NewsBite

HTTP/1.1 200 OKServer: nginxContent-Type: text/html; charset=utf-8X-Powered-By: WordPress VIP Host-Header: a9130478a60e5f9135f765b23f26593bX-Content-Type-Options: nosniffX-XSS-Protection: 1x-rq: syd3 177 249 80Cache-Control: must-revalidate, max-age=300Expires: Tue, 29 Jul 2025 19:50:42 GMTDate: Tue, 29 Jul 2025 19:45:42 GMTTransfer-Encoding:  chunkedConnection: keep-aliveConnection: Transfer-EncodingSet-Cookie: nk=d4fd537ff29480321d64cc0d8815e26d; expires=Wed, 29-Jul-2026 19:45:42 GMT; domain=.theaustralian.com.au; secure; SameSite=NoneSet-Cookie: theAusShortlist=DELETEME; expires=Thu, 01-Aug-2024 12:40:38 GMT; secure; HttpOnly; SameSite=StrictStrict-Transport-Security: max-age=600 ; includeSubDomainsContent-Security-Policy-Report-Only: frame-ancestors 'self'; report-uri https://www.theaustralian.com.au/csp-reportsContent-Security-Policy: block-all-mixed-content; style-src https: 'unsafe-inline'; script-src https: blob: 'unsafe-inline' 'unsafe-eval'; img-src https: data:; frame-src https:;BlaizeHappened: trueX-ARRRG5: /blaize/decision-engine?path=https%3a%2f%2fwww.theaustralian.com.au%2fweb-stories%2ffree%2fthe-australian%2fmaking-the-most-of-your-investments-during-2022%3fnk%3dd4fd537ff29480321d64cc0d8815e26d-1711775422&blaizehost=v4-news-au-theaustralian.cdn.zephr.com&content_id=&session=d4fd537ff29480321d64cc0d8815e26dX-ARRRG4: https://www.heraldsun.com.au/X-PathQS: TRUEVary: User-AgentAkamai-GRN: 0.6c4e6168.1753818342.171c478a
Words: James KirbyProducer: Louise Starkey
Making the most of your investments during 2022
As an investor, you'd like to think that every year you get better. In 2022, the ability to navigate investment waters may well be much more important than the year just gone.
Here are five things you might do to optimise your investments in the next 12 months — but don't expect another bumper year like the one we just had.
The rule for a balanced portfolio has always been your age should represent the percentage of assets you should have in defensive investments.
At 30 you should have 30 per cent in defensive assets, at 90 you should have 90 per cent.
We are all living longer and investment advisers are yet to adjust their settings.
Find the balance
Inflation is now baked into the global economy, especially in the US.
In Australia, there are the first signs of wage inflation, the ultimate confirmation of an upsurge in a development that can eat away at investor earnings.
Share investing has proved over long periods of time to be an inflation hedge — especially stocks that are able to control their own prices, such as companies that dominate an industry.
Inflation-proof your portfolio
Putting money in bank deposits remains an utterly miserable investment option, where Australians ­effectively lose money due to ­inflation.
The RBA said it would not move official rates until 2023, but there is every likelihood it will be forced to lift in 2022.
The returns from your cash deposits will still be hopeless, but not quite as hopeless as in 2021.
Avoid deposit depression
Until cash fully recovers to the point where it at least beats inflation, term deposit alternatives need to be kept in mind.
While Australians should avoid opaque high-yield funds, there can be good returns from well-selected, secured mortgage funds and debt funds.
Explore cash alternatives
Growth stocks were all the rage in 2021 — think Afterpay and Kogan — but many of those finished lower for the year.
In 2022, rising rates and continuing Covid threats will almost certainly accelerate the move back towards defensive stocks. Watch banks, utilities and even telcos.
Explore cash alternatives
Swipe up for more ideas on how to optimise your investments during 2022.																															

Original URL: https://www.theaustralian.com.au/web-stories/free/the-australian/making-the-most-of-your-investments-during-2022