26 May How To Invest On A Disability Pension. 

Disability pensions can be hard to manage. Here are some tips and strategies for investing, maximising your return, and meeting your goals!

Financial Goals 

Everyone has different financial goals in life. For some, the goal may be to simply retire early. Others may want to continue working and investing in their future. Whatever your goal, it is important to have a plan in place to achieve it.

If your goal is to retire early, you will need to make sure that you have enough saved up to cover your expenses. You will also need to make sure that you have adequate disability coverage in place. And if your goal is to continue working and investing in your future, you will need to make sure that you are investing wisely and saving as much as possible. Regardless of what your financial goals are, it is important to have a plan in place so that you can achieve them.

Create A Budget 

It can be difficult to find extra money to invest. However, even without investing, it is important to set some money aside for an emergency fund.

The first step is to create a budget and track your expenses for a couple of months. This will help you to identify where you can cut back on spending and how much money you have available each month.

Once you have a better idea of your financial situation, you can start setting aside a little bit of money each month to build up your emergency fund. Remember, even small steps can make a big difference in the long run!

Heres is a free app for budgeting.

Ideas For Investing

Even if you’re living on a disability pension, there are still options available to help you get started. Investing is one of the smartest things you can do for your future, so don’t be afraid to give it a try.

Silver:

Silver is a Precious Metal, and it has been used as a form of currency for centuries. Unlike paper money, silver cannot be easily printed or created by a government. This makes it a scarce resource, which can help to protect its value over time. For people on a disability pension, buying silver coins can be a good way to invest their money and guard against inflation.

Cryptocurrency:

Investing in cryptocurrency can be a great way to secure your financial future, especially if you are on a pension. With cryptocurrency, you can buy $50 worth of your favourite coin each fortnight and hold onto it for long-term growth.

I use crypto.com because it is user-friendly and has good security and features. However, there are many different exchanges out there, so do some research to find the one that is right for you. Whatever exchange you use, make sure to never invest more than you can afford to lose. Cryptocurrency is a risky investment, but if you play your cards right, it can pay off big time.

Raiz & Up: 

There are a number of popular apps that allow users to invest their spare change, but which one is right for you? Raiz and Up are two of the most popular choices, but they each have their own pros and cons.

Up is a great choice for beginners, as it offers a low-risk way to get started with investing. However, it doesn’t offer the same potential for returns as other options.

Raiz, on the other hand, offers the potential for higher returns, but it also carries more risk. So which app is right for you? It ultimately depends on your goals and risk tolerance. If you’re just starting out, Up may be the better choice. But if you’re willing to take on more risk in pursuit of higher returns, Raiz could be a better option.

Savings Account:

Having an account that you can only access by contacting the bank may be a good idea for people who tend to spend money impulsively. This way, it would be harder for you to tap into your savings since you would have to go through the hassle of contacting the bank first.

This could help people with a disability or those who are trying to save up for something specific, like investing. However, it is important to remember that this type of account would not be suitable for everyone. For instance, if you have children who need to access your savings in an emergency, then this account would not be suitable.

It is also worth noting that some banks may charge fees for this type of account. Before opening one, be sure to do your research and compare fees from different banks to find the best deal.

Stocks & ETF’s: 

You may be able to grow your money by investing in an index fund or ETF. Index funds and ETFs are a type of investment that track a basket of underlying assets.

For example, the ASX200 tracks the 200 largest companies listed on the Australian Stock Exchange, while the S&P500 tracks the 500 largest companies listed on the stock exchanges in the United States.

By buying a share of an index fund or ETF, you’re effectively buying a small piece of each of the underlying assets. This can provide you with diversification, which can help to reduce risk. And because index funds and ETFs are often passively managed, they tend to have lower fees than actively managed funds.

Before you invest in an index fund or ETF, it’s important to do your research and understand how the underlying assets are performing. But if you’re looking for a simple way to grow your money, investing in an index fund or ETF could be a good option for you.

Stake is a cheap and easy investing platform for beginners, you will be able to be the ASX200 ETF and S&P500 ETF.

Frauds & Scams 

It is important to seek advice from professionals who can help you create a plan that meets your specific needs. In addition, it is important to be aware of frauds and scams that target people who are on disability pensions.

Often, these scams involve promises of quick profits or “guaranteed” returns. If you are considering any investment, be sure to ask questions and research the investment and the investment professional before making any decisions.

Beware of pressure to send money immediately, as this can be a sign of a scam. By being informed and taking precautions, you can help avoid becoming a victim of fraud.

Summary 

Investing might seem scary, especially if you don’t have a lot of experience, but starting with a few dollars is better than nothing. It’s important to have financial goals and a plan; you’re ten times more likely to achieve them if you do!

If you’re investing for retirement, you’ll want to start as soon as possible. The earlier you start, the more time your money has to grow. Even if you can only invest a small amount each month, it will add up over time.

Another benefit of investing early is that it gives you the potential to save on taxes. When you retire, you’ll likely be in a lower tax bracket than you are now, so your investments will be taxed at a lower rate.

And finally, remember that investing is not just for wealthy people. Everyone should be doing it, regardless of their income.

Even if you’re living on a disability pension, there are still options available to help you get started. Investing is one of the smartest things you can do for your future, so don’t be afraid to give it a try.

Alistair Rhind 🙂