Investing for a better night’s sleep

Often, because we don’t know what we don’t know, investing is seen as highly risky and speculative – reserved for those willing to ride the highs and lows of the stock market - but not all investing is the same.

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Instead of feeling exposed to market swings, there are lower-volatility investments which can help build a strong financial foundation, making it easier to sleep at night. After all, it’s reassuring to know that your money is working for you and you’re moving closer towards your personal goals.

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Yet, many people don’t hear about these options as often as they do about shares, crypto or typically higher-risk asset classes. We believe that’s because the world glorifies fast gains, leaving the more stable, sustainable choices in the background.

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Here are some investment options available right now in Australia which are generally considered to have a lower risk profile, while still generating returns - and might be worth further investigation for those seeking less volatility and a steady income:

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1. Fixed-Income Bonds:

With capital preservation as a focus, Funds are often diversified, so whilst one asset is down, another is up, generally bringing more stable returns overall. Bonds can include government-backed securities, corporate debt and mortgage-backed securities. While risks like interest rate rises and defaults exist, fixed income investments are generally considered less volatile than other asset classes like stocks.

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2. Compounding Returns:

Compounding returns are one of the most powerful tools for wealth creation, allowing you to earn returns not just on your original investment, but also on the returns already accumulated. We often hear from our own Blossom customers how reassuring and refreshing it is to see their balance grow daily, creating a sense of progress without constant stress of market turbulence.

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3. Term Deposits:

Term deposits have been a tried- and- true option for investors for over a hundred years, and are a staple on the Australian financial landscape. They provide a fixed interest rate over a set period (ranging from months to years), and most major Australian banks currently offer them.

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4. Annuities:

‍Annuities provide a guaranteed income stream, which can be particularly appealing to retirees looking for low-risk, steady returns. Annuities in Australia can provide a predictable income for a set period or even for life, offering stability for those seeking steady returns.

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Investing doesn’t have to be all or nothing, nor does it need to feel like a gamble. What we love most about Blossom is that it offers a sense of stability while helping savers stay on track with their goals. It’s about peace of mind and steady progress, and knowing that smart financial decisions don’t always require taking big risks.

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Online disclaimer:

Nothing in this article should be construed as being personal financial advice. It is general in nature only and has not taken into account your particular circumstances, objectives, financial situation or needs. You should consider whether the information, strategies and investments are appropriate and suitable for you or seek personal advice from a licensed financial planner before making an investment decision. Past performance does not indicate future performance. All investments carry risk. BlossomApp Pty Ltd (ABN 74 644 216 151) is a C.A.R. (No. 001284228) of Gleneagle Asset Management Limited (AFSL 226199). ACM co-owner Alex Waislitz has a stake in a company that provides services to Blossom. ACM is the publisher of this article. Please consider the PDS and TMD available at www.blossomapp.com to ensure the product suits your needs.

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