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26 Feb 2020

Return Expectations: The Big Shift

Back in 2010 an investor could achieve a 4.0% per annum return without taking large risk with the capital invested by purchasing government and or corporate bonds.

Today, to get the same return an investor has to take more than double the risk.

The collapse of interest rates globally has caused a big downward shift in the risk return profile for all asset classes and the hard truth is that we will need to accept less capital accumulation for retirement.

Click for chart.

However all is not lost because even with forecasted lower rates of return, regular disciplined saving will still have a material positive impact on the final size of your capital accumulation for retirement.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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