I’m a young working professional with a limited investment portfolio. I would like to diversify my investments to achieve short-term goals (like buying my first house) and long-term goals (preparing for retirement). How do I go about developing an investment diversification plan that aligns with my risk tolerance and financial objectives?
Marzél Swart, wealth adviser at PSG Wealth, Pretoria East:
To differentiate between short-term and long-term goals is a good place to start. It is always important to keep the objectives separate to prevent your emotions from getting in the way.
For the short-term goals, I’d recommend that you consider an interest-bearing investment solution which is not as volatile as exposure to equities.
Currently, rates on money market accounts are around 7 to 8% a year, which could be a good place to start. There are no fluctuations in the capital value and the funds are readily available when