What’s an investment timeline?

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Time has a huge impact on the return of your investments. Time impact is probably more than you think when it comes to the return on your investments.

Short term:

If you only invest for a very short term (less than 1 year), you can expect a wide range of potential outcomes by the time you want to withdraw your funds. This is a reality no matter which portfolio you have decided to invest in.

Long term:

If you invest for a long term (Minimum 10 years), your chances are much higher to make a higher return – even with risky portfolios.

Here are some guidelines for thinking about timelines and risk:

When do you need the funds? Advice
Between 3 to 5 years A less risky approach will protect you from a significant short-term loss.
5 - 10 years You can afford to take more risks. You have more time to recover from any short-term losses.
More than 10 years To maximize your returns, consider a higher risk approach. You have enough time to recover from short-term losses.

What long-term return can I expect?

The most common question is how much I can earn or what will be my return after a period of time while investing according to an asset allocation ETF.

Based on historical estimates, our diversified portfolio of ETFs is expected to generate 4-10% depending on how much risk you take.

As you know, since no one can predict the market, we would like to highlight the importance of certain key points when you invest:

Cost: Keep your cost low. Traditional investment advisors’ charges are so high, so make sure to pay attention to the cost and the hidden fees. Wealthface charges are the lowest in the market and we do not have any hidden fees. Visit our pricing page to know more about our subscription and pricing model.

Time: invest for the long term. Stick to your term plan between 5 to 10 years.

Risk: Do not time the market. Wealthface experts will help you to build your own investment portfolio to achieve your financial goals. Click here to schedule a meeting.

If you are not sure what’s your risk level- get a free portfolio recommendation by registering here.

Risk and investment timelines

What is a “know your client” questionnaire for (KYC)?

When you sign up for a Wealthface account, we’ll ask you a series of questions about your savings goals, your investing time horizon, and your personal tolerance for risk.Your answers will help us to get more information to recommend a portfolio that best suits your financial needs.

Wealthface’s goal is to invest your funds in a way that maximizes your return, while protecting your capital by the time you need to access your funds.

There are two main things to consider when evaluating your recommended portfolio

  • Your risk appetite
  • The time to access your funds

Note: You can always update your portfolio and risk profile after you’ve set up your account.

Factors To Bear In Mind

It’s important to remember that while ETFs are cheaper than mutual funds and other types of investments, they aren’t free.

If you really wanted to pay less money on your portfolio, you could consider buying all of those individual stocks and bonds which the ETF invests in. While this could technically save you a bit of money, we’d suggest that the time and effort it would involve would be better put into further growing your wealth!

On top of this, you’ll need to bear in mind that there will be a small commission fee whenever you’re buying and selling units, and the size of that fee depends on the broker and their terms and conditions.

When dealing with asset allocator funds, or in any diversified funds, you have somewhat smaller chances for big gains than you would if you were to buy individual stock. But we believe in minimizing risk alongside maximizing returns, so while this might be true, the chances of losing your investment is also considerably smaller.

Lastly, do remember that there are minimum commission fees for buying and selling units. These will depend on the broker used, but WealthFace takes the stress out of the process every step of the way.

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