Whenever someone asks me how much I should invest and what portfolio allocation should I choose, I would usually reply back with what do you actually want to achieve with this investment? Based on that, I will plan accordingly.

The key thing to note is the shorter the time horizon, the lower the risk appetite should be and more allocation will be towards bonds. The longer the time horizon, it can be a higher allocation towards equity risks.

So one of the things we do is to diversify in terms of time frames for the money required.

Even if someone is going to be retiring in the next 1-2years, it does not make sense to put all into cash or primarily into bonds.

There will be some funds a person will need within the next 1-3yrs and those should be in cash or fixed deposits..

And there will be some funds that you will not need till 3-5yrs later, 5-9yrs later, 10yrs later…

For example,

3-5yrs is for a general allocation of 40E/60B..

5-9yrs is for a general allocation of 60E/40B..

10yrs and above is for a general allocation of 80E/20B..

What is most important is to identify your objectives and be clear about it together with you and we can structure the planning for you and journey with you through the period of time to get you to your goals clearly, confidently and in a simplified way of strategic planning with less speculation and more wealth.