Financial Planning: Finding The Right Mix For Your Goals

Investment planning involves assessing your financial goals, understanding your capacity for risk and choosing assets that reflect your situation. Rather than reacting to market shifts or news headlines, having a clear plan encourages thoughtful, measured decisions.

Key elements of investment planning include:

• Setting clear, measurable goals
• Understanding your investment horizon (short, medium or long term)
• Reviewing and adjusting the plan as needed

Without a plan, it's easy to chase trends or become discouraged by short-term performance. A documented strategy gives you something to refer back to, helping you stay on track and maintain confidence during periods of volatility.

It’s also important to consider the role that different life stages may play in shaping your plan. For example, someone starting their career might prioritise growth, while someone nearing retirement may focus on income stability. Reviewing your plan annually can ensure it stays relevant.

Diversification means spreading your investments across various asset classes to avoid overexposure to a single risk. By doing this, downturns in one market may be offset by gains in another.

Diversification can be achieved through:

• Asset class: including shares, fixed income, cash, and property
• Industry: investing across multiple sectors like health, energy, technology and finance
• Geography: combining domestic and international investments

No investment is completely risk-free, but diversification helps smooth out returns and can create a more resilient portfolio over time.

Shares represent ownership in a company and can play a useful role in long-term wealth building. They offer the potential for capital growth and may also provide dividends. However, their value can rise and fall sharply in the short term.

Things to keep in mind:

• Share prices can be influenced by factors outside of your control
• It's common for markets to fluctuate over time
• Returns aren't guaranteed, so patience is important

Shares can be suitable for those with a longer time horizon who are comfortable with ups and downs along the way.

Property is another common asset class used in financial planning. It may provide regular rental income, as well as potential growth in value. Property can also be leveraged, meaning a relatively small deposit can allow for control of a larger asset.

Considerations include:

• Upfront costs such as stamp duty, legal fees and inspections
• Ongoing expenses like maintenance and property management
• The potential impact of interest rates and the broader economy

While it offers tangible benefits, property is typically a long-term investment and can be difficult to exit quickly if needed.

Fixed income investments, including term deposits and bonds, provide regular interest payments and tend to carry less price volatility than shares. They may be suitable for conservative investors or those nearing retirement who want more predictable returns.

Pros:

• Generally lower volatility
• Can offer steady income over a set period

Limitations:

• Lower potential returns compared to growth assets
• Inflation may reduce the value of fixed payments over time

These investments can act as a stabilising component within a broader strategy.

Managed funds and Exchange-Traded Funds (ETFs) allow you to invest in a collection of assets, such as shares, bonds or property trusts. They can provide instant diversification and access to markets that might otherwise be difficult to invest in directly.

Benefits include:

• Pooling of funds with other investors
• Access to a variety of markets and strategies
• Convenience of buying and selling through a platform

These options still carry market risks, and fees can vary, so it’s important to review what you’re investing in and why.

Superannuation is one of the primary tools for retirement planning in Australia. It is compulsory for most employees and offers tax-effective ways to save over the long term.

Ways to manage superannuation effectively:

• Reviewing your investment options regularly
• Understanding fees and insurance within your fund
• Considering additional contributions to benefit from compound growth

Some people also explore self-managed super funds (SMSFs), which offer more control over investment decisions. However, they also come with added responsibility and compliance requirements.

It’s also worth checking that your super fund aligns with your personal values and financial priorities. Many funds now offer ethical or sustainable investment options, which may appeal to those wanting to support environmental or social outcomes.

With so many options available, deciding where to invest and how much risk to take can be challenging. Working with a licensed financial adviser can help bring structure and perspective to your plan.

A financial adviser may assist with:

• Defining your goals and capacity for risk
• Identifying suitable investment options
• Monitoring your portfolio over time

Advice should always consider your personal circumstances and be guided by relevant regulations and standards.

At Ironbark Wealth, we support individuals and families looking to create tailored investment strategies. From managing risk to planning for retirement, our approach is based on clear advice and ongoing guidance. Whether you're reviewing your super, considering property investment or building a diversified portfolio, we're here to help you make informed financial decisions.

We operate under the Australian Financial Services Licence (AFSL 340289) through Wealth Today Pty Ltd and provide services throughout Dubbo and Orange.



Visit https://www.ironbarkwealth.com.au to find out more or arrange a consultation.

Disclaimer: This article provides general information only. It does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek advice from a licensed adviser before making investment decisions.