Rethinking investment risks by age

Rethinking investment risks by age

There are many different ways that many aged groups think about investment risk. Typically the older people are the more risk averse they tend to be. However, Merchant Channels Co have many years of experience collecting information, assessing risk and assisting you think about which products are right for you.

Over 55

Investors who are over 55 are typically risk averse and seek stability over large returns on their money. Over 55 tend to favour tangible investment such as property, jewelry and collectables.

The good news is for investors over 55 is that the residential development boom doesn’t have the economic markers that indicate signs of halting or an immediate slow. Although there will be a correction in the demand vs supply of new residential homes and apartments. There are many options for your investment portfolio that are risk averse that attract generous returns,

Jewelry pieces increase in value over time but that is dependent on the cut, the gemstone and the purity of the metal used to form the peace. Merchant Channels Co have a multitude of experience sourcing and collecting the most precious of pieces for your portfolio. Timeless pieces allow wealth to be distributed through to your family instantaneously and without debate about costs (subject to tax law about gifts and transfers of wealth).

Over 40

Over 40 investors are interesting in terms of their investment activities. They are fond of holidays, large homes and new cars. Many people outside of their age bracket ask “How can they afford that lifestyle?”.

Over 40 investors typically accumulate a variety of homes in variety of places. These homes are managed by different realities and typically have low vacancy rates.  Over 40 investors have a large amount of passive income that it often attached to a family trust. Their income from their job, hobbies and rental income all receive generous tax breaks.

Merchant Channels Co have a large amount of experience working with family offices, business dynasties and high net worth individuals. We assist these individuals in forming tax effective trusts that allow them to access their funds when needed whilst making the most of the lenient tax laws. Merchant Channels Co are experience investment bankers, wealth managers and are local to your home.

Over 30

People who are over 30 generally own their first home and are looking to purchase their second home. They typically have a joint income of $180-$240K, three credit cards on average and make additional payments on their mortgage.

People over 30 have a relaxed attitude towards debt and are typically risk tolerant. They have multiple investments in a variety of managed funds, make above-average risk investments in the stock market and do not care much for term deposits.

Generally speaking the tax period June- July is the most stressful period for over 30 due to the nature of their investment activities and not having the time or energy to stay organised.

People over 30 start to think about their retirement options and are generally advised to make the maximum Superannuation contribution they can.

Over 20

Investors over 20 invest heavily in the stock market and are using shares as means of achieving greater returns on capital to save for their first home. People over 20 are risk tolerant and are prepared to take additional risks to achieve greater returns on capital.

Investors over 20 are not engaged in complex investment activities and usually are not big cash savers. Investors over 20 are keen to start their property portfolio and achieve financial freedom earlier.  Merchant Channels Co are early retirement specialists that can assist you in achieving an exciting and independent retirement.

As investors over 20 are living independently their expenses are generally higher  however their income potential is lower due to the fact that they do not have much job experience and are likely to have just finished their bachelors degree.

Investing for your children

Investing for your children is a great idea to start distributing your wealth. There are a variety of options for you to distribute your wealth tax free to your children. Minors are taxed harshly as families have used their children in the past as a means of hiding their income.

Distributing wealth to your children is a complex procedure that should be left to the wealth management experts in sydney.

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