George and Karen are both aged 47. They received an inheritance and invested a lump sum of $250,000. They want to continue building on that sum while they’re still working.
They’re considering investing a further $1,000 each month – on top of their lump sum – until they’re ready to retire, probably when they both turn 65. So they’re looking for an investment that offers both flexibility and moderate risk. They decide to invest in the Balanced Fund.
By the time they reach 65, their investment could have grown to $464,000 ($325,000 when adjusted for inflation). However, if they chose to make regular contributions of $1,000 each month on top of the lump sum, their total savings could have grown to $763,000 ($534,000 when adjusted for inflation).
Depending on their circumstances at retirement, George and Karen could continue to invest in the Balanced Fund or switch to a lower-risk fund, review their regular payment amount, perhaps start a regular withdrawal, or even think about a large withdrawal for a dream holiday.