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Antifragile future Pensioner

Not-so golden oldies, A pension forward-thinking

“The most affluent Baby Boomers have enjoyed a retirement “golden age” of international travel and leisure pursuits funded by generous workplace pension schemes, but those approaching retirement today will struggle to replicate this lifestyle

71%
Almost three-quarters of those due to retire before 2025 have been forced to rethink their plans
61%
Percentage of people who have seen the value of their retirement savings fall

The people I worry most about are those in their 50s who may be facing the inability to work for longer because of age discrimination

today’s ultra-low interest rate environment is “brutal for retirees seeking to generate a return on very conservative investments”

the “4% rule” — a so-called “safe amount” that investors could draw down from their retirement pot each year without diminishing their capital. To think of it another way, they would need to save 25 times the amount they expect to spend annually to generate enough return.
Looking at financial forecasts, “Drawdown numbers under 3% are more realistic for such a low interest rate environment. Now, instead of 25 times more, you need 33 times more

Let’s do the math yourself, just in case the numbers are 2% or even less …

The stock market is almost like buying sheets of paper now, it has nothing to do with the financials of firms. The fact that the values should be lower makes you scared

“For quite a few people, being in lockdown has actually been a trial run for retirement, They’re not spending on holidays, travel or eating out. It focuses the mind on what is essential spending and what is discretionary.” FT

So, the future is in the between of a smarter way to make your #capital #sweating and a new #frugality in the lifestyle

what’s next? #Stagflation with a #storytelling of growth

3 waves of debtors’ failure outbreak … #Consumer #Corporate #Sovereign

Central Banks and Governments dislocation in full mode, JUNK allover in the balance shit

 

Workers in their 50s may have to rethink their long-term plans

The holistic way to think, implement and manage a better antifragile future

FROM RISK LEVERAGING TO RISK HEDGING

Smart investors have to become #savvy and #comfortably adapt to manage the asset allocation not just with government #bonds, but addressing the hedging issue with

alternative categories long/short including

#cash,

#gold,

#cryptocurrencies,

#volatility,

#putoption and

#algos based #software in different assets starting from #currency

“The #coupon on your bond holdings provided a material source of return, on top of the #protection you gained by diversifying your equity risk.

Now that double benefit has turned into double jeopardy. As main central banks have lowered interest rates towards zero over the past decade, the yield component of the return on a portfolio of government bonds has evaporated. That leaves capital appreciation as the sole source of future returns. But the room for prices to rise has arguably all but disappeared too.

asset allocators will have to think about alternatives to #bonds, including #cash, #gold, #cryptocurrencies, and explicit #volatility strategies — such as #putoption directly hedging equities — with which they may be less familiar. There are pros and cons to each selection, but the key point is that, with the diversifying power of bonds gone, there is no longer any natural choice.

That inevitably means we should expect lower returns in the future from balanced portfolios because #freeinsurance through the bond market is no longer available.” FT

The holistic way to think, implement and manage a better antifragile future

To pick up your #assetallocation and the #jurisdiction of choice, #macroeconomy analysis and #stability matter more than just the #tax rate #maltaway

Your assets governance www.maltaway.com independent international advisory #investments #governance #wealthprotection #relocation #expat

 

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