Where is best to invest any future contributions bearing in mind my retirement time frame?

Hi, I’m aiming to retire in 5 years. Currently have roughly 60/40 portfolio in stocks and bonds. Roughly 60% of portfolio is in managed fund and remainder in stock and bond funds. Where is best to invest any future contributions bearing in mind my time frame? i.e all in managed fund, stocks or bonds or some in each.

Hi Tracy

Thank you for your enquiry.

It sounds like you understand the value of diversification and are implementing this approach with your investments. However, without knowing more about you and your individual circumstances it isn't possible to give you advice on what the best options are for you personally but I am happy to provide you with my initial observations.

When you retire in 5 years, I am assuming you will need to access your pensions or savings to support your income requirements. Again assuming that this will be on a phased withdrawal basis and that a large proportion of your funds will remain invested, your time horizon for your investments may not be as short as you may think. I would start by asking the following questions:

How much income do you need?
Has your attitude to risk changed?
What is your capacity for loss?
How much do you really need to change your investment approach?

I hope that this helps.

Bodie