Loss aversion means some people avoid annuities because a premature death may lead to a loss of capital, but lifetime annuities with death benefits aim to address this problem.
Author Archive | Aaron Minney
It’s often assumed one of the primary aims of wealth accumulation is to leave money for the kids, but retirees realise their own longevity means they need to look after their retirement first.
The old investment rule that assumed the majority of retirement income would come from late-stage earnings no longer applies when returns are low, placing more importance on early accumulation.
A range of factors determine interest rates, and the yield curve reflects expectations of the future. Even if interest rates look low, waiting to invest is attempting to outguess the market.
The arithmetic mean of the annual returns of the ASX/S&P200 since 1980 is 13.9% per annum, while the geometric mean is 11.6% per annum. This is an annual 2.3% gap. Which returns have you been watching?