Building wealth from an early age sounds like the ultimate Australian Dream, however building up your bank account may no longer be the way to go.
It’s been reported that cash has the least reward for investors in recent times with a minimal 0.7% ahead of inflation. “Bank savings accounts are really safe up to$250,000, so they serve a purpose if you just want to keep that money safe. But they shouldn’t be seen as an option to build wealth,” says Daniel Foggo, Chief Executive of peer-to-peer lending platform RateSetter. Robo advice is changing the way investor act, and provide low cost alternatives.
Given that interest rates are expected to decline further, it may be time to invest in other wealth building strategies. The evident downside to these alternate strategies is a higher level of risk that many people are not willing to take given the current economic climate.
Also, if you have not done your research or sought appropriate advice when it comes to investing in shares, it’s important to get advice from the experts.
There are platforms that can help you to build a more risk averse portfolio, with the initial investment starting at around $2000. How do share investment platforms work? They tend to ask a series of questions before they match you to one of a number of personalised portfolios.
We always recommend research, and speaking to an experienced and capable advisor to assist you with your investment needs. At Aspect we do not provide product advice, but can be certain you recommend an advisor to assist you.