A financial plan is a document that outlines where you stand with the money you currently have. It has clearly defined long-term monetary goals and the strategies and steps you need to take to achieve them. Financial plans can address anything from building an investment plan and establishing your emergency savings, to consolidating debt and opening a bank. Everyones financial circumstances (and journey) are different; which means your financial plan will also be unique for your situation. Regardless of your life stage, income, investments or debt level, you do need to take an honest, comprehensive look at your finances to get a clear picture of where you are and where youre going.

Specifically, for those who can afford or are willing to take some risk, there are many reasons why investing in property continues to be a popular choice and is often seen as one of the best ways to invest money in Australia. Daniel and Anna are looking to expand their investment portfolio which currently includes $80,000 in fixed interest securities and $20,000 in Australian shares. After meeting with them, you have determined that they are both balanced investors.

a) What advice would you provide to Daniel and Anna as to the suitability of property investment as part of their portfolio?

b) How would you suggest a balanced investor invest in property and allocate their securities? What other factors would need to be considered?