Change in financial goals

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