Friday, March 25, 2016

Considerations for Retiree or lumpsum investors

Opinion: Why a 100% stock portfolio can ruin your retirement
very often we hear about ignoring stock market volatility and just keep invested or to do DCA.

However, this is only true for people with extended timeframe and who has an active income.

For retirees and lump-sum investors, it might be more prudent to keep to an asset allocation strategy and rebalance periodically. You might not get the normal equities return of 8-10% annually, but you will sleep easy with a 4% withdrawal rate. Though it comes with another risk, Inflation, which will reduce your purchasing power for the same dollar.

I have been investing for 7+yrs full time in equities/bonds ... and have come to the realisation, real estate is probably a better way to get returns for people who can afford to buy properties.

4 comments:

Kyith said...

why would property be a better bet? wouldn't the rental be subjected to market forces and you might face purchasing risks as well as fluctuating in asset value?

Createwealth8888 said...

True.

More conversation with big fat wallet investors preparing for their retirement, I have discovered that properties, highly-rated leveraged corporate bonds and lesser equities portfolio is their preferred way of building investment portfolio.

millionfaith said...
This comment has been removed by a blog administrator.
James said...

Just to get your advice on getting property, do you think private property in sub-urban area are worth to purchase?

Also if I purchase bukit timah condo, is it a good investment? Or should I go for shophouse instead?