The value of barbecue advice

Have you ever sought financial advice from a friend at a barbecue?

Autumn is one of my favourite times of the year. The weather’s still warm enough to enjoy the outdoors without being too hot and you no longer get carried away by those annoying flies. To me, it’s the perfect time of the year for barbecue season (except for the last weekend in September when Carlton will trounce Collingwood). It’s hard to beat a good steak, cooked to perfection and sharing a few drinks with friends both old and new. Being a people person, I enjoy company, catching up with old friends and meeting new ones. So this time of year is always very social.

One of the most common questions I am asked five minutes after meeting someone for the first time is “what do you do for a living?”.

I reply usually with a longer winded version of the obvious answer, “I am a financial adviser”

This is usually followed by something similar to “Really? What do you recommend I invest my money in, to get the best return?”

 

Now, most of us are familiar with four main areas of investing.

1.       Property; we all love a good property but should you invest in commercial property or should you focus more on residential property which has been growing rapidly for a number of years now?

2.       Shares; should you dive head first into the stock market and gear up on the old faithful shares such as the banks and Telstra, which have been so consistent for so long.

3.       Cash; are you a safe investor and happy to get a lower return as a trade off for the security offered by having a ready source of funds available when you require them.

4.       Or should you invest in a friends business and let someone else have control over what happens to your money. Do not forget this point, it is your money.

 

OR should you diversify your investments and have a little in each sector?

At this point, I need to summarise what I know about you.

·       I assume you like barbecues,

·       I assume we both know the same person otherwise you would not be here and

·       Finally, you have some hard earned money to invest.

Understandably, there is so much more I need to know. What type of investor are you? How much risk are you willing to take? (the general rule of thumb is the greater the reward, the bigger the risk) And finally what is your tolerance for loss?

We like to think every investment will make us money, however all investments come with a certain degree of risk and probably most importantly what is it you are trying to achieve. So the question you should really be asking is “what is the best investment for ME”.

In our office we do things a little differently to the traditional financial adviser. We have what we call a “Goals Wall”. This wall consists of the 29 most common goals people have and allows us to have the conversation of why that goal is important to you and then come up with strategies as to how that goal is going to be achieved.

 

So if I run into you at a barbecue and you do ask me how you should invest, don’t be surprised when I reply, I would love to help you invest your hard earned income, but first I need to know more about you so let’s make a time to catch up. Who knows, it might be the most financially rewarding hour you ever spend.

 

To start exploring your goals, visit this link and call us to see how we can help you achieve your goals.

https://www.amp.com.au/goalexplorer

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Although this information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.