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>* there is no better place to put your money* I'm not sure I buy into that in the slightest, alternative asset classes exist for the very purpose of allowing
by Ntrails 11y ago
>* there is no better place to put your money*
I'm not sure I buy into that in the slightest, alternative asset classes exist for the very purpose of allowing diversity when market returns are poor. Some of them are rough to access as an individual, but others are not.
The real kicker is that the absolute size of a retirement pot is utterly meaningless without reference to the interest and inflation rates during retirement. Let alone what the mortality tables look like when you get there.
You're going to live longer, and so you're going to need to retire later with more money than your predecessors. That means saving towards it from the moment you start work, and ensuring that you access as many different return drivers as possible - even at the cost of some fees. Yes I'm a walking talking believer in DGFs.
- darawk 11y agoNo, the point of the article is that all asset classes across the board will experience lower than normal returns. Diversification will not help you. Whether or not its thrust is correct is hard to say, but that appears to be their thesis.
- kspaans 11y agoI only see bonds, and equities specifically mentioned.
- Ntrails 11y agoIndeed. There are whole investment industries built up around property, reinsurance etc etc because they do diversify. The risks are relatively uncorrelated, so the returns are too. Honestly, this is a PR/opinion piece designed to get coverage - and that's fine. I'll bet you good money that there are opposing views on the 20 year outlook from different investment experts though.