Investment income returns versus interest rates
Those clients and investors who have sought advice and investment for the medium and long term are now sitting reasonably comfortably for income and growth.
It is not too late to make choices for better income returns. But…remember there is no such thing as a NO RISK investment. Investing in term deposits or bank accounts paying interest rates at a 50-year low has risk. The risk is that the rate of return is less after tax and inflation. The other larger ‘looming risk’ is the increasing average life expectancy of Australians. It is for this reason that capital growth returns should be built into a part of the investment strategy.
This is necessary to provide for your extended life expectancy. In other words, make your money work for YOU. Good investments should provide income and capital growth. Every couple of years growth can be extracted and then left to regenerate.