June 2001 Volume 82 Number 6 "serving the protectors"

Setting Goals and Staying Focused

So often things that happen in life cause us to become distracted and lose track of our goals. Planning and staying focused will more likely achieve our goals than not having a plan at all. We all know of this, at least in theory if not in practice.

But have you considered the difference between lump sum investing and regularly investing smaller amounts into managed investments? A managed investment combines investors’ funds to collectively purchase assets which would be too expensive for a single investor to acquire.

There are several major considerations for a regular savings plan:

• First, it is a good form of self-imposed budgeting that automatically forces you into planning your financial future.
• Second, regular investment avoids your buying into the markets in one go and trying to guess its highs and lows. By investing regularly you don’t have to worry about exactly where in the price cycle the share market is at a particular point in time. You simply need to invest a regular amount each month.

Through investing regularly over a long period, the highs and lows even out. This principle is known as “dollar cost averaging”. With dollar cost averaging, you buy fewer units in a particular fund when the market is up and more when the market is down. This happens automatically.

There are more specific issues such as portfolio diversification and tax minimization that you should also consider. For instance, gearing your investment has tax deductibility for interest charges and can lever up your investment which, depending on your personal situation, may be an option for you.

We encourage you to take the time to discuss your financial planning needs with a qualified financial adviser.

Retirement Seminars

PCU Investment Services Pty Ltd’s retirement seminars - previously outlined in the February issue of the Police Journal - have been fully booked, and an additional seminar has also been filled. So that we may arrange a further seminar in the event of sufficient demand, we welcome you to register for these popular seminars by phoning us on 8231 5533.

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