Streaming issues? Report here
CapeTalk logo 2017 1500 x 1500 CapeTalk logo 2017 1500 x 1500
Best of CapeTalk
00:00 - 03:00

Up Next: Weekend Early
See full line-up
Best of CapeTalk
00:00 - 03:00
MyMoney Online

How risky are your investments? It depends on how much time you have

6 October 2020 2:56 PM

How much "risk" you should take on depends on your investment timeframe, says Certified Financial Planner Paul Roelofse.

RELATED ARTICLE: Super-safe investment offers sky-high interest rates (10%) – it’s not a scam!

If you require a higher return on your investments than you would get at a bank, then you need to take on more risk.

When most people talk about “risk”, they’re referring to “volatility” – the potential of your investment value to fluctuate over a period of time.

Time tends to smooth out the wild swings, so investing in “risky” shares requires a longer commitment.

Depending on how long you’re planning to remain invested, here’s where to save (according to Certified Financial Planner Paul Roelofse):

Less than five years – choose a low-risk investment

These investments won’t shoot the lights out, but they provide more certain returns.

Between five and 10 years – choose a medium-risk investment

These investments do fluctuate – but not as wildly as the next category – and need five to ten years to smooth out returns.

  • Property exchange-traded funds

  • Balanced funds – unit trusts

More than 10 years – choose a high-risk investment

These investments remain your best bet for high returns that comfortably beat inflation. They fluctuate wildly in value over short terms, so you need to take a long view.

  • Equity unit trust and exchange-traded funds

  • Shares – direct portfolios

Ideally, you need to invest over all these time periods to provide for the various savings needs in your life, says Roelofse.

Your investments should be aligned to your appetite for risk.

For more detail, listen to the interview in the audio below.

6 October 2020 2:56 PM

More from MyMoney Online

JSE Johannesburg Stock Exchange 123rf 123rfbusiness

Naspers-owned Prosus (owner of Tencent) starts JSE's largest share buyback ever

23 November 2020 7:35 PM

The Money Show’s Bruce Whitfield interviews Basil Sgourdos, CFO at Naspers.

Share this:
Read More arrow_forward


Pepkor Holdings profits fall 34% but gains 'significant' market share

23 November 2020 7:28 PM

The Money Show’s Bruce Whitfield interviews Leon Lourens, CEO at Pepkor Holdings.

Share this:
Read More arrow_forward


Netcare profits hit by Covid-19. Embarks on a job preservation strategy

23 November 2020 7:05 PM

The Money Show’s Bruce Whitfield interviews Dr Richard Friedland, CEO at Netcare.

Share this:
Read More arrow_forward

Suzuki Celerio 123rf

[REVIEW] Best new 'cheap' small car in South Africa

18 November 2020 3:12 PM

A listener asks petrolhead Ciro de Siena which small car (e.g. VW Up, Suzuki Celerio, Toyota Aygo) gets his stamp of approval.

Share this:
Read More arrow_forward

Poor elderly woman counting money retirement 123rfpersonalfinance 123rf

Make your retirement savings last longer

13 November 2020 11:34 AM

Personal finance advisor Warren Ingram on ensuring you don’t run out of money before you run out of life.

Share this:
Read More arrow_forward

happy homeowner first-time property 123rf 123rfbusiness

Renting vs buying property – it’s an interesting calculation right now

12 November 2020 11:56 AM

Banks are hungry for 1st-time buyers right now and interest rates have never been this low, says property entrepreneur Grant Smee.

Share this:
Read More arrow_forward


We pay tax refunds within 72 hours - Sars

12 November 2020 10:38 AM

The deadline to submit is approaching fast. "Over 70% of taxpayers have already filed their returns," says Marcia Ujobolo of Sars.

Share this:
Read More arrow_forward


New car sales in South Africa increases for the 4th month in a row

11 November 2020 2:33 PM

In the market for a new car? There are deals galore, says motoring journalist Ciro de Siena.

Share this:
Read More arrow_forward


Renting vs buying property pros and cons, and how to move from renting to buying

11 November 2020 12:02 PM

A R1 million home loan costs about R7800 per month right now. What is your rent? What are the pros and cons of buying?

Share this:
Read More arrow_forward

Black Friday shoppers shopping consumerism 123rfbusiness 123rflifestyle 123rf

Black Friday: Tips on ACTUALLY saving money (versus 'saving' yourself broke)

11 November 2020 10:35 AM

Even banks and insurers are in on the consumerist orgy, says Certified Financial Planner (CFP) Gerald Mwandiambira.

Share this:
Read More arrow_forward