Keep risk in mind when exploring retirement options

Published Apr 24, 1996

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The closer you are to retirement and the less you have in the bank, the greater the temptation to go for high risk, high return investments.

If you are tempted - think again.

Wessel Vermaas, senior manager: financial advisory services at Metropolitan Life says before you make up your mind explore all the options available, keeping risk in mind.

He classifies risk in three segments:

* Low Risk: Bank fixed deposits and call deposits; government bonds; and interest related products;

* Medium Risk: (Shares) Equity-linked unit trusts; property unit trusts; equity-linked insurance products, such as retirement annuities and endowment products; residential property; and

* High Risk: Shares, containers, gold, and collectables.

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