When planning an investment strategy it is important that the strategy matches the needs and aspirations of the investor. A system that is successfully used for one person may not be suitable for another. There are various reasons for this, including ethical considerations and how much risk an investor is willing to take.
Investment should always be a long-term plan; when planning for retirement the most important consideration is to make funds last as long as possible while still providing a steady income.
Since the global economic crisis started in 2008, investment strategies have had to be radically changed. We live in a world where interest rates are at an all-time low and the stock markets are at the most volatile in decades. Gone are the days when it was possible to place a large portion of funds into cash and bonds and still receive a good return. Today, an investment portfolio with a large percentage of the investment in cash and bonds will be at risk from making no gains at all. In fact, too much cash and the investment will lose value over time as inflation outpaces interest rates.