A good investment decision generally involves evaluating greater returns when balancing risk considerations. When choosing between two investments with a 20-year annualized average return of 7%, risk-averse investors should choose the one with the lower standard deviation or the degree to which that investment has historically fluctuated around its average.
While on more risk can result in potentially higher returns, taking unnecessary risks can be detrimental to portfolio performance. This is especially true for retirees who rely on consistent, ongoing distributions from their portfolios to support their lifestyle. In retirement it is critical to keep portfolio volatility to a minimum and diversify to manage risk, and by doing so it is a way you can achieve solid long-term returns that outperform inflation.
Where retirees placing their funds?
Retirement for many lasts longer than expected. It marks a pivotal shift not just for people’s lifestyles but also for their investment portfolios. Their focus turns from accumulating assets and growing their wealth to how they will live off those savings, potentially for decades.
Retirees typically shift to safer, capital-stable investments that are less likely to experience sudden declines. However, they still need some high-yield investments to keep up with inflation and the rising cost of retirement living to ensure they don’t run out of spending money.
Fortunately, several non-bank alternative investment companies are now offering fixed income solutions with high yields to the market. These solutions provide products where the lender agrees to lock up their money for a pre-agreed term in exchange for a fixed rate of interest on their capital. In terms of features this is almost identical to how term deposits work – they are a loan to a bank – except with a different risk profile which is compensated for in the form of an interest rate premium. Fixed income solutions like the one offered by Provide Capital can benefit retirees due to it providing a regular income stream and being capital-stable.
Enjoy earning monthly income with Cash Rate Plus™
Created by Provide Capital, Cash Rate Plus™ is a program for anyone seeking a meaningful interest rate on their capital while keeping pace with changes in official interest rates. The program allows clients to enjoy the benefits of a high-yield, fixed-term solution ranging from 6–120 months with the option of interest paid monthly or compounded.
This is a capital-stable, variable interest rate opportunity at par with the official interest rate set by the Reserve Bank of Australia (RBA). Moreover, Provide Capital offers all clients a dedicated, Australia-based point of contact who clients can call or email directly during business hours.
The company and its related parties utilize capital sourced via the Cash Rate Plus™ to fund transactions in a wide variety of asset classes including credit, private equity, and real estate.
By joining the Cash Rate Plus™ program, individuals can enjoy meaningful interest rates of up to 7.85% per annum. It is free to join, and there are no setup, monthly or management fees, which makes it a popular option for retirees or anyone looking to build their investment portfolio effectively.