According to Paris-based asset management giant Natixis, investors believe they need an average annual return of 9.3% – over and above inflation – to cover their costs in retirement, and 80% believe this rather, ahem, optimistic goal is achievable. Indeed, a full 87% expect their returns this year will be the same or stronger than last year. The truth of the matter, though, is that investors need to take a more realistic view of their portfolio, and plan for the unexpected.
The Natixis study suggests that, given such high hopes for their portfolios, investors might well panic and be prone to making knee-jerk decisions in the face of a market disruption.
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