Think beyond “1+1=2” in multi-asset
Tapping more than one income sources could help enhance income and cushion risks.
Asian households tend to be good savers but being so does not guarantee an ideal retirement life. Why? It’s because they put a majority of their savings in cash and do not invest enough. Over 2003-2017, the real return for cash was -1.8% in Hong Kong1.
After all, cash is not always king.
Assume you started saving at 25 and accumulated HK$10 million by 65, you would need to have saved HK$9.2 million if you only had cash savings, as opposed to HK$1.4 million if you invested in a portfolio with 60% equities and 40% bonds2. In other words, you would need to save 6.7 times more if you relied only on cash savings.
Start early and use time to your advantage. Get invested, especially in growth assets, to help you fight inflation and reduce the contributions you need to build your retirement assets.
Download Retirement Insights Publication: Investing for Retirement