyouincreaseyourweekly
investmentto$300,youcouldgetcloserto$80,000.
DIVERSIFICATION IS KEY
Oneofthebestwaystomaximiseyourinvestment
returnsoverthelongrunistoinvestinabroadmix
of investments for diversification and keep your fees
low. ETFs give investors access to both broad diversi-
- HOME
DEPOSIT
WHERE
TO INVEST
$200PW
OVER
5 YEARS
STORY
CHRIS
BRYCKI