Why Invest


The decision to invest is influenced by a number of factors, such as age, risk profile, investment objectives, life stage and expected returns.

Investment Planning in Your 20′s

There is no substitute for getting off to a good start, and small amounts early can become large amounts given enough time. Saving a minimum of  10% of your gross income into a tax-advantaged account is a great start. Another way of doing this is through unit trusts, using a regular savings plan. The best way to stay disciplined early in your life is to set up an automatic deposit of these funds.  The advantage of the regular savings plan is that as a long term investment tool, the fluctuations are evened out over time.

In your 20s maximum exposure to growth assets such a shares and offshore investments is recommended. A fund such as the BIFM Unit Trusts Offshore Equity fund would be ideal for an investor with a long-term investment horizon.

Investment Planning in Your 30′s

If you followed a plan for your 20′s, you should be off to a good start and now your earning potential has increased. You are probably looking into or have already purchased a home and have started a family by this point, so expenses will be increasing as well.

If you didn’t follow a plan in your 20′s, you may need to be a little more aggressive in your saving to make up for lost time. Fortunately, time is still on your side, so with a disciplined approach you should be able to make up for lost growth. In this case it might help to consider the BIFM Unit Trusts Offshore Balanced Fund.

Investment Planning in Your 40′s

If you started your retirement planning early, your portfolio should be looking pretty good and solid at this point. If you neglected retirement planning early, it is time to get serious. The loss of those years of savings and growth of your investment portfolio are going to take a dedicated effort to overcome. It might be worth your while to invest in a well diversified fund such as the BIFM Unit Trusts Balanced Prudential Fund, which might give you the injection you need to raise more capital and diversify your portfolio.

You may need to consider reducing expenses drastically, and making a concerted effort to catch-up. You are still relatively young, and have some of your best earning years ahead, so it is not too late, though you cannot of course lose any more time.

Investment Planning in Your 50′s

You reached your peak earning time, and if you have been following a plan, you are well on your way. Your biggest expenses should be behind you at this point (house, education, raising your family). If you’ve neglected your retirement planning up to this point, there is no time left to waste. You need to make whatever lifestyle adjustments necessary to make up for lost time.

You have 15 years left before retirement age, and you need to make the most of every year at this point. This is your last chance to “save” for retirement, and do not want to miss this window. It might also be beneficial to consider the BIFM Unit Trusts Money Market Fund, which pays a monthly income and can help those opting for an early retirement. It will preserve your capital and provide you with a lower risk solution.