INVESTING STRATEGY
Change in financial goals
Hi pearlers, I started using pearler when my goal was for long term investing to create financial freedom when I retire. I was single at this point and had decided getting in the housing market was out of my reach. I am now in a serious relationship and my financial goal has changed to saving for a house deposit. My question is: Is investing in ETFs over 5 years worth it to build wealth for a deposit or am I better of using a term deposit? I’ve read that really you have to contribute for over 10 years to really start seeing your wealth grow. Please be kind! I am very new to this and was never taught financial literacy. Thanks xx
4 Comments
almost 2 years ago
Hey Liz.
This is a really good question. It’s also tricky, because while 5 years is a decent timeframe it certainly doesn’t guarantee a decent result.
For any money that is needed in 5 years time, I think there is a very strong case to be made for not putting that money into the market and instead sticking with lower risk options like a term deposit or high interest savings account.
It also depends on how flexible that timeframe is though. If you did happen to choose shares vs term deposit, and the market took a tumble towards the end, would you be willing to wait until it recovered, or would you prefer your goal to not be disrupted by the market? Really important to think about the possible downside and whether it seems worth it.
Hope that’s useful :)
Dave
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