Wednesday 20 April 2022 by FIIG Securities Investor-profile-Louise At FIIG

Client profile - Investment strategy with Louise

After her career abroad and a move back to Australia, Louise, 53, is now enjoying her retirement. Louise has taken it upon herself to learn about bonds so she can feel comfortable and confident in her investments. Below, Louise tells us about how her investment strategy, and how she built her confidence to invest in bonds.

What was your first investment and how did it go?
Real estate – buying and selling apartments. I purchased a well-managed apartment in a development on the Gold Coast. It rented day and night in the tourist industry so provided a very good return. This first investment gave me the confidence to invest further and subsequently I bought a house in Mermaid Beach which had great capital appreciation.

How did you start in bonds?
I did a lot of research. I looked at the different bond offerings because I wanted to be confident about where I was putting my money. Investing in bonds enabled me to build a relatively stable income whilst managing a level of risk I was comfortable with.

What has been the best piece of investment advice you have received and who was it from?
Invest in what you know, I can’t remember who gave me that advice. Invest in something that you have a good understanding of, whether that be through your own research, or through your own interests.

What proportion of your portfolio is in fixed income?
50% of my portfolio is with fixed income. FIIG actually have a lot of educational material available to investors and I read that the portion of fixed income in your portfolio should increase with your age as that is also reflective of your income needs. If you’re in your 70s you probably don’t want to be waiting around for capital growth - you want income to support your retirement needs.

Do you pursue a particular strategy?
I keep my fixed income investments diversified with risk, industry, type of security, and term.

What are you hoping to achieve personally through investing?
A peaceful retirement. If I wanted to be a dynamic trader, that would be like taking on another job and I don’t want that stress. I want my money to work as hard as I did so I can enjoy my retirement.

Where do you get your information about investing?
I do my research. There’s a lot of information available that helps me make my investments decisions.

How would you invest $100,000 if you were given it tomorrow?
I would mirror what I have been doing and be sure to stay diversified. With the current world news, I would look to invest in consumables, maybe look at oil and the impact on other sectors and things related to at-home entertainment.

What would be your advice to someone who is thinking about investing in bonds?
Start small and build your confidence, stay diversified not just across industries but also the type of security and maturities, and I’d give the same advice I was given; invest in what you know.