I am in my 40s or 50s

Planning for your financial future now is the key to successful investing.

Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.

2.1. Review your finances

Before you invest, review your financial situation.

Write down what you owe (your debts) and what you own (your assets). For your assets include your:

  • super
  • home
  • savings
  • other investments

Your financial adviser will help you with how to invest, how much you can put toward investing regularly and how you can diversify.

2.2. Set your financial goals

Write down your financial goals. For each goal include how much you’ll need and how long you have to reach it. For example, taking a $10,000 holiday in one year, or reaching $500,000 in superannuation before you retire.

Then divide your goals into:

  • short term (0 to 2 years)
  • medium term (3 to 5 years)
  • long term (5 years or more)

Setting and defining your financial goals will help you pick the right investment to reach each goal.

2.3. Understand investment risks

Investment risk is the likelihood that you’ll lose some or all the money you’ve invested. This can be due to your investment falling in value or not performing how you expected. All assets carry investment risks — some are riskier than others.