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4 May 2022

Understanding Investments for Your Retirement Income


When you’re investing for retirement, you naturally want to know what your options are. Whether you have recently retired or are still a part of the workforce, you may find this quick guide to retirement investments from your trusted financial adviser in Hornsby helpful:

Investments for Retirement: What are your options?

To begin with, you may want to understand the types of investments you can choose from, which offer different rates of return, different liquidity levels, and risk factor.

Then you should consider mapping out your investment goals and how they will contribute to your financial future.

By gaining personalised advice, you can make informed investment choices, and be on track to achieving a comfortable retirement.

You can then evaluate each option for the specific goals you’re working towards for your ideal retirement.

What are the available types of retirement investments to increase your retirement savings?

The following are different types of investment options that you might consider:

  • Cash Investments: You may consider putting your cash in low-risk, short-term obligations, such as a deposit account, that can provide returns in the form of interest payments.
  • Equities: Are simply shares in the ownership of a company. They are the same as stocks, where if you buy stocks, you’re buying equities. They are considered high-risk as the market tends to be more volatile. 
  • Annuities: They are financial products, that can offer you a guaranteed income stream during your retirement.
  • Bonds: Bonds are when you can lend your money to an issuer either government or cooperation, in exchange for interest payments and the future repayment of the bond’s face value.
  • Real Estate: You may want to consider purchasing an investment property and renting it out to be able to benefit from regular payments and use it as a form of retirement income.
  • Exchange-Traded Funds (ETFs): Investing in ETFs are similar to investing in stocks as they trade on regulated exchanges. They track broad-based or sector indexes, commodities, and baskets of assets.

What Are Your Investment Timeframes?

Consider your investment timeframes when retirement planning.

How long do you plan to invest your money? Some people reach their retirement goals in 10 or 20 years, while others want to invest for 30 or 40 years. You may want to include your investments and time horizon within your retirement plans.

It’s vital that you understand this because it can affect your overall retirement plan. For example, if you want a short-term investment, you may want to consider an investment that’s liquid, and doesn’t lock you in for an extended period.

Why Is Diversification Important for your Retirement Investment Portfolio?

There are two reasons why it’s so important to diversify your retirement investments.

  1. By spreading your money into different types of investments, you can potentially reduce the risk of significant losses and protect your investment returns.
  2. Diversification can allow you to maximise your return over time, which can put you in a better position to meet your retirement goals.

A diversification strategy can maximise your risk/reward. If you have too much of your money in a risk-free investment, such as a bank account, you won’t usually see a high return. On the other hand, if you put too much of your money into an investment with a high risk, there’s a high chance of losing a fair amount of your money.

By diversifying your investments, you can balance risk with return, keeping a significant portion of it in low-risk investments and the rest in slightly riskier investments. This is so, when one investment isn’t performing there’s a chance the other investment is still providing a return.

For more on diversification, check out our blog to learn: How to Build a Diversified Portfolio that Matches Your Investment Risk Tolerance.

If you are unsure about what investments you should make for your golden years, you may want to seek a trusted financial planner who can offer advice on the tax implications of investments, fees and potential risks involved. They can inform you, after considering your financial situation and financial goals, of what investments may be most suited to include in your financial plan.

Seek Expert Advice from a Qualified Investment Adviser for Your Retirement Planning

If you’re planning to invest for your retired years, then you’re doing a great job of planning ahead. Having a plan in place can provide you with the best chances of reaching your goals.

Hyland Financial Planning offers you the services of an experienced financial adviser in Hornsby who can help you understand the ins and outs of investing to help grow your nest egg.

Contact us today so we can discuss your options!

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Hyland Financial Planning provide expert advice across the Lower North Shore area, Hornsby and Sydney CBD to talk to an expert in retirement planning, financial advice or how to get the most from your super book a meeting at one of our convenient offices.

Suite 403
20 George St
Hornsby NSW 2077