Years ago the time-honoured way of investing was t o simply have a savings account in a bank. These days, if you want a retirement income you have to invest in a more aggressive manner. There are various asset classes that can be considered for this investment strategy. Fixed interest investments or securities can make some capital growth and profits when they are traded in the latter case.
Equities (shares) have the potential for good capital growth over a term of 3-6 years. Tax imputation is also available. That is, if the company has paid tax on their profit that is then paid to you as a dividend, you will be entitled to a tax credit.
Property investments can be real estate or listed property trusts (LPT). Real estate includes residential (houses) retail (e.g. shopping complexes, industrial (factories etc) and others. LPTs are bought sold and traded via the stock exchange.
Multi-sector funds are good because they allow you to invest across a wide sector of asset classes, including internationally. Each multi sector fund has a specific focus i.e. income or capital growth.
Managed funds are often preferred by the small investor as a way of investing without all the trouble of doing it. Numerous investors provide a pool of finance and a person hired for the job, or more often an investment company manages the investment. Many banks provide managed investments.
Investment Basics
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As a general rule, the larger the potential investment return, the higher the investment risk, and the longer you need to remain invested to reduce that risk. Therefore I prefer to spread my investments across a multitude of investment opportunities including, cash, shares and managed funds.
I hope that answers your question?