35/65 Investment Mix Is Best
Recent market volatility has hit retirees and those saving for retirement especially hard. Now more than ever, Canadians are concerned about outliving their money.
Proper planning and having enough savings will help with this concern, but one of the most effective ways to ensure your financially healthy retirement is to have the right asset allocation.
A portfolio invested in 35% Growth and 65% Fixed Income provides the ideal balance of capital preservation and income potential for those who are in retirement or those saving for retirement.
This investment mix has stood the test of time.
Most investors simply look at the final portfolio values to judge which investment approach is the most successful. But this is severely flawed!
Investors should look at 'Risk-Weighted' performance. If they did they would quickly see that the 35/65 asset allocation is superior, generating similar returns as a 100% allocation to growth assets with considerably lower volatility.
Low volatility and greater certainty for investment returns should be valued by investors.
- Russell Investments