by The legendary investor Ken Fisher has a message for pensioners and those who are retiring – you can set up the allure of “capital retention” for financial disappointment.
Fisher, known for his no-nonsense approach to investing, argued in a New York Post Opinion Report that was published on Monday that the concept of capital retention is promoted as a refuge for pension savings fundamental with the growth needed to A comfortable pension to be supported.
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“Growth and true capital retention cannot co -exist in the short term,” Fisher explained. He said that what many consider as “safe” investment strategies often do not keep pace with inflation, so that purchasing power may be eroded over time.
The center of Fisher’s argument lies in the role of market volatility. Although many investors consider the volatility as a threat, Fisher sees it as essential for long -term growth. He said that historically the US shares have risen in 63.1% of the calendar months and 73.5% of the calendar years from 1925 to 2023.
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“Eliminate the [downside] and the [upside] Also disappears, “Fisher said. He claims that attempts to completely avoid market fluctuations, usually resulting in ultra -ow rods, hardly surpass – or even behind – inflation.
The investor was aimed at financial products that promise growth and capital retention and called them ‘fake’.
“Investment strategies that promise both growth and capital retention are Nepbaloney,” Fisher said. “Nevertheless, so many suppliers in different forms – especially in rocky times such as this summer – are different, paddling poor products that are destined to disappoint.
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He warns investors who are particularly wary of insurance -like ‘buffered’ funds and every product that claims ‘upside down without a disadvantage’.
Instead, the investor argues for a clear approach to pension investment. With investors, he insists that the short -term volatility is the entrance fee for long -term growth. For those who cannot tolerate market -ups and downs, he suggests evaluating financial goals, savings and future spending plans.
