Business Finance

Tips on Investing in Shares for 2016

A lot of New Year’s resolutions are broken every year, but here’s one you should do your best to keep: investing in shares. You’ve been meaning to improve your financial situation for a while, right? Well, here is the best way to do it. This is a long-term investment, sure, but investing in shares is going to be completely worth it in the end. So where should you put your money? How do you break it down? Let’s look at some ideas.

Investing in Shares

  • Telstra (20%)

Investing in shares at Telstra is a good idea because the majority of the population uses its services. In other words, it’s not going anywhere, and it is set to produce a whole lot more revenue over the next few years. In addition, you get significant dividends. All in all, a sound (and smart!) investment, considering the wide-spread use of mobile services, internet and landline services.

  • VAS ETF (20%)

A Vanguard Australian Shares Index exchange-traded fund should get about 20%. While it takes out the need for investing in shares individually, it is also largely dependent on big retailers, big banks, big miners, etc. So if their markets are declining, so will your money. That’s something to keep in mind, which is why you should only put 20% here.

  • Something you pick out (10%)

Why not take a risk and see what you can come up with? It’s not a large percentage of your total, so you can afford to practice your business sense and study the market. What is a good place for investing in shares?

  1. Somewhere that has growth potential
  2. Somewhere you already shop
  3. Something you believe in
  • Wesfarmers (20%)

Wesfarmers owns a wide diversity of places you probably shop at, as well as the rest of the population. That includes Bunnings, Kmart, Officeworks, Coles or Target, so you can see how the profit margins are not going to be small. Their shares are not wildly expensive either, so you could probably afford to invest here. Not to mention that since you already shop there, you are essentially putting money back into your own pockets.

  • International ETF (30%)

Why not look outside Australia, for a change? There’s lots of money to be made in the rest of the world; most of the money, actually. That’s why it’s smart to be investing in shares in a diverse conglomerate of international companies. You get the best of both worlds, and that translates to money. 30% is a good bet for investing in shares here.

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