This translation has been automatically generated and has not been verified for accuracy.The 2-per-cent savings account rate that looked so good in March lost its allure in June.
I also like the bank account over the markets. Stocks rebounded from the alarming lows of March. Looking back, that was a monster buying opportunity. Now, even with Thursday’s selloff, not so much. Without the economy quickly getting back to where it was earlier this year and the pandemic fading, it’s difficult to see markets continuing the incredible momentum we had been seeing in recent weeks.
Let’s assume markets normalize from here. A portfolio for someone in their 80s would be conservatively built and likely have most of its assets in bonds. Interest rates are quite low today, which constrains portfolio gains. Stocks might also be subdued after their mega rally. A conservative portfolio after fees might earn 3 per cent to 4 per cent.