Question: I have just subscribed to the Switzer Super Report and I am looking to build a portfolio with 10 years to my retirement in mind. Should I try to stick to those stocks in your portfolio? Not too sure where to start, especially in this current market environment with what to dive into and when.
Answer (By Paul Rickard): The portfolios are a good place to start – but they are not the total picture, as there is no exposure to small cap stocks. Also, these are (obviously) Australian shares only – you need to consider what other assets you have, and if the mix is right?
We have two model portfolios – one more income focused, the other growth oriented. Although you have 10 years to retirement, you will need to decide which is more in keeping with your investment objectives and your appetite for risk. On paper, if you can take a longer-term view, then the growth portfolio may be more suited.
In terms of timing, you are never going to buy at the bottom – or always sell at the top. My advice would be to start soon – history shows that time in the market is more important than timing.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.