colinrealestate

As many Baby Boomers are considering their options for retirement (and whether they have sufficient funding to protect and maintain their life style) they find themselves in exactly the same position as the previous generation, i.e. those approaching or already in retirement in the early 1990s.

Back then, inflation fell from an average of 11% to 2% in 1992 and bank term deposit rates naturally fell sharply as monetary policy was substantially eased. Reserve Bank records show that at the end of 1990, the average six month term deposit rate was 12%. In the middle of 1992 it was 6%.

What did people do? They chased yield. Where did they find it? Finance companies – we all know what happened to many of these high yield finance companies. Will this happen again? On the face of it, one would think not – one would assume that people have learnt their lessons.

What is your investment strategy? Think and plan for the future today!

Filed under: REAL ESTATE | Tagged: Real Estate