A successful investment strategy can hold the key to unlocking the financial freedom you’re dreaming of – but unsuccessful investments may set you back considerably on that journey.

So how do you invest successfully?

Considering the uncertain and unpredictable events of the last few months we thought it was worth revisiting some principles we follow to ensure clients can invest successfully through these times.

Here are a few steps that successful investors follow across the globe:

  1. Plan – map out your income expectations for your investment strategy. Set goals and understand the risk vs return scenario for the options at hand. Talk to your adviser to develop a strategy that is manageable and sustainable even in tougher markets, so your investments continue to fund your lifestyle.
  2. Understand changes in the market – know what might happen to your portfolio if the market weakens and stick to your plan to see it through. Knee-jerk reactions to selling assets that are temporarily underperforming could be far more costly than weathering the storm.
  3. Diversify – it’s the old saying “Don’t put all your eggs in one basket”. Consider opportunities across different sectors in Australia, and don’t rule out global brands to spread your investments geographically.
  4. Don’t panic – refer back to your plan and goals regularly and discuss the best way forward with your adviser. Often market downturns also present opportunities that will yield rewards further down the track.
  5. Protect yourself – life is full of surprises, and in case of an emergency people often need to access their investments to keep going. Income protection, TPD and life insurance are a smart approach to avoiding having to sell assets at a considerable loss.

Successful investment strategies always need to be built on your personal circumstances and goals. If you would like to discuss your investment options with one of our financial advisers, please call 08 8172 9111 or contact us at advice@catapultwealth.com.au.