1. Define your goals
Setting clear goals with achievable targets is the first step in the planning process. For example, 'I want to retire at 60 with an after tax income of $50,000 which will last at least 25 years'.
2. Understand the investment basics.
The main things you need to get to grips with are the different asset classes (ie Australian and global shares, property and fixed interest) and how they perform, the relationship between risk and return, and why diversification is something you should consider.
3. Check your investment strategy options.
There are quite a few strategies that you can use to build wealth and achieve your goals faster - starting a regular investment plan, investing for growth and re-investing distributions are three examples.
4. Decide if you need professional help.
Keeping up with changes to tax, superannuation regulations, market movements and tracking investment performance can be a bit of a minefield. We believe that working with a financial adviser can help you achieve your financial goals.
5. Start investing.
No matter how much time you spend considering your strategies, watching the stock markets or planning which funds to put your money into, until you place those investments they can't start working for you.