The Income Generation Report
Portfolio failure is an unspoken crisis that is quietly decimating the dreams of countless people with the hopes of enjoying a more financially secure retirement. The 50-year-old who invested in the stock market during the summer of 2000 and planned to retire at 65 may have had to let that birthday pass and continue working for a few more years. The
reason? They followed the advice of the so-called financial experts who told them to invest a large part of their portfolio in the stock market.
From the summer of 2000 to the close of 2016, aspiring retirees earned an average of just 1.9% per year in stocks.1 The expected return required to enjoy a more comfortable retirement may have been between 5% and 6%. What’s worse is that while stock market investors were averaging
returns of just 1.9%, the cumulative inflation rate was 39.4%.2 And, the problems keep mounting. Indications dictate that keeping interest rates low will only increase the likelihood of another stock market collapse. The crisis will only continue to grow as those planning to retire over the next 20 years discover the all-too-common reality of portfolio failure.