Whether you’re a UNSW student in part-time jobs or a young upcoming start-up launcher, you know the value of money. Finances are turning more complex and more competitive by the day. In the age and time you’re living in, nothing comes cheap.
You might have even paid a small amount to get some financial advice, haven’t you?
If you need a stable financial footing in the future, nothing can come close to a higher return with fixed-term investments. But hey, making up the mind about preference shares does require no space for confusion about the best investment options in Australia.
What Points to Keep in Mind Before You Start Investing?
Congratulations! You have taken the first step to build yourself a nest egg for the future. If the choices seem to be swarming your mind, getting a clear picture should be your next step.
As easy as investing appears, saving a chunk of your money while catering to the daily requirements in Australia needs management. Isn’t it amazing how many benefits a single act can provide? From teaching financial independence to discipline, investing seems to be a parental figure that can mould you.
Before you head off to an investment firm, here’s what you should consider:
1. Trade in Your Style
Are you already a finance enthusiast? If you know the market flow and can keep track of it, active investment is for you. However, passive must be your choice if your focus is on building your portfolio and you are cynical about risks.
Your investment style will depend on your risk appetite and commitment to the investment.
2. Peek in Budget and Risks
According to Morgan Housel, investments don’t agree with greed, especially if you want them long-term. That’s why it’s crucial before jumping into the pool of risks, luck and patience to analyse your budget as per the market cycle.
Don’t just start with investment options in Australia because your neighbour successfully made a few pounds in interest. You should specify your investment option according to the amount you can quickly shed off and the taste of risk.
3. Tally the Time and Goals
Unless you want to end with a retirement fund, it’s better to keep a time frame in mind before you invest your money. In fact, having a diversified portfolio with different maturity periods will bring you the best financial exposure and long-term returns.
What are Preference Shares and the Benefits You Get?
Ever thought about having a claim in a company’s assets? Preference shares can do it for you. With Preference shares or stocks, you become a preferential shareholder of the company issuing its shares. Not only this, but you also get to:
1. Have a Higher Claim on Company’s Assets
Whether it’s adequate compensation or claiming assets during bankruptcy, a preferential shareholder will be ahead in the queue.
2. Plus One On Investor Benefits
You’re free to trade your shares with a pre-decided number of common shares. Also, if the company gets profits, your dividend gets hiked.
3. You are First On Dividends
Once you’re a preferential shareholder in a company, you will be the first to receive dividends, even during unpaid dividends remittances.
If you’ve surplus capital and wish to release the financial stress from the future, preference shares are your game. Unlike other investment options in Australia, you’re always in the safe zone in terms of your share.
When it comes to the youth, time is money. So, are you going to start your investment now?