Wealth Management
Effective wealth management helps one accumulate wealth and preserve it. Accumulating or preserving depends on one’s starting point in terms of age and financial standing. If young and just starting out it is recommended to invest in riskier assets such as equity portfolios. As you grow older and have some wealth accumulated you then fine tune your investment strategy to a more balanced portfolio to help reduce the risk.
Retirement Planning
During the initial years of retirement it is important to continue to be invested in portfolios that still outpace inflation without the risk of market downswings. This is because you are nolonger actively contributing to your savings but rather drawing down on them. Absolute Return portfolios are the ideal place for early-stage retirement because their return objectives match this goal without exposing you to downside risk. The risk associated with them however is that they may not necessarily beat inflation consistently even though this is expected in the medium term. Later into retirement, one needs more certainty to their investment return profile. This comes from income generating portfolios to help manage savings that will have reduced significantly.
Savings Plan
From time to time we need to save for a specific goal like school fees for example. This particular goal needs more certainty to the required investment returns. A fixed income portfolio like a Bond Fund allows you this certainty if held diligently for the medium to long term. Please see this calculator below.