Funding Through Retirement

The Risk of Not TAKING RISK

How do I grow my portfolio without any risk? Unfortunately, it does not work like that. There is a specific relationship between risk and return. The higher the risk, the higher the potential rate of returns. Keeping your money safe in a ‘no risk’ investment may increase the risk of not having enough money to meet your retirement needs.

Safe investments may provide a very low or in some cases a negative return when taxes and inflation are considered.

No Risk Investments  
Rate of Return 4.00%
Less Taxes -1.74%
Less Inflation -2.00%
Real Return 0.26%

* at a 43.41% marginal tax rate

A real return of 0.26% is more than likely not enough for your retirement needs. It seems that not taking any risk, may be the greatest risk of all.

Investment Timelines

Having a clear understanding as to when investments are required is an important component to determine your investment choices. In the short or medium term, investments may experience low or even negative performance.

Investment products are divided among three broad asset classes;

  • Security
  • Income
  • Growth

Your investor profile is determined by your risk tolerance and your investment time horizon. As your partner in building wealth, a Legacy representative will help you establish your investor profile and recommend products most suited to your needs.

ERRL, Your Personalized Investment Manager

Your customized plan automatically reflects market changes and is ready to adjust to the shifts in your life. Our approach is based on extensive research and back tested to provide a tailored experience. A comprehensive financial plan helps you to Construct a lifelong cash flow forecasts, showing all the money you will receive and all the money you will spend in your lifetime. The cashflows use prudent assumptions to protect against inflation and uses realistic returns.

The Risk of Not TAKING RISK

How do I grow my portfolio without any risk? Unfortunately, it does not work like that. There is a specific relationship between risk and return. The higher the risk, the higher the potential rate of returns. Keeping your money safe in a ‘no risk’ investment may increase the risk of not having enough money to meet your retirement needs.

Safe investments may provide a very low or in some cases a negative return when taxes and inflation are considered.

No Risk Investments  
Rate of Return 4.00%
Less Taxes -1.74%
Less Inflation -2.00%
Real Return 0.26%

* at a 43.41% marginal tax rate

A real return of 0.26% is more than likely not enough for your retirement needs. It seems that not taking any risk, may be the greatest risk of all.

Investment Timelines

Having a clear understanding as to when investments are required is an important component to determine your investment choices. In the short or medium term, investments may experience low or even negative performance.

Investment products are divided among three broad asset classes;

  • Security
  • Income
  • Growth

Your investor profile is determined by your risk tolerance and your investment time horizon. As your partner in building wealth, a Legacy representative will help you establish your investor profile and recommend products most suited to your needs.

ERRL, Your Personalized Investment Manager

Your customized plan automatically reflects market changes and is ready to adjust to the shifts in your life. Our approach is based on extensive research and back tested to provide a tailored experience. A comprehensive financial plan helps you to Construct a lifelong cash flow forecasts, showing all the money you will receive and all the money you will spend in your lifetime. The cashflows use prudent assumptions to protect against inflation and uses realistic returns.