Dear Adviser,

I am 25, with aspirations to gain wealth so I can retire by age 45. I am completely ignorant as to how. My short-term goal now is to own a house by age 27. Where can I start to gain enough money to make a down payment on a house in two years' time? I am currently employed and in a position to make monthly deposits of $20,000 to an investment plan.

I was thinking of a mutual fund but I don't know if I will accumulate enough funds for my deposit money ($500,000 at least) considering my time frame. What is the best way to go about all this and where should I invest my money to meet my long-term goal of retirement?

I am badly in need of a car to aid with my present situation. I have a part-time job which helps out a great deal and I really don't want to give it up. The car will definitely allow me to get more done, which in turn, means more income. I can only afford a deposit of $50,000.

- Nadz

PFA: You know what your goals are so you are not as ignorant about investing as you believe. You also have some idea about what you need to do to realise your goals. In time, though, you will learn that life is not a sprint.

You have laid out your goals - long-term and short-term ones - though you have made no mention of your medium-term goals. You have also indicated how much you can save to realise them but you have not said how much you expect them to cost.

Like so many young people today, you have made home ownership a short-term goal. Nothing is wrong with that if you have the capacity to achieve it.

Your other short-term goal, to own a car, is also popular with many persons of your age. I am not sure if peer pressure is what drives this ambition. You have not said how it would enhance your earning potential.

I am encouraged by your desire to learn how you can acquire wealth. Asking questions of persons you believe can guide you, particularly those who have succeeded in becoming wealthy, is a good first step.

Reading good financial litera-ture, following the news, attending seminars and observing what happens to your own investments are other ways. Patience and the ability to keep a level head are good traits to have.

financial position

You have said little about your financial position. Nonetheless, it does not seem $20,000 could generate enough to give you the deposit you would need in the two-year time frame you have set - which you also recognise is short.

You will need more than your $500,000 target, and remember your closing costs.

I doubt any mutual fund - as good as it is as an investment vehicle and one that I endorse - will give you the return required to meet your objective in that time frame even if you have the risk appetite to tolerate the more risky types.

In the meanwhile, remember to contribute to the National Housing Trust, which is a useful source of relatively low-cost mortgage funds. Considering the ability of real estate to appreciate, you do not have to aim for your first purchase to be your dream house.

As for the car, do you really need it now and can you afford it? How would borrowing to purchase it affect your ability to save and realise your other goals? Have you quantified how much you would benefit by acquiring it?

So, you want a long retirement and recognise retirement planning needs to start early. Before becoming fixated on that goal, consider whether you can build up sufficient resources to carry you through a pretty long retirement and how you would spend your time during that long phase of your life.

You potentially have a long life ahead. Educate yourself to improve your earning power. Empower yourself with more financial education. Follow an investment strategy that fits your personality. In 20 years, you may find that life may just be beginning.

For free counsel on money management and investment, email: finviser.jm@gmail.com.