Creating your plan
Once you’ve thought through the financial basics, it’s time to start planning. What are you investing for? Is it to buy something big, like a house, (building up your deposit), an overseas trip, a boat, or something else?
Or it could be that you’re investing to create a passive income and to give yourself more financial freedom. Or to have more lifestyle options once you’re retired (or to retire early)? Once you’ve identified your goal, you can then think about your time horizon. If you’re investing in shares, the usual recommended timeframe is 10 years or more.
Consider your risk profile – higher growth funds or shares can give the best returns, but your balance will move around a bit more – so you could have gains or losses, depending on what the market is doing that day. Low-risk investments can provide more certainty, but generally offer lower returns. For more detail on creating an investing plan, see our investing plan checklist.
Download our investing plan checklist