"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
It is well known that, over the longer term, shares on the stock market (‘equities’) have outperformed all the other major investment asset classes but over the shorter term returns from this asset class have been more volatile (“risky”).
Different investors have different tolerances to risk but all seek to maximise their returns. Portfolio planning involves combining different asset classes to aspire to, and expect, higher returns with controlled risk.
How?