Hey Raskal,
Before you even think about which portfolio to follow, pause and ask yourself the most important question: why am I doing this?
Sounds simple, but most people skip straight to “what should I invest in?” without ever working out what they’re investing for.
Step 1: Start with your “why”
Your “why” sets the foundation. Ask yourself:
- What’s the end goal? (Financial freedom? Retirement? A deposit? Passive income?)
- How far away is that goal?
- How much can I realistically contribute along the way?
- What trade-offs am I willing to make (less risk, more growth, more income)?
Once you’ve got that pinned down, you’ll be in a much better place to think about timeframe.
And you know what, it’s really common for people to not have an exact why. I talk with people all the time who don’t have one reason they are investing but multiple or they won’t really know until they get there.
For instance, you might not know if you want to retire early, or work 3 days instead of 5 but you do know if you don’t start investing now you won’t have those options in the future. So, you’re working towards what I call the nest egg of optionality.
Step 2: Match your timeframe
Every Rask model portfolio has a recommended minimum investment timeframe.
That’s because time is your safety net:
- The longer your timeframe, the more you can afford to be in growth assets (shares, property, infrastructure) — because you’ve got time to ride out the bumps.
- The shorter your timeframe, the more defensives you’ll want (cash, bonds, credit) — because you may not have time to recover from a downturn.
Example:
- Sophie is 34 and wants to retire at 60 — 26 years away. She can lean growth-heavy, because even if markets fall tomorrow, she has decades to recover.
- James is 58 and wants to retire at 63 — just 5 years away. He needs more defensives, because a 20% market fall now could derail his whole plan.
Step 3: Know yourself (and volatility)
Here’s the second question most people forget to ask: how will I respond when markets fall?
Because they will fall. Sometimes by 10%, sometimes by 30% or more.
- Will you lose sleep?
- Will you panic and sell at the bottom?
- Will you lock in losses and avoid investing for years?
If the answer is yes, then even if your timeframe is long, you may actually be better off in a more conservative portfolio. Why? Because the worst thing you can do is interrupt your compounding.
As Charlie Munger (Warren Buffett’s right-hand man) put it: “The first rule of compounding is to never interrupt it unnecessarily.”
That means taking the ups and the downs. If a more conservative portfolio helps you stay invested through the bad times, it could be far better for you in the long run than bailing out of a growth-heavy strategy at the wrong time.
Step 4: Do the boring things, consistently
Jumping into the market is easy. Staying invested for ten years is the hard part.
The truth is, successful investing is more about consistency than brilliance. That means:
- Setting a plan and sticking to it.
- Ignoring the shiny new ETFs or hot ideas of the week.
- Dollar-cost averaging into your portfolio, month after month.
- Not getting bogged down in tiny choices (e.g. which of two near-identical ETFs to start with).
Boring doesn’t mean ineffective. Boring is what builds wealth.
Step 5: Focus on decisions, not outcomes
Author and decision-making expert Annie Duke calls this “resulting”. It’s the mistake of judging the quality of your decision by the short-term outcome, instead of the process.
Markets go up and down all the time. A good decision can look bad in the short term if markets fall the next day. A bad decision can look great if you happen to get lucky.
Instead of obsessing over daily performance, measure yourself by the quality of your process:
- Did I stick to my plan?
- Was the decision aligned with my goals and timeframe?
- Did I control what I could control (savings rate, fees, diversification)?
Focus on decision quality over market noise. That’s how you build the resilience to stay the course when others are panicking.
And, do yourself a favour, write your plan down and save it somewhere. It just needs to be a few dot points. Keep it simple:
- “How much can I start with? And how much can I sustainably add?”
- “What portfolio aligns with my goals?”
- “When the market drops I’m going….”
This is a form of pre-commitment and it is a great mindset tool to help you stick to your plan.
General rules of thumb
- Long timeframe (10+ years): More growth assets — if you can stomach volatility.
- Medium timeframe (5–10 years): A balanced mix of growth + defensives.
- Short timeframe (<5 years): More defensives, focus on capital protection.
- Any timeframe: If you panic easily, consider leaning more conservative to protect your compounding.
- All timeframes: Stick to your plan, dollar-cost average, and judge decisions by process, not outcomes.
The bottom line
Choosing a model portfolio isn’t about chasing the hottest returns. It’s about matching your portfolio to your “why”, your timeframe, your ability to handle volatility, and your discipline to stay the course.
With Rask, you’ll find our model portfolios with recommended minimum timeframes — from conservative mixes to growth-heavy strategies. Pick the one that matches your journey, and you’ll be investing with purpose, not guesswork.
Additional reading
How to follow a model portfolio (a step-by-step guide)
4 Steps to dollar-cost average into an ETF portfolio
Dollar-cost average or lump sum investing: Which is best for ETFs?
4 Steps to rebalancing your ETF portfolio like a pro
General advice only — it doesn’t take into account your personal objectives, financial situation, or needs. Please read the PDS and TMD before making investment decisions.
