Apr 16, 2021  | Tags: sustainable investing, purpose, investing

Our Insights

Investing isn't simply about making money. When your strategy is linked to your purpose, you can invest with maximum impact. 

So, it poses the question of 'what is your purpose?' When establishing your purpose, remember that the present is just as important as the future. Consider what you want to achieve or own now, as well as in 20+ years’ time. 

These are the areas to focus on when considering your investing purpose.

Retirement

Most - if not all - people will invest to fund the lifestyle they hope to live in retirement. Perhaps you see yourself travelling in your later years or engaging in different recreational activities. Or maybe you simply want to live comfortably and afford the little luxuries life has to offer. 

Whatever your retirement vision, chances are you won't be able to solely rely on your savings from your main income, which is where investing comes in. 

But the most important question to ask is when do you plan to retire? Some may love their job and not call it quits until their early 70s. There are also more people who seek to retire earlier than 'normal'. If this is the case, it's even more important to define your strategy now to ensure you can sustain yourself for longer without employment. 

Family

Buying a car. Securing a house. Funding a wedding. Preparing for the birth of your children. Then there's schooling and all of the others costs associated with raising kids. Each of these stages also require a steady income stream.

Looking ahead, you’ll also be thinking about your grandchildren and how you secure the long term future for your family. An investment strategy with family as the primary purpose is one of the most fulfilling ways to make an impact.

Legacy

Investing can go much further than your immediate family today – it can be about setting them up for life, when your children are well into adulthood. Further, the benefits of smart investing can be passed down from generation to generationb. Transitioning wealth effectively to your family can help set up a legacy of success.

But there’s more to it than handing over a sum of money. You need to consider broader personal and financial goals. What do you want? What do your loved ones want? And how do you make your approach sustainable, so family members know how to carry your legacy, use wealth well, and receive an inheritance both in finances and wisdom? This also becomes increasingly complex with bigger families.

And as much as you love your family, you do still need to prioritise your own happiness. It’s key you find the balance between setting up your family for life while still living comfortably yourself.

Making the world a better place

Perhaps the greatest legacy we can create is using our wealth to transform the world around us. The act of investing can stem far beyond your own needs and wants, and family. Especially in a society where environmental, social and governance related issues are extremely prominent, more and more investors are gravitating towards ‘sustainable investing’. This is where a person invests in and supports businesses that share the same values, working towards better outcomes that don’t go against your conscience.  

The best part is this movement leads to greater accountability and a win-win situation for everyone in the future, as more businesses have started to adapt and improve their internal processes.

So, this is your chance to make a difference and invest in your beliefs and passions, while also reaping the financial gains. What issues are you passionate about? Start your strategy there.

Get Advice

So with these factors in mind, ask yourself, why do you want to invest? What will you do with the wealth you generate?

After answering this question, the next step is strategy. Your 'bigger picture' purpose will heavily influence the investment pathway you take, particularly when it comes to short term and long term goals.

So, how do you go about this? That's where we come in. The team at Calder Wealth Management are experts in tailoring investment strategies to suit your goals and needs. 

Don't wait a moment longer to start investing towards your life's purpose! Call us on (08) 8373 3333 to schedule your free initial appointment.

Written by Anthony Hill at Calder Wealth Management.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.