Step 2 - Change your thinking
Step 4 - Design a spending plan
Of course, the internet is chock full of young #experts who reckon they can time the market expertly (not that most of them ever make any money from doing so - lol), but just as most drivers believe they are of above average ability, in reality sadly it cannot be so!
Speak to a licensed financial advisor who can help you to decide on the right strategy for you - by which I mean an independent professional who will charge you a straight fee for service, not some slimeball that recommends buying an off-the-plan apartment in your self-managed super fund in order to cream off a fat 6 per cent commission for himself!
With interest rates at rock bottom, globally many fixed interest investments have gone from guaranteeing a "risk free return" to practically offering "return free risk". And while cash as a buffer is an important safety net - as well as allowing you to pounce on great opportunities which may come along - holding too much cash will act as a drag on returns.
Step 6 - Snowball your wealth
Step 7 - Invest counter-cyclically
Not dissimilarly, property investors should aim to do the same, though at the time of writing in the residential sector rental yields are fairly dismal in some capital city locations. The property market cycles do tend to recur over time - as rising demand pushes up prices, construction and supply respond, in turn dampening rents and then prices. Rinse and repeat.
Disclaimer: This blog is not specifical financial advice. Speak to a licensed financial advisor about your ideal portfolio allocation and the investments that are appropriate for you.