Dec 15, 2021
Retirees have traditionally relied on fixed interest and cash allocations in their portfolios to provide sufficient income for life. But the yield or the income return from these defensive asset classes has fallen significantly over the last decade, creating a disconnect between our understanding of income and the traditional risk/return theory.
The impact of COVID 19, the global economic slowdown and increased
use of extraordinary monetary policies by central banks have
further reduced returns from cash and fixed interest to the point
where many cash rates and ten-year bond yields in developed
countries now return a 0% or even a negative yield. These policies
may have supported many weakened economies but have made it even
more difficult for retirees drawing income streams to fund a large
portion of their income needs by the yields on cash and fixed
interest allocations.
In this episode, we discuss some of current strategies for
generating sufficient income for life with Reece Birtles, Chief
Investment Officer, Martin Currie Investment Management, and we
address some of the challenges facing inflation, longevity risk and
income sequencing risk.
More Information:
Franklin Templeton and their specialist investment managers Martin
Currie, Western Asset and Brandywine Global have a number of
investments available through Super Accelerator Plus and Wealth
Accelerator Plus.
Super Accelerator Plus is a superannuation fund that provides
access to a wide range of investments including several Franklin
Templeton funds. See how you can purchase Franklin Templeton with
your super here: http://ow.ly/BsB450HcKBk
Wealth Accelerator Plus is an all-in-one portfolio management and
administration service with an extensive range of investment
options and tax management tools. Learn more here: http://ow.ly/iSUQ50HcKCm
More information on Franklin Templeton's funds, including,
commentary and performance, can be found here: http://ow.ly/KCiK50HbVo4