Retirement Plan


  • Assessing your individual financial situation and retirement goals is the first step in setting up your portfolio. Critical in this stage is the TIME you have for your investment to accumulate interest. Investment time is calculated by subtracting your current age from expected retirement age.
  • Another factor to take into consideration is your personality and your ability to take risk (risk tolerance). Are you an individual who is willing to risk money for the possibility of a greater return?
  • Ascertaining your current situation, future needs for capital and your ability to take risk will determine how your investments should be allocated among different asset types. The possibility of greater return comes at the cost of higher risks.
  • Generally, the higher an individual risk appetite, the more aggressive his/her portfolio would be and they would allocate a larger proportion to equities and less to bonds and other fixed income securities. Conversely, the lower your risk tolerance level, the more conservative your portfolio would be.
  • Once you have identified the appropriate asset type, the next step is simply to divide your funds between the different asset classes: shares, bonds, deposits, real estate, etc.
  • It is important to note that some factors such as your financial situation, future needs, risk tolerance (depending on age), market conditions are likely to vary over time. Such changes would necessitate an analysis and a rebalancing of your portfolio periodically.