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
Sign in to add a comment
Comments (4)
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
Reply
1 like
View 1 reply
The Barefoot Investor always states that you should not invest your house deposit in the share market as it is susceptible to the fluctuations of the market. If we were to have a recession this year you could see your savings lose up to 50% or more in the stock market. Not what you want when house prices also drop. I would recommend either UBank or Macquarie saving accounts as they give pretty good interest rates. It’s where we have our savings.
Hope this helps.
Reply
1 like
View 1 reply
Related posts
Investing Strategy
What happens if, in 30 years when I have hundreds of thousands or even millions of dollars in shares, nobody wants to buy them?
Hi there! What happens if, in 30 years when I have hundreds of thousands or even millions of dollars in shares, nobody w...
Investing Strategy
I am seeing a fairly constant downward movement across all my shares, bar one or two. Is there anything I can be doing differently.
Hello, I am still very new to investing and only working with small amounts. I have tried to be diverse with my shares a...
Investing Strategy
Difference between VDHG and VAS?
Hi Brains Trust! What's the difference between VDHG and VAS? I understand they are setup quite differently. But to a la...