*This content is brought to you by Brenthurst Wealth 

By Leslie Greyling* 

How confident are you that, when the time comes, you’ll be able to shut your office door for the last time and step into a life of comfortable retirement? The reality is that very few South Africans can say with full confidence that their future is well taken care of.

Leslie Greyling

Sadly, being unprepared can cause some people to panic and put their money into a pyramid scheme or unregulated investments that promises great returns but ends up being yet another scam targeting the desperate.

Anyone who’s fallen foul of these scams can tell you how difficult it is to recover from a big financial setback late in your work life, especially in retirement.

All too often, at the exact time you should be dialling back your exposure to risk you’re suddenly going all in. And if that bet doesn’t pay off, you’re in an even worse position than before.

Know your exposure

Which is why it’s so important to understand what level of risk you are willing to accept and can afford to take at different life stages.

Source: Brenthurst Wealth Investment Committee

Typically, younger investors can adopt a more aggressive stance as they have a longer timeline to recover from market fluctuations. They also have the benefit of long-term exposure to growth assets.

An example of a portfolio construction for someone in this position would be to hold 50% – 70% in high-risk, high-return investments, 30% – 40% in…

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