Paul's Insights: Invest your own way
Invest the way that suits you because if there’s one thing experience has taught me, when something becomes too hard or too time consuming, we’re more likely to give it away.
Your attitude to money can shape the way you choose to invest. Some people have a keen interest in building a vast pot of money for its own sake. For others, money is all about what it provides – the ability to make choices about how you live your life. We all need to eat and pay bills, but money lets us enjoy the fun stuff like family holidays and personal hobbies be they golf, surfing, or, in my case, sailing.
Another place we are all different is whether money is a passion or just a vague interest. You may for instance, be fascinated by the process of selecting shares. But that is too time consuming for others, myself included.
If you love to spend a heap of time researching the sharemarket, that’s great. Personally, I’m happy to directly hold shares in some of our most successful companies. But I don’t have the time to spend picking small company stocks, which may become the big companies of the future. Same deal with international shares, which I couldn’t hold directly without a lot of time and effort.
This is where InvestSMART makes such good sense. I want exposure to all these shares – and be able to reap the benefits without having to give up time on the water. InvestSMART’s free investment insights let me stay in touch with what’s happening in the market, while the portfolio manager helps me stay up to date with my portfolio. And thanks to technology, I don’t have to sift through reams of information that’s not directly related to my interests. The system knows what I have, and cuts out any clutter that doesn’t relate to me.
Costs are always something to watch for with investing, and this applies even if you take a DIY approach. The cost shouldn’t just be measured in terms of direct expenses like brokerage. You also need to work out the time you spend managing your investments (tax time can be especially challenging when either you or your accountant sort out your tax position).
The bottom line is, if, like me, you want to do some direct investing yourself and still use professional fund managers, no problem. If you want professional managers to do it all for you, that’s okay too. It’s all about investing in the way that suits you best. And it doesn’t have to be hard.
Today officially marks the launch of InvestSMART's new look and tagline – Let’s make wealth happen.
Last year, you told us that you wanted to be in control of your financial decisions. Our new look is symbolic of the changes we've made to our services, like our recently launched Compare your Fund tool, to help you meet that goal. For us, it's more than a new look. It's also a vision, a mission and an action plan we can start together, today.
Frequently Asked Questions about this Article…
Investing in a way that suits your lifestyle means aligning your investment strategy with your personal interests and time availability. Whether you enjoy researching stocks or prefer a more hands-off approach, it's important to choose a method that you find manageable and enjoyable.
Your attitude towards money can significantly influence your investment choices. Some people invest to build wealth for its own sake, while others see money as a means to enjoy life experiences. Understanding your motivation can help tailor your investment strategy.
Not necessarily. While some investors enjoy spending time researching the share market, others may find it too time-consuming. Tools like InvestSMART can help you stay informed and manage your portfolio without dedicating excessive time to research.
InvestSMART offers free investment insights and a portfolio manager that helps you stay updated with market trends and your portfolio. It uses technology to filter out irrelevant information, allowing you to focus on what's important to you.
When managing your own investments, consider both direct costs like brokerage fees and indirect costs such as the time spent managing your portfolio. Tax time can also be challenging, so factor in the time or cost of professional help.
Yes, you can combine direct investing with professional fund management. This approach allows you to have control over some investments while benefiting from the expertise of professional managers for others.
InvestSMART's new look and tagline, 'Let's make wealth happen,' symbolize their commitment to empowering investors to take control of their financial decisions. It reflects their mission to provide tools and insights that help you achieve your financial goals.
The 'Compare your Fund' tool by InvestSMART helps investors by allowing them to evaluate different funds, making it easier to make informed decisions that align with their financial goals and preferences.