Which of the following statements about asset allocation are TRUE:

1. If you have savings set aside for a new car that you expect to purchase 2 years from now, it is appropriate to invest these savings into shares because the expected returns are higher than investing the funds in a savings account.
2. There are numerous factors that need to be considered when formulating an asset allocation, including investment time horizon, risk profile, life stage, investment goals and the level of financial literacy and experience.