COVID-19 has upended the entire global economy and caused millions of people to lose their jobs. Over in Singapore, the Ministry of Trade and Industry (MTI) projected the GDP growth for 2020 to be -7.0 to -4.0 per cent. This is certainly a very frightening period of time in the modern day history. Against this backdrop, is it even possible for a retiree to preserve wealth amid COVID-19?
A retiree who is in his twilight years has a short runway and limited timeframe to build wealth. So at this phase of his life cycle, the strategy should be to preserve wealth instead growing wealth through the stock market. The recent sharp corrections in the stock market should be a stark warning on how risky the stock market can be, especially for the seniors.
Furthermore, with no active income, it will be a challenge for a retiree to do capital injections into his investment portfolio. So when you reach retirement, it is important to protect your money and preserve wealth. This means that the seniors must look beyond the stock market to preserve wealth and ensure they have enough money to sustain till the end of life journey.
Maybank 2.05% Fixed …