Originally Posted by
SBQ
Yes the past page has been riddled with my comments and I must not forget we're only dealing with $10K. However, all models like in Kiwi Saver work out at the end with much larger figures for retirement (with their fancy window dressing). So, sooner or later the $50K threshold will hit ; and then where? What if another $10K or $20K cash were to come along?
I'm not sure if 'age' has been mentioned but it seems the general consensus is if your young (in 20s) and looking to invest, then going with the aggressive return portfolio would be best. But equally as aggressive is to simply hold on to the cash and wait for the next global stock market crash. Sure this is a timing game and as I said before (in different posts), no one has made $ panicking and when the market crashes, you don't see people around you flushed with cash. Human fear always prevails and irrational thinking comes into play. Does the young investor have the tolerance in a major share market crash? I remember back during the dot.com crash, almost all my friends had rushed to cash in their retirement portfolio despite the advice by their financial advisers to not do so. It's bad when from age 20 - 30, they spent all those year for contribution to only witness losing 50% of their portfolio... then they see they lose another 10%.. so they panic with fear to their financial adviser saying their portfolio could lose another 20 or 30% which would net them with nothing.