Because of older age, the usual attractions of a selected plc portfolio may not offer either enough security or time for capital growth.
A 65-Year-old today | Man | Woman |
75% chance of living to age | 79 | 82 |
50% chance of living to age | 87 | 90 |
25% chance of living to age | 94 | 96 |
Women have a 14% chance of living to age 100 and men a 9% chance | 100 | 100 |
This is a classic example of when it is entirely appropriate to take professional advice
A globally diversified portfolio of 12,000 stocks is less of an investment risk than either a small business or a rental property.
What is the time horizon? It is usually the horizon of their children who will be getting the money.
Thanks for the clarifications on precious metals v diversified porfolios.
The person concerned has only sought "professional" advice from banks and was not impressed by that.
I suggested that he go to one of the advisers locally who deal more with more well-off clients as they would have more experience in dealing with this sort of matter.
Can you provide a ballpark figure for the cost of assessment and proposals by a competent firm in this area ?
Extreme care has to be taken with the selection of adviser here, you will appreciate - some of these have disreputable associations.
Around retirement age.
A globally diversified portfolio of 12,000 stocks is less of an investment risk than either a small business or a renal properties.
$ 100 invested in a S&P 500 ETF in 2002 would now be worth, with dividends re-invested, would now be worth $ 430
This is an annual return of around 7.5%
Is that ok?
Yeah, and 100 EUR invested in the Eurostoxx50 at its max in 2000 is today worth 72.45 at end of last year.$ 100 invested in a S&P 500 ETF in 2002 would now be worth, with dividends re-invested, would now be worth $ 430
This is an annual return of around 7.5%
Is that ok?
Ouch. I assume that excludes dividends/dividend reinvestment?Yeah, and 100 EUR invested in the Eurostoxx50 at its max in 2000 is today worth 72.45 at end of last year.
Yeah, and 100 EUR invested in the Eurostoxx50 at its max in 2000 is today worth 72.45 at end of last year.
7.5 % compounded over 10 years is 206 % - say 200 % after management charges.
Now, while is is safe enough, it might be nice to split an investment pile between ETFs and actively managed funds say 75 : 25.
I have been reading a bit on ETFs and have come across these "small beta" funds that allow a measure of investment in smaller but high growth potential companies, though this demands more management time and hence higher charges.
Any thoughts on this for a 70 y.o. couple ?
I think the interesting question is will these (e.g. small, value) premiums continue to exist over next 40 years, or now that it is 'well known', will it disappear?
Thanks for the interesting data and docs.Its a very good question. They didn't seem to disappear over the last 12 months
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When the Cheapest Option Isn't Always the Best - Everlake
We're advocates of low-cost investing. However, an obsession with the lowest cost option isn't always in investors' best interests.globalwealth.ie
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