A 68-year-old Fin24 user wants to know if he should switch his low risk investment to an aggressive alternative. He writes:
My wife and I are both 68; we have R1 800 000 invested with Alan Gray in low risk investments.
Should we switch to a more aggressive alternative?
Daryl Coker, partner: wealth advisory services at Citadel, responds:
This is a very open-ended question and the entire portfolio needs to be examined before a meaningful comment can be made.
There are a number of concepts to consider
when investing money which would make a difference to the underlying investment
choice. These include:
1. What other assets are in the portfolio?
2. Do you need to draw an income from this money? If so, how much would need to be drawn per annum?
3. Is this discretionary or non-discretionary (retirement) money?4. What is your feeling towards the volatility of your investment?
5. If you are drawing from this investment, how long do you expect it to last?
These considerations as well as your aspirations need to be addressed before you make a call on the underlying asset class.
- Fin24
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