The US Federal Reserve has decided to keep rates at record lows... Riskier investments by retirees on the rise...
Aussie dollar goes on wild ride
The Australian dollar has experienced highs and lows since the US Federal Reserve decided to keep rates at record lows.
Initially reaching a three-week high trading a US72.77c, the Aussie dollar fell and at 7.30am (AEST), the currency was trading at US71.66c, The Australian reports.
It now remains to be seen whether the Fed will make a move in its October or December meetings for 2015, as the paper reports a set of economic projections from US Fed members indicated a hike in the coming months was a near certainty, with 13 of 17 members seeing a need to make a move this year.
Riskier investments by retirees on the rise
Australian retirees will continue to be forced into riskier investments due to low US rates, an article in the Sydney Morning Herald reports.
Martin Currie chief investment officer Reece Birtles says retirees need to keep hold of high-yielding growth assets.
"Today's retirees are not only living longer, but they need to make their savings last in a low-growth, low interest rate, post-GFC world where asset prices have been inflated by central banks. Defensive asset classes, such as term deposits and bonds, just aren't going to deliver enough income for people to live on in retirement," he said.
"The traditional approach whereby investors switch their asset allocation, from a 70:30 growth to defensive assets split during their working years, into reverse when they retire, is not going to work anymore".
The Australian dollar has experienced highs and lows since the US Federal Reserve decided to keep rates at record lows.
Initially reaching a three-week high trading a US72.77c, the Aussie dollar fell and at 7.30am (AEST), the currency was trading at US71.66c, The Australian reports.
It now remains to be seen whether the Fed will make a move in its October or December meetings for 2015, as the paper reports a set of economic projections from US Fed members indicated a hike in the coming months was a near certainty, with 13 of 17 members seeing a need to make a move this year.
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Riskier investments by retirees on the rise
Australian retirees will continue to be forced into riskier investments due to low US rates, an article in the Sydney Morning Herald reports.
Martin Currie chief investment officer Reece Birtles says retirees need to keep hold of high-yielding growth assets.
"Today's retirees are not only living longer, but they need to make their savings last in a low-growth, low interest rate, post-GFC world where asset prices have been inflated by central banks. Defensive asset classes, such as term deposits and bonds, just aren't going to deliver enough income for people to live on in retirement," he said.
"The traditional approach whereby investors switch their asset allocation, from a 70:30 growth to defensive assets split during their working years, into reverse when they retire, is not going to work anymore".
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