SFA045 Preparing for retirement in uncertain times (710 words)

This article describes options for building wealth before retirement, particularly in this volatile economic environment. It starts with the relatively safer but low yielding options then explains three alternatives which may offer potentially higher returns.

As most long-term investors know, investment markets have their ups and downs. The downs are usually associated with periods of uncertainty, perhaps due to political or economic factors, or even natural disasters. Uncertainty leads to volatility – more extreme movements in asset prices – which can have a big impact on portfolio values. This can be of particular concern if you are close to retirement and preparing for your last payday. So what can you do about it?