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Invest in shares

Too often, being involved in the share market is referred to as being on a roller coaster ride.

At StatePlus, we prefer to take a much more strategic and measured approach.

Technically speaking, shares represent a proportional interest in a business. Their returns are influenced by the ebb and flow of the underlying business’ profitability and outlook, as well as the general outlook for the economy.

These are highly variable, so returns from shares can be risky. However, they can also be a reliable way to generate real returns.

How is investing different to trading?

Trading is short-term. Investing generally takes place over a longer period of time. 

Shares should be seen as a long-term investment. Investors who have a shorter time horizon tend to earn poorer returns as transaction costs and taxes eat into their capital.         

A good way to foster wealth creation using shares is to buy a diversified fund, managed by a professional. Someone with the skills and experience needed to research companies and, when required, adjust the portfolio.

Investing doesn’t retire when you do

Even after you’ve retired, you can still invest in shares. However, in retirement your objectives are different, since you’re no longer earning an income and you’re using your savings to fund your lifestyle. So it’s important to have the right investment strategy and avoid having to sell good assets at the wrong time. 

Knowing the market well enough to spot those ‘golden goose’ opportunities, let alone avoiding the need to sell them, are things a professional will guide you on. 

At StatePlus, our approach to investing in shares is to try to mitigate the risk of capital losses by taking a diversified approach and tilting the portfolio towards less risky companies.

Interested to see how your retirement savings could benefit from investing in shares? Call your team member on 1800 620 305, and invest in your future today.