Everyone has different personal and financial circumstances and goals in life. And the return we want for our investments and the risks we are prepared to accept vary enormously between people. That means the types of investments suitable to our needs will also vary greatly.

So first it’s important to understand your current position, where you want to get to and then determine how to get there. Here are some basic questions to get you started.

What are your goals for the short, medium and long term?

• Short term – 1 top 3 years, for example saving a deposit for an investment property 
• Medium term – 3 to 7 years, such as saving for your children’s education 
• Long term – 7 years or more, including saving for retirement

What is your current situation?

Your age, your current assets and liabilities, your family circumstances and dependents, and any special needs will determine the way you invest and your reasons for investing. These factors will also play a part in how much risk you are willing to take. 

How much risk are you prepared to take?

To help you choose the right type of investment you first must understand how much risk you are prepared to accept (your risk profile) and how long you are prepared to invest to achieve your goals (time horizon). This will help you determine the type of assets you might invest in.

Can financial advice help?

If you’re unsure about where to start, getting a financial plan and some expert advice is a good way to get started. Find out more.

What’s next?

• Learn more about the key principles of investing
• Understand more about asset classes
• Read about how Perpetual invests