If you can afford to lose some money and if your investment horizon is quite long, you can invest in some more risky investments, which may provide a higher return, like stocks for example. Higher-risk investments tend to have prices that move up and down more often and it may take a longer time for the financial rewards to materialise.
However, if your investment horizon is quite short or if your target date is very specific, you should focus on investment products that provide you with regular income, like bank deposits or investments that hold bonds.
Of course, the reality is that you will probably have both short and long term financial goals and that these goals will change as you move through various stages of life. Therefore you will likely adopt a mixed approach by investing some of your money in safer, lower-risk investments with a focus on capital preservation, and by allocating some money you don’t need immediately to riskier investments in order to achieve your longer term financial goals.
The art of financial planning is to find the right mix and you should not hesitate to seek help from financial advisers. These qualified professionals are trained in understanding your investor profile and financial needs, as well as drawing up financial plans and recommending where and how to invest your money.
