This article explains about the loss of income for retirees
http://www.cnbc.com//id/48776785
A large cause of the loss of income is caused by the extremely low interest rate, and retirees depend on interest income earned on their past savings. The loss interest rate environment is not fair to retirees, and is a form of hidden tax. The interest rate is now below inflation rate, especially when retirees invest in "safe" government bonds.
Relying on the appreciation of houses is also dangerous, as seen from the US experience. This will also hit the inflated housing market in Singapore, in due course.
Even "safe" investments are not safe anymore. The municipal bonds in the USA may default. Some government bonds issued by European governments are now questionable.
The "best" investment is to invest in a diversified portfolio of blue chip shares. This is explained in my talks on investments conducted by FISCA (www.fisca.sg, Events). You can invest in an indexed fund, including ETF of index funds.
http://www.cnbc.com//id/48776785
A large cause of the loss of income is caused by the extremely low interest rate, and retirees depend on interest income earned on their past savings. The loss interest rate environment is not fair to retirees, and is a form of hidden tax. The interest rate is now below inflation rate, especially when retirees invest in "safe" government bonds.
Relying on the appreciation of houses is also dangerous, as seen from the US experience. This will also hit the inflated housing market in Singapore, in due course.
Even "safe" investments are not safe anymore. The municipal bonds in the USA may default. Some government bonds issued by European governments are now questionable.
The "best" investment is to invest in a diversified portfolio of blue chip shares. This is explained in my talks on investments conducted by FISCA (www.fisca.sg, Events). You can invest in an indexed fund, including ETF of index funds.
:.
0 comments:
Post a Comment