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

21 July, 2022

Question by Tracy

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.

Answered by Bodie Dove

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

Answered by

Bodie Dove

Chartered Financial Planner

I’ve always enjoyed problem solving and I take a personal approach to finding solutions that provide a genuine, positive change to my clients. I am passionate about attaining the best approach to help each client understand and then take control of their finances so that they can create a plan to fund their future goals. I like to think of myself as the satnav helping them to get from point A to Z on their financial journey.

The Financial services industry is a very daunting area for a lot of people and it’s my job as an adviser to tailor my advice and make it easy to understand for every client. I also currently run financial education workshops in local schools to help the next generation to better understand financial matters and breakdown some of the jargon.

Outside of work, my life revolves around my wife and daughters, whether it’s doing the school run, paddle boarding or joining in with their taekwondo lessons I love being a hands on dad.

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